Have you ever wondered why so many businesses, even successful ones, seek commercial loans? After all, if your business is ticking along nicely, there’s a good chance you’re financially stable, have minimal debt, and have low-risk levels. So why not just keep things as they are?
Firstly, if you’re a small to medium-sized business (SMB) like us, take a moment to reflect on everything you’ve achieved so far. Running a business is no small feat—it requires grit, determination, and a fair bit of coffee! However, I believe that success isn’t a finish line; it’s an ongoing journey. No matter how well you perform, there’s always room for growth and improvement.
This brings an important question: what is the next step for you and your business?
As a business owner or investor, you may be ready to expand into a new market, invest in cutting-edge technology, or secure that perfect location. Whatever the opportunity, one thing is sure—growth requires resources, and resources require capital. For many, a commercial loan is the best way to access the funds needed to seize the moment.
Commercial Loans: The Fuel Driving SMBs and Investors
A commercial loan isn’t just a financial tool; it’s a strategic enabler. It allows you to move quickly, act decisively, and focus on scaling without the stress of depleting your cash reserves.
While saving for growth might seem like the safer route, waiting often means missed opportunities. Time-sensitive deals don’t wait, and neither should your business.
Here are some of the types of commercial loans available to businesses and investors:
- Owner-Occupied Loans: For businesses using the property as their primary location. These loans often have favourable terms and higher loan-to-value ratios.
- Investment Loans: For investors purchasing commercial property for rental income. These typically require larger deposits.
- Development Loans: For constructing or renovating commercial properties. Due to higher risks, these require substantial deposits and strict documentation.
- Trade Finance: A range of financial products and instruments that help businesses finance products, plant and equipment & raw materials, both domestically and internationally.
- Working Capital: A range of financial products used to support your business cash flow and growth aspirations.
Government Grants – The Australian Government offers a range of business grants that could complement your financing strategy. With over 1,500 grants currently available, you might discover even more ways to support your growth. Visit business.gov.au/grants-and-programs to explore what you’re eligible for.
Benefits of Investment & Business Loans
Growth is exciting, but it doesn’t come without challenges. Consider the following scenarios. In each case, the ability to access capital quickly isn’t just beneficial; it’s critical to achieving their goals.
A business experiencing rapid expansion may struggle to keep up with demand. Imagine business is booming, and demand is outpacing supply. You’ll need to invest in equipment, hire staff, or secure larger premises—often upfront. Commercial loans ensure you can keep up without losing momentum.
Growing an established business often means breaking through a plateau. Many businesses hit a point of comfort where growth is stagnant. To break the barrier, you’ll need resources. When diversifying offerings, investing in technology, or hiring specialists, access to capital is crucial in reaching the next level.
Seizing a time-sensitive opportunity can be golden, but it may only come knocking once. Maybe a competitor is selling, or a prime has opened up. Without access to quick and reliable capital, these investment opportunities can slip through your fingers.
Securing the right Commercial Loan
Taking out a commercial loan is about more than accessing funds; it’s about deciding the future trajectory of your business. Are you ready to expand, innovate, and seize new opportunities, or are you comfortable maintaining the status quo? Either choice is valid, but it’s worth considering what’s possible with the right resources behind you.
I will stress that, unlike residential loans, commercial loans have unique features, stricter lending criteria, and potentially higher interest rates. As with all financial circumstances, it’s recommended that you speak to a professional.
When it comes to commercial loans, here are a few of the things I like to focus on to help my clients get the best outcomes:
- A free strategy session to assess goals and explore options.
- Provide tailored advice while considering financial and accounting goals.
- Minimising risk (on a personal and business level).
- Compare options across multiple lenders whilst giving clear, honest advice to ensure your loan fits your financial situation and objectives.
- We do the hard yards when handling the paperwork and dealing with the complexities.
Ultimately, the goal is to get the financing you need hassle-free and with peace of mind. From there, the sky’s the limit!
Now, there’s one last important factor I want you to remember: Success has a ripple effect! Growing your business has a tremendous impact on the future well-being of your family, employees, and community.
It’s a big part of why I enjoy doing what I do. I’ve seen firsthand how proper funding can transform the lives of business owners and investors. Whether helping a family-owned café expand or enabling a business to launch an innovative product, it’s always rewarding to be part of someone’s success story.
So, here’s to you—the entrepreneurs who dare to dream and the businesses growing from strength to strength.
Cheers to your next big move!
When your ready to take the next steps, check out our Commercial & Business Loans page for more information. From there you can book in a quick chat with one of our lending specialists.
Any advice on this site is general nature only and has not been tailored to your personal objectives, financial situation and needs. Please seek personal advice prior to acting on this information. Any advice on this website has been prepared without taking account of your objectives, financial situation or needs. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.
