The array of paperwork and records required for a regular business loan can be enough to make some give up on the whole process. There is however, an easier way. Low doc, short term or unsecured loan allows a business to access finance without the full inquisition sometimes required by a bank for a traditional loan. Let's take a look at some of the advantages and disadvantages of low doc business loans.
As the name implies, a low doc loan requires less documentation than a standard loan. This means that you may be eligible for a low doc loan even if you cannot provide tax returns, profit/loss statements and other financials to support the application. Assessment of your credit rating can also factor into loan applications, and this may be avoided with some low doc loans as well.
Lower levels of paperwork also make for faster application times. You can get the funds needed to expand or improve your business sooner. This can be a big plus for any business where time sensitivity matters.
A regular loan secured by an asset will usually have limits for...
Whether you're in start-up mode or a large company, the management of cash flow is an important and often underestimated aspect of your business. Here are some top tips on how to manage healthy cashflow.
Managing cash flow is an important skill for business owners, and if you are not confident with the numbers, perhaps look at simplifying life by hiring an accountant. Advice from an accountant or other finance professionals can make all the difference in having a handle on cash flow. They will know what to look for and help make sure you are prepared to take advantage of business opportunities without the handbrake of insufficient cash flow. Most importantly, you can focus on what you are good at and let someone else wrestle the numbers.
If this is not an option or you want to take a hands-on approach, read on:
2. Make use of software, apps and automation
Technology has made it much easier to manage day to day tasks such as invoicing and allocating expenses. Getting on top of accountin...
Revenue streams. If you’re lucky enough to have multiple, you’ll already be familiar with the term. For those who are aren’t, adding an extra revenue stream to your business means adding another way you create profit.
Sounds simple right? Well, not normally. The costs of adding revenue streams are often a huge barrier for businesses. The need for capital to create new product, hire more staff and the time it takes to research and establish new market positions is often not worth the effort.
But there’s a new revenue model taking small to medium businesses by storm. Business 2 Business loan brokering has cropped up across the globe, with some of the major players killing it on the stock exchange.
How does it work?
If you operate in a B2B market you can partner up with a reputable company like smartbizloans.com.au. With access to their systems you connect your business with small, unsecured loans from $10,000 - $250,000.
As a broker what do you offer?
The beauty of b...
The countdown is on. When the 2018 Budget was announced and the ATO extended it’s $20,000 instant asset write off to 30 June 2019, small business owners around the country rejoiced.
Because the simplified depreciation method has made it easier than ever to reduce your taxable income and get money back on assets.
First introduced in 2015-16 the ATO initiative provides an instant asset write-off opportunity for small business. Businesses can immediately claim back each asset that costs under $20,000 for the tax year the item was purchased. Sound good? It is.
The initiative has been a god send to many small businesses who have made the most of the generous scheme. Each item whether new or used under $20,000 can be claimed - making it ideal for start-ups, expansions and...well basically any business needing to add machinery, software, technology, tools or anything else that aids in creating profit to the business.
The scheme is particularly great for helping businesses get out of the vicious cycle of having ...
There is nothing like a little reflection to breathe life back into your business, and the start of a new year is the best time to do it. If your business is fresh it’s a great time to get in the habit of checking in, and if you’re a small business veteran it’s even more important to get a fresh perspective. Here are 5 simple steps to guide you in your new year resolutions and set yourself up for success in 2018:
1. Plan your holiday cash flow
The best way to start strong, is to finish strong, and this means planning. Sure, the end of the calendar year is a headache for all of us, but taking the time to plan your holiday cash flow is essential in making sure you start 2018 on the right foot, and get your ducks in a row for the second half of the financial year. Read our blog ‘How to full proof your Christmas cash-flow’ to get you started.
2. Re-forecast your revenue projections
Talk to any busin...
It’s that time of year again, where festivities ramp up, routine winds down, and cash flow goes out the window. If you’ve ever experienced a Christmas cash nightmare, you’re not alone. The rate of business insolvencies in Australia peak in February as a result of many businesses failing to prepare for the blow to cash flow the holiday period typically brings.
But the good news is with some solid planning and close monitoring, you and your business can cruise through Christmas. Here are some top tips to get you started:
1. Monitor your cash flow
In a perfect world, this would be a redundant statement, however far too often small businesses don’t have a proper picture of their regular cash flow. In the lead up to Christmas track and plan your cash flow – then keep a close eye on it. There are some great online tools and cloud based software options that offer easy to use cash flow monitoring. Make sure you know exactly when any big expenses can be expected, then plan for more.