Whether you are a startup or an established small business looking to expand, a finance broker will be able to help you navigate all the important factors when looking at taking out a small business loan.

There are many reasons why a small business owner my want extra funding to support the business.

One of the big-ticket reasons is growth and expansion. You may need to hire additional staff, open at more locations, fund marketing campaigns, or acquire other businesses.

Your business may also need to replace old or outdated equipment or purchase new stock to meet customer demand. Rather than dip into the business’ capital, obtaining a business loan will often be a more effective and flexible strategy.

For a new business, managing cashflow can be a major hurdle and a small business loan can provide the funding and the capacity to deal with the perennial problem of mismatched credit terms between customers and suppliers, or seasonal/sporadic revenue and expenses.

The factors to consider when taking out a small business loan include how much do you need? Borrow too little and you may find yourself short, borrow too much and you may be paying more for finance you don’t need. This is an important area where the advice of a good broker can make a big difference.

Finding the most suitable loan facility is also important as the incorrect loan may not be fit for purpose and may cost your business more.

If you are a newer business with limited historical financial information, you may be better suited to a lender who has lower documentation requirements, as you may be unable to meet the document requirements of some lenders. Alternatively, if you have all the required documents to qualify for a full doc loan you will pay lower interest and fees versus a low-doc lender.

An experienced finance broker will be able to help you secure the necessary funds to grow your business.