Applying for a business loan is Australia requires you to follow a standard set of guidelines as issued by the local government. One of the preliminary requirements for a business loan is to have a detailed business plan and contingency plan prepared that informs the potential lender(s) about your venture.
While a contingency plan is not really necessary like the business plan, it can help increase your chances of being awarded a business loan. Let’s take a look at some of the things you need to consider in order to qualify for a business loan in Australia.
Questions to Ask
Once you have created a business plan, you should ask yourself the following questions:
- How much money do I need to borrow to start my business?
- What type of loan do I need?
- How long will I need the loan for?
- Can my business repay the loan in the specified time period?
- What interest rates, ongoing fee, and one-off terms are going to be associated with the loan?
- What securities can I offer to the lender?
- How will the securities affect the interest rate?