The Challenges of Getting a Business Loan—And How a Business Loan Broker in Armadale, Fremantle or South Perth Can Help You Beat the Odds

Especially for small businesses and new ventures, getting a business loan can be nothing short of a nightmare. Quite simply, most banks aren’t willing to take a chance on businesses with limited credit or history. As a result, many ventures struggle to find the financing they need to get off the ground—let alone flourish.

At Peter Dunn Finance, we understand the challenges that small or medium sized enterprises face when looking for financing. As business loan brokers based in the Perth area, we can do the legwork for you and find a solution to your financing woes. But why is it so difficult to get a business loan, and how can your business beat the odds? Below, we have outlined some of the bigger challenges that small or medium businesses face when applying for loans.

Why Getting a Business Loan Can be Challenging

Bad credit or no credit: When you sit down with a business loan broker in Armadale or Fremantle, one of the first things the broker is going to want to know about is your business’s credit score. If your business has poor credit from late payments or credit overdraws—or if you have no credit, due simply to the fact that your business has only been in operation for a few months—your chances of getting a loan decrease dramatically.

Limited cash flow: Few businesses are profitable right out of the gate, and some can only show limited cash flow figures for the first few months of operation. It takes time to establish a brand, get the word out to customers and start bringing in money. Unfortunately, similar to a credit rating, cash flow is one of the signifiers that banks use to assess the ‘creditworthiness’ of a business. For start-ups, it can be almost impossible to secure financing from traditional lenders, just because there isn’t much cash flow to show just yet. Banks don’t want to take a risk on a business that might not be able to make loan payments.

Missing application materials: Applying for a loan for your business involves more than filling out a piece of paper. On the contrary, you also need to provide a slew of accompanying materials—including your business plan, your tax returns, your credit reports, your bank statements, your financial projections and more. If you don’t have everything prepared for your application, most lenders aren’t going to take the time to coach you through the process. They will just reject your application outright.

Find the Right Financing for Your Venture, with the Help of a Business Loan Broker in South Perth

Sitting down with a business loan broker in Fremantle, Armadale or South Perth will help you consider your options, find loan opportunities you might not have known about otherwise and get your loan application materials in order. At Peter Dunn Finance, we bend over backwards to help businesses—even small companies or brand new start-up ventures—secure the financing they need to succeed. As business loan brokers that serve the Perth metro area, we are happy to sit down and speak with you about your business financing. Give us a call on 0427 947 480 to get started.