31 Jan Key Questions to Ask an Online Business Loan Lender in Australia
Securing a loan from alternative money lenders has many benefits in comparison to your traditional banks or credit unions. But, when borrowing funds, it is vital that you secure them from a reputable loan lender. Private lenders are great for SME’s, they allow them to secure a loan agreement when most conventional institutes won’t entertain them. You must ask these key questions before agreeing to any contract online.
Am I eligible for a short-term loan?
An online business lender should be honest with you from the start. In Australia, most alternative lending organisations will only offer you a loan if your business has been trading for at least 12 months. If your company has only been operating for a few months, you’ll find it very challenging to secure a loan under these circumstances. Furthermore, alternative money lenders will also want to know about your income, you must be making in excess of 5,000 dollars a month before you are considered for a loan.
How do I apply for an unsecured loan?
An unsecured loan is available to business owners who don’t have enough capital to get a secured loan. You won’t be able to borrow as much money as a secured loan because you aren’t putting anything up as capital. You must be able to provide other information with regards to your business such as your monthly income, and bank account details. You must be able to prove your company has been trading for over 12 months and is making enough money to make regular repayments.
Can you provide an outline of your application process?
All online money lenders will have a similar process when it comes to applying for a loan. In general, most will go something like this.
- Complete your application online, fill in all the requested information to submit your request.
- The money lending organisation will ask you to submit further documentation once they’ve finished processing your online request. Supporting documents will include bank statements and other important forms.
- Your request will be assessed by a credit team.
- You’ll then receive your forms, which must be signed.
- Finally, your money will be transferred to an account of your choice.
How do I make repayments?
Most online money lenders will allow you to make repayments either daily or weekly, some may allow monthly but usually on larger loans. You’ll have to set up a direct debit, so you can pay your money lenders as per your contractual agreement.
Is the interest rate affordable?
The vast majority of online money lenders will offer variable rates when it comes to alternative loan applications, they usually offer a rate depending on each individual application, so you won’t get a fixed interest rate.
Online business loan lenders are excellent for borrowing money if you have bad credit or you’ve no fixed assets to use as capital. They offer a wide range of loan options, and they’re more sympathetic towards SME’s trying to establish themselves as profitable businesses. Remember to ask as many questions as possible before you sign any contract.