According to the SME Growth Index, Australia’s small businesses are saying they don’t want to use personal assets to fund their business – yet 9 out of 10 of them continue to do so.
While there are many alternative funding options out there, some, like unsecured lending (Fintechs) can often be both expensive and daunting.
The good news is, there is another way – many lenders enable you to access the value tied up in your business assets – including unpaid sales invoices, plant and equipment and stock purchases.
From improving cash flow and paying wages to buying stock and importing goods, accessing the value tied up in your balance sheet, allows you to unlock hidden opportunities in your business.
Benefits of borrowing against business assets
- Speed: It’s quicker and isn’t as involved as a long-term loan. In many cases, you can gain access to funding within a day, and the paperwork is fairly minimal when compared to most other types of loans
- No reliance on property: You don’t have to put up real estate like your home or commercial property as collateral. With this arrangement, your business assets – such as outstanding invoices – act as collateral, and are all you need to obtain funding
- Supports growth: Slow or late paying clients can put a serious strain on your cash flow and make it difficult for SMEs to take the next step. By using your business assets as security, you’re not stuck waiting for invoices to be paid, you can get access to the equipment you need and you can stay on the offensive by capitalising on growth opportunities
- Flexibility: Every business has different needs and assets that are of value. When you lend against your business assets, you have more ways than ever to generate working capital.
Whether you are looking to expand your business, boost working capital, improve your day-to-day cash flow or even buy a business, there are a range of business finance solutions available to help you succeed.
Meridian Business Finance, our partner firm, provide the services of dedicated personal bankers who can tailor solutions to your needs. Speak with your Concierge to find out what working capital solutions are right for your business.