Taking Care of Business – Managing Your Small Business Finances

Small Business

Small to Medium business growth is on the rise in Australia. With government grants available each year, tax incentives, write-off options and the emergence of a flexible lending market targeted towards savvy SME’s (Small-Medium Enterprise), it’s a good time for business owners, and an important time to ensure you’re managing your small business finances.

“Thankfully, the financial world has changed for the better, and there are now far more options, with varying degrees of flexibility and features, for business owners.”

Just a few years ago seeking funds as a start-up, improving cash flow, or funds for building upgrades/ fit-outs was a challenge for small business owners. You needed to tick a lot of very rigid boxes with major banks were subjected to less than attractive rates and fees. We speak with a lot of operators who had to use their own property as security for business loans, personal credit cards to cover invoice costs, with little help from their primary lending institute (typically the same lender that they have their residential mortgage with).

That’s a lot of personal risk on the table, which can become quite costly in a very short amount of time. Thankfully, the financial world has changed for the better, and there are now far more options, with varying degrees of flexibility and features, for business owners.

The move away from traditional business lending has made it so much easier for businesses to access funds required to help continue growth, without getting bogged down in red tape, so they focus on what they do best: running their business.

Last month Diverse Lending Solutions helped a young-couple reach their dreams of opening a Yoga & Fitness studio on the Sunshine Coast. The couple needed the right product to suit their needs, and it took solid research and product knowledge to find the right facility for them. In the end, two very happy clients, one amazing looking studio and a business that is thriving in its first month.

That same week we helped a client fund the purchase of a new truck for his auto-electrical business to meet his growth needs. He needed a new truck, with toolbox’s installed, to meet the demands of lucrative contracts he had secured. This meant finding a solution that enabled him to service more contracts, improving revenue, without using his residential property as security.

With the emergence of new players in this lending space, it pays to know what you really need:

how much funding are you seeking?

What terms are you looking for?

How quickly do you need the cash?

These are essential questions that we take the time to discuss with our business clients to ensure we understand precisely what they want and need.

Starting and running your own business is an equally exciting and daunting experience (just ask us!), and can be full of traps and pitfalls if you aren’t careful – especially when it comes to lending.

We love helping clients navigate through the muck and find a path to successful business growth.

“Spend time talking with the right people, who have access to the right products for your business. ”

If you operate a business, or know someone that does, and need to talk about how you can improve, then maybe it’s time we had a chat!

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