It can be challenging to borrow using a traditional bank loan. They can have many requirements that can set your application back for some time.
Are you aware that there are alternatives you can contact that get you approved faster?
Here’s how an alternative lender like Lumi or Moula Finance can help Australian businesses grow.
What You Need to Know About Alternative Lenders
Companies like Moula and Lumi offer a form of business financings such as loans to fund projects, help pay employees and other factors that impact how your business operates.
Unlike traditional banks in Australia, they usually don’t require collateral, up to a certain loan amount, to give you access to the cash you need and offer reasonable interest rates.
These companies can provide an easy, reliable way to get the money you need when you need it. You wouldn’t have to wait days or weeks to get their answer.
Their primary goal is to help businesses in Australia grow without having to sacrifice their credit line or cash flow.
Features of Loans Offered by Alternative Lenders like Moula Finance
A business loan from these types of companies tends to stand out because of their features.
Companies similar to Lumi and Moula Finance usually have the following features:
- Fast Approval Process: You can typically have the application process and approval process done within 24 hours, depending on the company. You don’t have to wait days or weeks to get word of your approval.
- Competitive Interest Rates: The interest rate depends on various factors including your financial situation and the lender you choose. Lower rates can give your business a competitive advantage in the world once you’ve received the necessary funds.
- Wide Range of Loan Amounts: Companies like Moula or Lumi Finance usually provide loans from around $5,000 – $300,000.
- Unsecured Loan: Unlike traditional loans, you don’t need assets for security to receive an unsecured loan agreement from a company like Moula or Lumi.
Basics of Business Loans for SMEs
Business loans have different factors, which should be taken into consideration.
Here are the basics of business loans for SMEs.
Business loans come in different types, which can affect how much you can receive and the fees included.
The type of loan is available from Moula or Lumi will differ from others.
Direct Debit Fees or Early Repayment
A notable feature of these loans from Moula and others is the early repayment that allows you to settle your account earlier than the set payment date.
Remember that the reflected value may be affected if there are constant changes to when you repay your loan.
Connecting Business Data
The company is usually required to connect your business data to provide a view of your application and transactions.
It makes the job of paying easier compared to how a traditional loan is handled.
Rates can vary depending on who you’re borrowing from. Consider the fixed rate and variable rate, which can affect the total fee you’ll have to pay.
You may also find an additional fee for processing, taxes, and more.
You must repay these on top of your principal loan amount.
One of the most notable features is how Lumi and Moula can have everything processed without you having to leave your seat.
Their methods make borrowing more accessible for anyone in Australia.
How to Apply for Business Loans
Applying from creditors like Lumi and Moula Finance is one of the easiest ways to get the funding you need for your small business.
The best part about it is the entire application can be made online.
Here’s an easy guide to applying for a business loan.
- Get Started
Apply online and submit the necessary documents for approval. It should include details on how long your business has been running, the transaction volume, and anything building your business profile.
- Link Your Data
Once everything is submitted, you must link your banking or accounting data to your lender. It will help the lender assess how much they can lend your business.
- Secure Funds
Once your loan is approved, you’ll have to provide your business data to the creditor so they can credit the money to your account. Since everything is done online, transfers are typically completed within the day of your application process.
Why Should You Apply for Business Loans from Alternate Lenders
Besides providing a quick way to fund a small business, a loan can help any CEO or business owner to step up in the market.
These are why you could consider applying for a business loan from an alternate lender.
Improves Cash Flow
A business loan from companies like Moula and Lumi can be a great way to keep your business running smoothly.
They can provide working capital to help generate cash flow, especially during seasonal fluctuations.
Allows You to Scale Up Your Business
Serve your customers better by upgrading your business quickly. You don’t have to wait long or pay a hefty fee to receive that upgrade.
Fund your company’s new tools, equipment, and inventory with a simple business loan.
You can easily refinance any existing loans to maintain your credit as needed.
It can answer your repayment problems and make them more manageable.
Cover Overhead Costs
These loans can help cover your company’s operating costs, especially during slower months.
It can cover utilities, staff payments, and other bills.
You may have more questions about Lumi, Moula Finance, and other establishments like them.
We’ve gathered the most common to help you with your further research.
Q: Are These Unsecured Loans Safe?
A: Unsecured loans, like those from Lumi and Moula, are generally safe when protecting your assets. Provided you make your repayments on time, your credit won’t be affected long-term. Making it one of the best ways to borrow.
However, failure to pay for the loan during the set deadlines can affect your business’s credit. It can prevent you from finding future loans with lower rates and add to your current fees.
Repayments also include any fees that come with what you’ve borrowed.
Q: How to Know if My Business Is Eligible for a Business Loan?
A: You usually need the following when applying for a business loan from companies like Lumi or Moula:
- Business operating for at least six months
- At least $5,000 in monthly sales
Note that requested details may vary depending on where you get your business loan. What may be eligible for one company might not be for another.
Q: What Fees Are Involved for Business Loans?
A: You’ll have to consider interest rates and processing fees on top of your borrowed money.
Some cases may also require repayment fees and the like.
A business loan from any alternative source can be an excellent way for a business to improve its operations.
You should be able to manage as long as you know the limits when borrowing before reaching out to a team.