Applying for a business loan can be intimidating for borrowers new to the process, but rest assured, the loan application process is fairly straightforward with Zippy Financial.
We are MFAA Approved Credit Advisers and ready to help.
Here’s how it works…
First: Identify your eligibility.
Having a one-to-one discussion with a Zippy credit expert can help you to quickly identify your eligibility for the various types of business loan, lease, or line of credit products available to suit the unique needs of your business. We can also recommend specific lenders based on the funding scenario and help estimate how long it will take to obtain your funding. Important information, especially if time is critical.
Second: Apply for your loan or lease
We will help you complete your loan or lease application and verification documentation, including your business profile.
Your business profile should include:
The type of business your company conducts
Your company's annual sales
Total number of employees
A profit and loss statement
Information regarding the length of time your company has been in business
Details of recent ownership history
A lender will usually want to see your business plan, particularly for a start-up company. They will also require personal and business financial statements. If the loan is secured, you will also need to provide information about the collateral being offered. Collateral can include personal real estate, property, business equipment, accounts receivable, inventory and supplies, or business real estate.
The lender will then verify the authenticity of your documents and review your credit file, credit rating and background, as well as the financial history of your business. Your Zippy broker will keep you updated with progress reports throughout the process.
Fourth: Receive loan approval
After assessing your application, if approved, both you and the lender will sign all necessary paperwork, before funds are disbursed or your loan settles (in the case of a property purchase).
How long does it take to get a business loan or lease approval?
The length of time to approve a business loan varies depending on the chosen lender and the business's unique circumstances. Approval can be received within a matter of days or can take several months – usually depending on the complexity of the transaction. Your credit adviser will help estimate the length of time for your loan approval at the outset of the application process.
Business Loan FAQs
What types of business loan and lease financing are available?
The majority of funding these days is secured. Although specific financing offers will vary, most lenders offer a variety of financing options for business owners. Below are a few of the most common financing options:
• Start-up financing
• Business growth financing
• Debtor / inventory financing
• Motor vehicle financing
• Equipment and plant / tools financing
• Business property financing
• Trade financing
How much can my business borrow?
Borrowers with a good credit rating, offering good security and supporting their application with sound background and financial history or projections will have a good chance of success with their application.
How long will I have to repay?
Generally, business loans are set for a term of one to fifteen years, however, this can vary from lender to lender. The amount being borrowed will also affect the term of the loan. A business loan with residential property security can have a term as long as thirty years with some lenders. A loan can also be structured on an interest-only basis, but be cautious with this, as the principal will still be owed at the maturity of the loan.