If it costs under $20,000 and your business needs it, then you may want to take out a business loan to get the benefits. There are a range of different lenders that borrowers get to choose from, as well as loan types to consider.
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When you take out a loan for any amount up to $20,000, you'll naturally have to repay the borrowed sum, plus associated fees and interest within a set time frame. Depending on the loan you take out, this time frame could be as little as one month, or over as long a period as seven years. Once you apply, the lender in question reviews your application, and upon the loan’s approval it releases the funds. You then have to make payments in accordance to the payment schedule agreed upon by you in the loan’s contract.
How you use the loan’s proceeds varies according to the kind of loan you take. Loans that are tied to a guarantee – secured loans – are usually more restrictive in what they can be used for. For instance, with a secured car loan, lenders will normally stipulate whether they will let you finance a used car. With business loans, you generally have to spend at least a fixed percentage of the borrowed amount towards business expenses.
When looking for a loan of up to $20,000 you’ll come by numerous options, and what you have to bear in mind is features of loans can vary considerably.
When you’re out there looking for a loan of up to $20,000, you can use knowledge to your advantage in different ways, and here are some tips that you can rely on to take you forward.
A recent budgetary announcement revolves around a temporary extension in what you can claim as instant asset write-offs. In 2015 this threshold increased considerably from $1,000 to $20,000, while the 2017 budget announced that the program is being extended until 2018. Also, the types of businesses that can take advantage of this have also expanded, from those with annual turnover under $2 million to those with annual turnover under $10 million.
If your registered business has an ABN and an annual turnover of less than ten million dollars, it can qualify for this tax break. Under the new ruling, you can make as many purchases under the $20,000 mark as you like for your small business and you can claim these immediately.
Some of what you can claim includes vehicles, tools, mechanical and electronic equipment, furniture, and office items. You cannot claim plants, internally developed software and inventory items.
The extension of this scheme means that if you’ve been thinking about starting a small business, now might be as good a time as any, mainly because this tax break enables you to make multiple purchases and claim immediate tax deductions until 2018 (provided any Income Tax provisions such as the "Non-Commercial Loss" rules are satisfied).
Before you apply for a loan of up to $20,000, take the following into account:
If your business has outstanding invoices, one of your options could be invoice financing. It's a type of business loan that comes with reduced risk, no asset requirement or no interest payments.
Compare invoice financing products below.
Read our review of the Good for B business loan. Find out if this green business loan is suitable for you.
Whether you're looking to grow your business, support company cash flow or purchase new equipment, Bank of Melbourne could have a loan option for you.
Whether you're looking to support cash flow, grow your business or purchase new equipment, BankSA may have a business loan option for you.
Heritage Bank's Fully Drawn Business Loan is a flexible business finance offering with both fixed and variable rate options, a high maximum loan term and no limit on borrowing power.
What you need to know if you’re applying for a business loan as a sole trader.
BOQ Business Term Loan lets you borrow from $10,000 and benefit from flexible repayment terms and access to a redraw facility.
You may be able to get better rates and loan conditions with increased flexibility, quicker decisions and better customer service through non-bank lenders.
Apply for a loan of up to $250,000 and have the approved money in your account within three days with NAB's QuickBiz Loan.
This small business loan offering from OnDeck could provide you with up to $250,000 financing in 24 hours.
Do you need finance to help your small business grow? Moula offers loans of between $5,000 and $250,000 with flexible eligibility criteria – apply online by providing your business data and find out if you've been approved in 24 hours.
I have just stated working a month ago. Do I qualify for a personal loan
Hi Justine,
Thank you for your inquiry.
Depending on the lender you’re applying for the loan with. Although the eligibility criteria for personal loans is set by each individual lender and is different for each type of personal loan, basically, lenders would need three payslips, bank statements and tax returns as proofs for your income.
I suggest that before you submit a final application, you should review the criteria and get in touch with the lender to discuss your options and chances of approval.
Cheers,
May