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Making the Most of your Small Business Loans

Small Business Loans are the bank’s way of helping out the little guys or small-to-medium enterprises (SME).

This type of loan is extremely beneficial when it comes to starting up your business or if your business is in financial strife. However, though lower payments and longer repayment terms may work in the short term, you should be aware of how it affects your business in the long run. To help you avoid financial trouble, we’ve put together a list of common mistakes made by small businesses to ensure you’re not one of them.


Mistake: Not having a business plan.

Solution: Discussing specifics with your broker.

Prior to your loan application, take the time to determine exactly what you intend to use your loan for, so your broker can propose the best loan for your situation. For example, if you are looking for a loan to cover new equipment, there’s an equipment loan for that! For more information on the different types of small business loans, get in touch and we’d be happy to run you through them.


Mistake: Wait, what’s a Business Plan?

Solution: Business Plan 101.

A lender is more likely to provide you with the right loan if they can better understand your business, including where the money is coming from now and where it will come from in the future. A well-constructed business plan, including your products, services and target audience, will better enable the lender to tailor a solution to your needs. Our team can assist you in compiling all the necessary information needed for your business plan.


Mistake: Not keeping your finances up to date.

Solution: Update them!

Depending on the size of your business, lenders may also require information regarding your personal finances as well, so it would be a good idea to have them on standby too. If you feel this may be a bigger job than anticipated, we’ll be happy to help you out.


Mistake: Ignoring the sneaky fees and hidden expenses.

Solution: Read the dreaded fine print. 

More often than not, business owners sign up for a loan under the impression that the balance of the loan itself is all they need to pay off. We hate to be the bearer of bad news, but usually this balance doesn’t include the administration fees and contract or appraisal costs in addition to standard interest expenses. Upon loan application, be sure to ask your lender about additional expenses to avoid any unwelcomed surprises or if you’re going through us, we will definitely let you know all of the costs involved.


Mistake: Not keeping track of your credit record.

Solution: Ask us about a credit review.

Since lenders check your credit record as part of the loan application process as a means of assessing your level of financial stability, it would be wise to speak to you broker about a free credit check to ensure there’s no issues that would hold things up.


Mistake: Not shopping around.

Solution: Speak to us about our network of lenders.

There’s a plethora of loan options on the market these days, both secured and unsecured, but it can often be confusing to know which is the most suitable product for you. We have a network of lenders, each with various loan products. Your broker will understand exactly what your needs are to provide the most suitable loan product without you having to lift a finger. Leave the running around to us.


If you are planning on taking out a small business loan or would like a review of your current loan, get in touch and book a complimentary consultation.


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Smart Tips For Paying Off Your Home Loan Sooner

It’s the great Australian dream to live mortgage free, yet for many Aussie families, this is considered an unattainable goal – or at least one they won’t achieve until they’re old and grey.

What if we told you paying off your mortgage doesn’t have to wait until you’re eligible for the old age pension? Australian home loan interest rates remain at historic lows, meaning you could be enjoying the freedom of having no mortgage in no time by following a few simple tips.

Get your note pads ready because we’ve complied our six tips for paying off your home loan sooner.


  1. Higher Repayments

An obvious, yet effective, approach. Can you sacrifice the Friday night take-out spend for a reduced mortgage balance? You will be surprised how much an extra $50 – $100 a fortnight/month will impact the term of your loan.

  1. Weekly or Fortnightly Repayments

Put simply: making more frequent repayments. Making extra repayments can take years – and thousands – off your loan. This is an avenue we strongly suggest exploring. Our team would be more than happy to discuss setting a realistic repayment budget if you are considering switching to a weekly or fortnightly plan.

  1. Interest Offset Accounts

An offset account is a savings account or transaction account linked to an eligible home or investment loan. The money you have in this account could offset the amount you owe on that loan, and you’ll only be charged the interest on the difference, so you Save on interest charges, which helps you pay your loan off sooner. Wages and income can also be deposited to this account and they generally only comply with variable rate loans. Still confused? We’d be happy to talk to you and explain how it works.

  1. Avoid Rate Cutting

When lenders reduce their interest rate to coincide with a fall in official rates, consumers often think to reduce their loan repayment. Instead, we suggest maintaining your original repayment, so you are still able to achieve a shorter loan term and save on interest. 

  1. Pay both Principal and Interest

The lower repayments that come with an interest-only loan may seem like a good idea in the short term, but in the long run, it could end up costing you more because you’re only paying the interest initially and not reducing any of the actual mortgage. We would be happy to discuss these options with you.

  1. Get a Split Loan

Unfortunately, this doesn’t mean splitting your loan in half and forgetting about the rest. Split loans allow you to divide your mortgage with variable and fixed interest rates. For example, if you had a $500,000 mortgage, you can choose to “fix” the rate for $450,000 of the loan and the remaining $50,000 can be on a variable interest rate. This enables you to secure a low fixed rate for the main portion of your loan, whilst the variable allows you to make extra repayments and offset this interest rate with your savings.

We hope these tips have inspired you to make an effort to pay off your loan sooner than anticipated! Get in touch with our team and let’s make this dream a reality.