What type of business are you?
Before you start to decide on finance products and options, it’s a great idea to pin down exactly why you need finance and what type of business you are. This helps you to create clear objectives that can help paint a clear picture to lenders about why finance for your business makes sense.
This is less about what industry you’re in, or how you are different to your competitors, but about how your business is structured – as this can also have an effect on how the lenders assess your applications and the type of finance they can offer you.
Business Structures. The most common business structures are Sole Traders, Partnerships, Companies, Trusts, and Self-Managed Superannuation Funds (SMSF).
Business Types. There are all types of business but most fall into these general groups: Small to Medium Enterprises (SME), Franchise, Online Business, Family Business, Independent Contractor, and Importer/Exporter.
The business structure has an impact on your management, governance, tax obligations and exposure of your personal assets – all of which the lenders take into consideration when assessing your application. So not only does it help to speak to us, it’s a good idea to chat to a finance professional like your accountant who can advise you on how your business structure can impact your financial position when it comes to lending.