Getting a loan can be tricky these days.
With the RBA’s recent announcement of cutting the cash rate to an all-time low of 0.75 per cent, this could have a severe effect on small businesses and their ability to access credit. Banks and large institutions are also becoming more and more rigid with their small business loan offerings, and eyes are being shifted towards alternative lending options.
Here are 3 reasons why SME lending is so important:
- Short-term cash flow
- The maintenance of short term cash flows is vital in ensuring stakeholders of a business are satisfied. And let’s be honest, who doesn’t like looking at a nice, healthy cash flow statement? Especially if a small business is in some rough patches over the short term, giving its cash flows a boost is vital for long term growth.
- Greater output
- A small business loan can be used as a tool to further increase a business’ output. Whether you sell coffee or you’re a car dealership, in the big picture, you’re able to offer more goods and services for the economy, which in turn leads to more consumption.
- Expansion opportunities
- Whether you want to expand your business to a new market or you want to hire more employees, debt is often required. An unsecured business loan is a flexible, convenient way to get the finance you need.
This is when Lumi comes in! We offer unsecured business loans ranging from $5,000 to $100,000, and recently opened the avenue for secured loans ranging from $100,000 to $200,000. The application process is simple, quick, and you can receive your funds in 24 hours.
For more information, call us on 1300 00 LUMI or visit our homepage.
For more information to help you run a successful small business, check out the following articles:
- Small Business Marketing Tips to Boost Your Holiday Sales
- Tips for Surviving Your First Year in Business
- Working Capital: What is it and Why Does Your Small Business Need it?
- 25 Ways to Grow Your Small Business Fast