10 considerations before opening a cafe
Got big dreams for your business but need some extra funds to make them a reality? A business loan is a great way to secure additional finance to kick those dreams into gear.
Tyro Business Loan
What’s the purpose of a business loan?
It enables business owners (whether start-up or established) to have access to a lump sum of money that they can use to advance their operations, induce cash flow, or stimulate growth. Common uses for business lending include purchasing real estate, inventory and equipment, conducting upgrades, and increasing working capital (the money used to manage day-to-day operations).
Things to consider before taking out a business loan
There are two types of business loans to choose from—secured or unsecured. A secured loan requires an asset to be provided for security if you’re unable to pay it back (think property, inventory, vehicles, or accounts receivable).
An unsecured loan, on the other hand, looks at the strength and cash flow of your business as security instead of physical assets.
On top of security, a business loan will differ in amount, term, and interest rate, so make sure to do your research and compare options, to find one that’s suitable for your business.
What are the benefits of a business loan?
1. Make business projects happen
Access to extra money means you can fund the business projects you’ve been busy conjuring up, or that have been on the back burner while you work out how to bring them to life.
Whether the projects are down the strategic, operational, or recurring route, having the means to make them happen can really help you get your business to where you want it to be.
Strategic projects, which are focused on achieving a high-level business strategy, may include marketing measures to reach new audiences, re-evaluating customer/client needs to better fulfil them, and deploying human resources to strengthen your business’s people and culture.
Operational and recurring projects, while not tied to overall strategy, can help you meet a specific business objective such as upgrading software to the latest version.
2. Spend the way you want
A business loan gives you the convenience of borrowing money without selling a percentage of your business’s ownership to investors. This means you will maintain full control over how you spend your money, having the freedom to use it however you like.
Not having to pass decisions by someone else has many advantages, including speeding up your business projects, staying true to your mission and vision, and reaping more of the rewards.
3. Generate cash flow
It’s not uncommon for businesses to experience seasonal lulls; however, if not managed properly, they can hurt your cash flow. With a business loan at the helm, you can alleviate seasonal lulls to keep your business ticking away until things pick up again. Business borrowing in this sense may look like contributing to payroll, purchasing new inventory to sell, or even investing in a marketing campaign to help boost business.
While a business loan can provide short-term working capital to help bridge a funding gap, or respond to an unforeseen situation, it can also be beneficial for long-term investment.
Remember, as long as you pay your loan back, you can use it how you like.
Tyro Business Loan
At Tyro, we’re proud to offer our very own unsecured business loan, to help businesses achieve their business goals. With a Tyro Business Loan, you can access up to $350,0001. The ability to check your eligibility via the Tyro App makes it an easy and convenient way to access funds for your business—fast.
Benefits of a Tyro Business Loan include:
- Fast funds – these are deposited into a fee-free Tyro Bank Account in less than 60 seconds, or within a few business days to your linked external bank account
- Repay as you trade – repayments are made by nominating a percentage of your daily EFTPOS and/or eCommerce takings, meaning repayments rise and fall in line with your cash flow, providing flexibility during slower periods (subject to minimum repayments)
- Simple pricing with no hidden charges – there’s just one fee, disclosed up front, which means you know exactly how much your loan will cost upfront and don’t pay a dollar more
- Lending at your fingertips – manage your loan easily in the Tyro App – from checking out your borrowing capacity, customising your loan, and finalising in just a few steps
Want to learn more about the Tyro Business Loan? Head here.
A business loan can help you fuel business growth—reaping rewards now and into the future. Don’t just choose any business loan though; take the time to investigate the different options to figure out which one suits your situation, and will help you achieve your goals, best.
Get started with Tyro
Tyro loans are subject to Tyro’s eligibility and credit criteria. A personal guarantee is required. Other conditions may apply.