4 February 2020

How a Tyro business loan could help you grow

Is your business ready to hit the ground running in 2020? Use the start of the new decade as the kick you need to give your business a makeover.

Whether it’s a commercial-grade cold press juicer for your hip and healthy café, some sleek new shelving for your homewares store, or perhaps some new carpet in the waiting room of your medical practice, now’s the time to act.

Question is, what’s a good investment? And, more importantly, how do you pay for it?

If it ain’t broke …

Before you go out and buy up big, take a moment to reflect on the past 12 months.

If you had a cracker of a year and business is humming, then maybe you don’t need to do anything right now. There’s no value in changing things just for the sake of it.

… But if something is broken

If there were quiet periods, unhappy customers, or you feel there’s room for improvement, then now’s the time to act. With the holiday period now over, take some time to understand what’s broken and how to fix it.

Trawl your Facebook and Insta for customer feedback or, if there’s none, ask some of your regulars. If your sales software’s smart enough, you should also be able to dive into the data to see what sold and when. On the flip side, see when things went quiet and work out why. 

Then, take a good look around you. Are things broken? Or out of warranty? Anything missing (hello, cold press juicer) that could add value to your business or bring more customers through the door?

And what about your street appeal? If your storefront’s looking a little tired, then it might just take a lick of paint and some simple tweaks to your window display to have customers thinking, “Hey, that looks interesting”.

Do your research

Back to that cold press juicer (yep, our new year’s resolution involves a lot of green juices). Do you take out a $3,000 business loan to buy a heavy-duty machine that juices carrots like they’re watermelon? Or would something half the price do the job?

Whatever you’re planning to do, get multiple quotes so you know what you’re up against. If trades are involved, use reputable suppliers or get a recommendation from someone you trust.

Don’t forget to factor in the time to get stuff done. If it’s the carpet in your waiting room, can it get done after hours so your patients aren’t disturbed?

Looking for some extra funding?

With your big purchase/reno/redesign ready to go, how are you going to pay for it? A smart way for businesses to manage bigger, one-off purchases is through a business loan. Look for a loan that flexes to meet the needs of your business.

With Tyro, for example, you can take out a business loan and pay it back as a percentage of your daily takings from your EFTPOS and/or eCommerce facilities. By doing this, your repayments rise and fall in line with your cash flow, subject to minimum repayments being made over a period of 90 days. It makes things a lot less stressful when business is a little quiet.

Tyro has a business loan calculator you can play with to see how long it’s estimated to take for you to pay back a loan. This same calculator also spits out a loan fee – there’s just one fee you know up front and it’s paid down over the life of the loan. That amount changes depending on the loan amount and the percentage of daily takings that you select.

Don’t forget to claim it

Buying a new juicer will not only make your business better, but as long as it falls within ATO guidelines, then you can claim it as a business expense too.

When it comes to what you can claim, the ATO has three golden rules:

1. The expense must be for your business, not for private use
2. If the expense is for a mix of business and private use, you can only claim the portion that is used for your business
3. You must have records to prove it

Brush up on the rules for deductions, too. If you’re not sure, then a quick chat with your accountant should help to clarify exactly what you can claim and when.

How to get a business loan

Make the most of the momentum and energy that comes with the start of a new year to do the things you dreamed about last year. To get cracking, talk to Tyro today about a business loan.

Tyro loans are subject to Tyro’s eligibility and credit criteria. A personal guarantee is required. Other conditions may apply.

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