In fact, there are several options for business owners looking to borrow money to improve their business.
If you run a sole trader business and want to learn more about your financing options, keep reading as we unpack sole trader business loans, including how to access them if you’ve got a bad credit history.
Finance One Commercial is a non-bank lender who works with sole traders with bad credit to give them an opportunity to access finance.
Contact the team to find out if we can help you access a bad credit business loan to give your business the boost it needs.
Apply Online NowWhy use sole trader business loans?
For some sole traders, the cost of running a business may be too high to cover the purchase of business vehicles or assets from cash flow alone. Cash flow is particularly tight for businesses that are just getting off the ground or building their customer base. For cyclical industries or for those with long invoicing periods, it can feel like they’re stuck in limbo — they want to scale their business to increase revenue but can’t do so until they have more equipment.
Sole trader business loans are designed for sole traders, meaning that they aren’t forced to satisfy the same criteria as personal loans. Whether you need a car for your business or require specific equipment like video cameras or drones, paying outright may be impossible. A sole trader business loan could be the solution.
Other uses for sole trader business loans
Aside from acquiring vehicles or upgrading equipment, many small business owners use sole trader business loans to take advantage of growth opportunities for their business. Some of the ways that a small business loan can be utilised include:
- Funding expansion plans.
- Launching new products.
- Rolling out marketing campaigns.
- Purchasing stock.
- Immediately improving cash flow to cover expenses.
How does a sole trader business loan work?
Unsecured business loans are generally uncommon, as most business loans are secured against property or an asset of some sort.
Sole trader loans are generally a secured loan, meaning that a property or equipment is used as collateral to help provide security to the lender if you’re unable to repay the loan amount.
Different loan products will come with different available loan amounts. Traditional lenders such as banks and credit unions may offer different loan amounts or loan terms than alternative lenders who specialise in small business finance.
At Finance One Commercial, we offer a range of sole trader loans between $8,000 - $150,000!*
Call us today on 1800 346 663 to find out how we may be able to help you or apply online now!
Apply Online NowYou can choose how long to take your small business loan over. At Finance One, we offer loan terms between three and seven years for our range of sole trader finance options.
Good to know:
Many lenders lock you in for a fixed period, however, at Finance One, we do not penalise you for repaying your loan early!
Getting a sole trader loan with a bad credit history
How to access a bad credit business loan
Before you look to compare your business loan options, it’s important to remember that not all lenders specialise in bad credit business loans. By accessing a business lending specialist that specialises in bad credit business loans, you give your business the best chance of accessing the finance it needs to get ahead.
Finance One Commercial is a non-bank lender who works with sole traders with bad credit to give them an opportunity to access finance. Contact the team to find out if we can help you access a bad credit business loan to give your business the boost it needs.
Apply Online NowFrequently asked questions about sole trader loans
How do I know what my business credit score is?
Before applying for finance and having a credit check run on your business, you can use an online service to check your business credit score. If this is your first time borrowing money using your Australian Business Number (ABN), it’s likely that your score will be low, as there’s no borrowing history.
All hard credit enquiries will show on your credit file, which is why it’s important to be certain before you apply for any form of finance. Multiple enquiries can reflect negatively on your credit score.
Is it hard to get a business loan?
There is no denying that an existing business may find it more straightforward to access business finance, as they have a trading history and have likely borrowed money before. However, by accessing specialist lenders such as Finance One Commercial, getting a small business loan doesn’t have to be hard.
Are business credit cards a good alternative to getting a loan?
Getting a business credit card can be a tempting alternative to taking out a business loan, however, credit cards for businesses work similarly to personal credit cards, with high interest rates and fees attached. Also, as credit cards are unsecured, it can be tricky to be approved.
Can I use a personal loan for my business?
It is possible to use the funds from a personal loan for your business needs. However, this would typically be an unsecured loan (as you may not be able to use business assets as security for a personal loan). This means that you’d be relying on your personal credit score to support the loan application.
Bear in mind: if your business needs to close, you’ll still need to repay the personal loan as per your loan agreement.
Finance One Commercial can help you...
Contact the team to find out if we can help you access a bad credit business loan to give your business the boost it needs.
Apply Online Now*Loans between $75,000 – $150,000 must be property backed.
Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
