Types of small Business Financing

Start-up Financing - Several banks offer funds for jump starting a small business for entrepreneurs. The loan proceeds can be used to buy tools, materials, and equipments needed to operate the business.

Business Growth Financing - Entrepreneurs who have already established a small business and want to expand operations can get this type of financing. For businesses that need to expand production with new equipment, open new stores to reach more markets, this is the loan for them.

Inventory Financing - This type of loan uses your business' inventory stock as collateral or security for the loan. Businesses can purchase raw materials for production, aiding in supplies management so that you can effectively meet demand for your products.

Motor Vehicle Financing - If your business requires transportation of goods and equipment, this loan will help the business acquire a vehicle for freight deliveries. Most Australian banks provide both vehicle lease and purchase options to their small business clients.

Equipment and Plant Tools Financing- A small business eventually encounters the need to upgrade equipment and production machines used in manufacture; this type of financing assists the entrepreneur in renting higher production capacity equipment or even buying 2nd hand machines so he can keep his small business growing.

Business Property Financing- Small business owners eventually need to expand their work areas or find new property space for storage and distribution of products. A lot of financial institutions can easily handle mortgages for commercial spaces. Most offer high flexibility in terms of payment and loan period.

Trade Financing - A small business may engage in domestic trading, import or export and need financing to facilitate these operations. The Australian government provides partnership opportunities with commercial banks to assist small businesses engaged in trading goods. Trade financing may be more substantial than the traditional business loan.