Unsecured Small Business Loans in Australia

There are numerous small business owners who are looking for quick business loans and we provide them with that. The generic size of loan that small businesses apply for and easily qualify for is in the vicinity of $15 thousand to $25 thousand, however there are those who require over a $100 thousand and do get it equally easily. We do request all those who apply for the funding to be sure about their requirements.

Banks do not fund small businesses easily any more, and the reason for this is because they find small businesses to be risky investments. As a result of this, their qualification criteria are extremely stringent and due to this over 90% of all small business loan applications are rejected by the banks. We do provide small businesses with the small business funding that they require, and small businesses make up over 75% of all businesses in Australia on an average. The reason we can confidently state that we provide funding to small businesses is because our qualification criteria are very different from those of the banks. Mentioned below here are our qualification criteria, and based on these any small business owner can ascertain for themselves whether they qualify for the funding or not.

The business should be over 12 months old

The business owner should not be in bankruptcy

The business gross income needs to be at least $10 thousand a month or over that

The business needs to be a running business

These are the very simple criteria that we have, which are nothing like the criteria of the banks. Based on these almost every small business can apply for and receive the funding they require. Additional benefits of our simple qualification criteria are also mentioned below here. Credit scores are not a concern with us, and we often work with bad credit scores, the reason for this is because credit scores are not a part of our qualification criteria. Typically, we work with credit scores that are in the low to mid 500s, and we do fund them as well. Banks on the other hand do actually require credit scores that are at least 700s to work with a loan application.

The processing time frames that we have are also very quick, and typically we can provide you with the small business loans within a week to ten days tops. At the earliest we can provide you with the funding within 48 to 72 hours. Banks again cannot do this because of their extensive requirement of documents related to everything and stringent qualification criteria. Another great feature that we have for small business is the fact that we do not require collateral. Collateral is something that we do not require and its not part of our qualification criteria as well. This means that all our funding is unsecured. For more information related to the business capital, contact us.

Our funding team is available from Monday to Friday regular work hours. Also, if you wish to fill in the details on your own, click on the ‘apply now’ tab and fill in your details there which is the same thing.

How to Choose a Consumer Credit Counseling Agency?

There are numerous people struggling with debts and are unable to consolidate these debts into a home loan or an unsecured loan and are looking for help to come out of this mess. If you are the one who is seeking help, then you must consider taking help from consumer credit counseling agency. They have plenty of people who are willing to discuss about your debt problem and helping you to solve it without facing any further problem. But, due to so many agencies open round it became difficult to choose the right and helpful agency. That is why, here we try to explore few possible steps that help you to avoid the cheats and select the right counseling form for you.

Helpful Advice That Helps In Selecting The Right Counseling Agency

Look For A Non-Profit Agency

Selecting the non profit agency is the right choice at it helps in minimizing the cost of getting the credit counseling service. There are lots of non profit counseling agencies available that can provide you the needed assistance. But be careful while selecting the agency because some of them are holding non profit agency status has not legitimacy and there is possibility that they charge high fee that burden your pocket. There are numbers of legal non–profit agencies available that charges the nominal fee to give you the advice and necessary assistance.

Select The Agency With A Long History

Looking for agency having long history will give you assurance that it is legitimate and won’t go anywhere in between of your debt management plan. So try to find the agency that is working from at least 5 to 10 years and have the record to help many people.

Seek An Accredited Agency

Your selected agency should be accredited by the Financial Counselling Australia (FCA) is the peak body for financial counsellors in Australia.

Make Sure Agency Have Certified Counselors

Try to make sure that the counselors of the agency are professionals and have been certified by an independent organization. Checking about the counselors is important in order to make sure that you are working with a person who knows how to handle bad debts.

Things To Remember

Remember that you are going to provide your personal financial information to the counseling agency. So, it is your duty to check out the legality and reputation of the agency before taking any decision.

Speak to the National Debt Helpline

Call the National Debt Helpline on 1800 007 007. Their professional financial counsellors provide free and confidential advice. The helpline is open from 9:30 am to 4:30 pm, Monday to Friday.

You can also visit the National Debt Helpline website. It has step-by-step guides explaining how to fix common debt problems.

Most Common Ways That People Fall Into Personal Bankruptcy

Main Causes of Bankruptcy in Australia

Personal bankruptcy is a fact of life in a capitalist economy. The ups and downs of the economy cause many households to enjoy prosperity before a rapid decline. In an era where most people live paycheck to paycheck, debt has become increasingly difficult to manage. Many people have little choice but to gain a fresh start through bankruptcy. Business failure, high-interest credit card and personal loan debt, and lack of insurance are three of the most common ways people fall into bankruptcy in Australia.

Business Failure

Without question, Business Failure tops the list. Many people wonder how to prevent falling into business-related bankruptcy, but unfortunately due to the risks and market pressures in Australia most businesses do not last more than 2 years. There are a few precautions people can take before starting out in a new business such as talk with your Accountant and prepare a Budget and a SWOT Analysis.

Credit Card or Personal Loan Unsecured Debt

For anyone who has struggled to pay off high interest credit cards or personal loans, it comes as no surprise that unsecured debt plays a major part in most bankruptcies. Often, people with high medical bills also have large credit card debt. When an illness strains the budget, credit cards often become the stop gap. If the debtor then cannot generate the income needed to pay off the cards, bankruptcy follows.

In an era where the majority of Australians live paycheck to paycheck, unexpected expenses or job losses often result in high interest credit card debt. The increased monthly obligations often result in additional financial strain, creating a vicious cycle of delinquencies. Once accounts fall behind, penalty interest rates and fees are added on, creating a situation where debt becomes unmanageable.

If you are in deep credit card debt, experts recommend considering a debt consolidation loan before applying for bankruptcy. This should be the last resort if you lack the ability to pay off the debt, have no or limited nonexempt assets, are being harassed by bill collectors, face creditor lawsuits, or are subject to wage garnishments.

No insurance

Lack of health insurance, auto insurance, home insurance, or renters insurance can trigger bankruptcy. For example, if you are found at fault for an auto accident and have no insurance, a court may subject you to ruinous wage garnishments. If a house fire erupted and you had no home insurance, the costs of repairs, on top of still owing the mortgage, could easily result in a loss of all your assets, leaving you with no choice but bankruptcy.

Conclusion

There is no way to fully insulate yourself from going bankrupt. In a topsy-turvy economy, many people find themselves stuck with unmanageable debt. The best protection is solid financial planning. By having an adequate emergency savings fund and insurance, you are better prepared to weather financial disasters and far more likely to stay out of bankruptcy.

Why is a Good Credit Rating Important in Australia?

When you lodge an application for a home loan, the first thing your bank will do is to check your credit score. A credit score or credit history is basically a result derived from the analysis of a person’s credit files.

When you lodged your application for a home loan, the bank will evaluate you in terms of your ability to repay the loan on time based on servicing and previous history. For this, they do a complete analysis of your income, on-going mortgages, assets and take into account many other factors to assess you. This will provide the banks and other non bank lenders a clear picture of your risk status. If you try to borrow money with bad credit from a Bank, it is very likely that your application will be rejected.

Reasons for Bad Credit History

A person may end up with a bad credit score due to a number of reasons. Laziness in paying the bills, poor financial situation and overspending are some of the major causes of bad credit. Different lenders have distinct methods of assessing a person’s creditworthiness. A bank can deny the application of an individual requesting to borrow money with a bad score as per bank’s policies. To improve your credit score, you can talk to a debt consolidation firm for easy repayment options.

Home Loans with Bad Credit

Having bad credit does not disqualify you obtaining a home loan. You can still borrow money with bad score with the help of a Non Conforming Lender.

A Non Conforming Lender will analyse your financial records and grant you loan on certain terms and conditions.

The applicant applying for the loan would generally need to pay a higher interest rate and costs than an individual who has a good credit rating.

If you own a home you can borrow money with poor credit to consolidate your debts, since your asset will be used as collateral. This is called a secured loan. If you do not own an asset, then you still may qualify for an unsecured loan which is subjected to specific conditions.