Calculate your financial needs
Before diving into the process of searching for loans, it’s essential to understand your financial needs. This crucial step allows you to evaluate your options and determine what will best suit your business goals.
While many businesses default to seeking off-the-shelf loans, it’s important to explore alternative options that may be more suitable. Keeping an open mind and thinking holistically about the benefits and financial needs is key.
Consider whether you require a short-term fix or a long-term solution to stabilise your cash flow.
By considering all these factors and more, you can make informed decisions that will benefit your business in the long run.
Remember, the end game starts with understanding your financial needs from the beginning.
How is business loan eligibility calculated?
Lenders typically consider the following factors when determining business loan eligibility:
Your credit score
A good credit score is essential for getting approved for a business loan. Lenders want to make sure that you have a history of repaying your debts on time.
Your business’s financial health
Lenders will also look at your business’s financial statements to see how well it’s doing. They want to make sure that your business has a positive cash flow and that you’re able to repay the loan.
The amount of money you’re asking for
The amount of money you’re asking for will also affect your chances of getting approved. Lenders are more likely to approve smaller loans than larger loans.
The purpose of the loan
Lenders will also want to know what you’re going to use the loan for. If you’re using the loan to expand your business or purchase new equipment, you’re more likely to get approved than if you’re using the loan to cover personal expenses.
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How to use a business loan eligibility calculator?
Numerous online loan calculators offer estimates for generic business loans, but they often overlook individual circumstances and rely on average rates. At Fifo Capital, we take a different approach:
How we assess eligibility
We provide customised solutions designed specifically for your business needs.
We consider a wide range of factors beyond credit scores and financial statements. Our aim is to understand your unique circumstances and provide transparent guidance on your eligibility.
To be eligible for funding, we require the following criteria:
- A registered Australian business with an active ABN or ACN
- A minimum annual turnover of $1M
- Business has been operating for at least 12 months
Factors that may affect your eligibility
We also take the following factors into account when assessing eligibility:
- Your business’s financial health
- Cash flow and revenue trends
- Industry and market conditions
- Collateral and assets
- Credit history
By focusing on these factors, we can offer tailored financing options that align with your business requirements and increase your chances of approval.
A holistic approach to lending
We’re inclusive in our eligibility requirements, considering a range of factors beyond just credit scores and financial statements. We won’t waste your time if we can’t help, and our experts provide clear information to determine eligibility. Our streamlined process can get you an indicative offer in just 24 hours. be approved, you save valuable time and energy.Speak to a lending specialist
Why is business loan eligibility important?
Understanding your business loan eligibility is crucial for Australian SMEs. Here’s why:
Save time & energy
Knowing your eligibility helps you determine if you’re a suitable candidate for a loan. By avoiding applications for which you’re unlikely to be approved, you save valuable time and energy.
If you know you’re a good risk, you can use this knowledge to your advantage during loan negotiations. A strong eligibility profile can help you secure a lower interest rate.
Being aware of your eligibility allows you to plan ahead. If you anticipate the need for a loan in the future, you can take proactive steps to improve your credit score and enhance your business’s financial health.
How to compare business loan options?
Once you determine your eligibility, it’s crucial to compare various loan options to find the most suitable one for your business.
Consider factors like interest rates, loan terms, flexibility, and appropriateness to your business, as well as associated fees and whether the loan can be considered off-balance sheet or as new debt. Conducting a thorough evaluation of these aspects will enable you to make an informed decision that aligns with your specific requirements.
Keep in mind that your business finance options should align with your business goals. Different funding needs call for different solutions.
Talk to a lending specialist
Tips for improving eligibility
If you discover that you are currently ineligible for a business loan or you wish to improve your standing to negotiate better terms with a lender, there are strategies you can employ to improve your eligibility:
Strengthen your credit score
Pay your bills on time, reduce outstanding debt, and resolve any credit issues to improve your creditworthiness.
Boost your business financials
Focus on increasing your revenue, managing expenses effectively, and demonstrating positive cash flow to showcase the financial stability of your business.
Provide collateral or guarantees
Offering collateral or personal guarantees can help mitigate the lender’s risk and increase your chances of loan approval.
Build a solid business plan
Present a comprehensive business plan that outlines your goals, strategies, and financial projections. This demonstrates your commitment to success and can instill confidence in lenders.
Establish a relationship with lenders
Cultivate relationships with lenders by engaging with them regularly, attending industry events, and exploring partnership opportunities. Building a rapport can enhance your credibility and improve your chances of securing funding.
Frequently asked questions
Fifo Capital offers personalised financing solutions to support your business’s growth and cash flow needs. Our experienced team will work closely with you to understand your specific requirements and provide tailored funding options.
This depends on how technical the funding requirement is. If you have a straight forward funding need and the right information, we can get you an indicative (pre-approved) offer in 24 hours. Once in place, you can access same-day funding within 4 hours, giving you the agility to move quickly and achieve your business goals.
You can go from application to approved and funded within a week for funding requests up to $500K.For larger funding needs between $500K-$2M, we work to establish the necessary arrangements to power up your cash flow, which may take a little longer but the results are worth it.
Fifo Capital offers funding options up to $2 million. The specific loan amount will be determined based on your business’s financials, requirements, and our assessment of your needs.
Generally, you’ll need:
A registered Australian business with an active ABN or ACN
A minimum annual turnover of $1M
Business operating for at least 12 months
We’re inclusive in our eligibility requirements, considering a range of factors beyond just credit scores and financial statements. We won’t waste your time if we can’t help, and our experts provide clear information to determine eligibility. Our streamlined process can get you an indicative offer in just 24 hours.
Getting started is simple. Reach out to our team by completing a an enquiry form or giving us a call.
We will guide you through the process, answer any questions you may have, and assist you in finding the right financing solution for your business.
Yes, we work with businesses across various industries. However, it’s important to note that from time to time, we may face limitations in working with certain industries due to marketing conditions and associated risks.
Our team has extensive expertise in understanding the unique challenges and opportunities specific to different sectors.
We will carefully assess the feasibility and potential risks involved in working with your industry, and tailor our solutions to meet your specific requirements.
Our goal is to help you achieve success while mitigating any potential challenges that may arise.
Other resources you may find useful
Want more? Check out our blog, it's full of how-to resources and guides to help you better manage your business finances.
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