Do you have bad credit? Have you been wondering how to get a loan for business from ANZ? One of the most difficult things to achieve is getting a business loan with bad credit. This is especially so with the high street lenders.
Banks, in particular, are highly averse to risk and have come up with very strict lending criteria. In fact, they are so strict that most small businesses will fail to meet them. This makes it difficult for SMEs to secure loans.
Many people have no idea how to get a loan with a bad credit score. When you have a poor credit rating, the chances of getting a loan for SMEs is brought down to almost zero.
One of the main things that banks will look for before advancing a loan is the collateral that you have in your business. They also check the amount of capital.
Do not despair!
If you have bad credit, there is the option of taking an unsecured business loan.
What is an unsecured business loan?
Simply put, this is a type of loan where you don’t have to offer security in the form of assets in order to get the loan.
There are plenty of lenders who offer unsecured business loans and each has its own criteria and risk tolerance.
If you have bad credit but your business is doing well, you still have a good chance to get a loan for business from ANZ, one of the best lenders out there.
ANZ has been around for over 175 years and offers its services to clients not just in Australia and New Zealand. They are also in Europe, the Pacific region, the Middle East as well as the Americas.
By getting in contact with ANZ, you can sit down and agree on tailor-made business solutions that are designed to cater to your business needs. You can get a payment plan which is much more flexible and is able to match your budget and your individual situation.
What you will get with an ANZ business loan
If you’ve been thinking of expanding your business or adding equipment, the ANZ business loan can help you.
Most other lenders will offer strict lending rules and criteria. ANZ offers more personalized and flexible options. Businesses can choose between secured and unsecured loans.
The minimum loan amount
The minimum loan that you can apply for with ANZ is $10,000. Terms will depend on whether you prefer a fixed term or a variable term business loan.
With the fixed-term business loans, you can get up to 10 years of payment. The variable term loans, on the other hand, will offer you up to 15 years of payment.
Keep in mind that with the unsecured business loans, the interest is significantly higher compared to the secured loans.
Methods of payment
With ANZ business loans, you can also choose between paying the principal amount and the interest or opt for paying just the interest and a final balloon figure of 80% of the amount of the loan at the end of the term.
You also have the choice of paying the variable rate loans weekly, bi-weekly, monthly, monthly, quarterly, half-yearly, or yearly. As for the fixed-rate loans, you can pay monthly, quarterly, half-yearly or yearly.
Costs of getting a loan with ANZ
When applying for the loan, there are fees that you are going to have to pay.
- The loan approval fee
- A loan administration charge that will depend on how much money you apply for
- $300 Early repayment fee
- Renegotiate fee
- For the fix rate option, a locked rate fee of $600 plus a certain percentage of the loan
- Forward start fee
Even with your bad credit, there are a few criteria that you will need to meet in order to apply for a loan.
The first is you need to be at least 18 years old. You should also not have applied for bankruptcy before and you need to have registered with ABN or ACN.
How to increase the chances of getting a business loan with bad credit
ANZ may be one of the best options for securing your business loan with bad credit, but there are a few things that you can do to ensure you stand the best chance of acquiring the loan. Make sure that first, you understand your Equifax score.
Prepare your case
The first thing that you need to make sure of before you decide to get a loan for business from ANZ, is whether your business needs the loan in the first. If for example you are going through financial difficulty, and you want a loan to revive your business, you should keep in mind that a loan comes with extra costs.
Your business case should lay out in detail how you plan to use the loan for expansion or for support. Financial projections must be a part of your business case carefully stating the estimated amount of profit that you are expecting form injecting the cashback into the business.
Your business and revenue projections need to be realistic.
Note that if the funds are for growing your business, it will often take time to start seeing the profits and you will still need to pay for the loan and other costs such as warehouse costs.
A business loan may not always be the best thing and other important considerations that you will need to make include your tax and financial situation.
Have all supporting documents
Coupled with having a great business case, you will need to support it with documents. With your bad credit score, the lender will be certain to take a closer look at your previous business and trading history.
The documents should show that you can meet the minimum turnover by the lender.
You should also provide the business bank statements for the last 6 months at least.
Don’t forget the credit sales or merchant statements for the last 6 months to provide evidence of average sales levels. This allows the lender to determine your capacity to pay back the loan.
And lastly, you will need to show identification documents.
Once you have all the supporting documents, you are now in the best position to get a loan for business from ANZ. Go ahead and start the application process. At ANZ, you can either make a phone call, make an online inquiry or meet up with their business specialist.