Once a year, this comic store owner needs a massive amount of extra stock. He explains why a NAB Quickbiz Loan is ideal.
There are times in any business when you need a fast cash injection to fund your business growth. NAB looked at the main reasons small business seek finance and designed the unsecured NAB QuickBiz loan to meet their needs.
Below are the top seven reasons businesses seek finance, plus how a NAB QuickBiz loan could work in the different circumstances. We’ve also included other types of NAB business loans that can work in different circumstances.
1. Managing cash flow
Business owners understand that cash flow is king. When a sudden expense comes in or a customer is late paying, your whole cash flow can be put under pressure. In fact, the Australian Securities and Investments Commission report on business insolvency in 2015-2016 reported that 46.8% of businesses cited a ‘serious shortage of working capital’ as the main cause for small business insolvency1.
An overdraft facility is often part and parcel of managing your business from the beginning. It’s a practical way to help you manage your cash flow, say if you have seasonal income fluctuations, are waiting for payments or you want flexible repayment terms.
Many businesses find a NAB QuickBiz loan useful for smoothing cash flow or funding one-off events that will grow their business, like investing in the stock, staff or equipment needed to meet a large order
2. Business growth
Sudden growth can challenge your finances just as much as no growth.
When a big order comes in or a new client signs up, you often have to grow quickly to meet demand. That can mean accessing extra funds quickly to invest in staff, equipment, office space or stock.
A NAB QuickBiz loan is a fast, unsecured option for financing sudden growth. The extra business can help pay off the loan while your regular cash flow ticks over as normal.
3. Stock and equipment finance
Buying extra stock and equipment to meet an unexpected order often needs to happen in a matter of days. You might need an extra digger, a large stock delivery or an overhaul of the office servers. Whether you’re expanding, upgrading or repairing, acting quickly can ensure you keep clients and meet orders.
A NAB QuickBiz loan can give you up to $50K fast and requires no security. This makes it a great financing option for purchases that will allow you to fulfil a contract.
NAB Equipment Finance loans offer finance up to $500K and provide options to purchase single or multiple vehicles and equipment. Some businesses may prefer to lease equipment while others prefer to purchase outright.
NAB Business Options loans can work if you need between $20K to up to $1M. Large growth plans and investments that will take time to show up as profit, such as setting up an interstate office, are best funded this way.
4. Marketing & promotion expenses
Marketing campaigns can help raise awareness of your business and generate sales. You may want to raise your company’s profile with an updated Facebook page that includes a call back request form or start implementing a Google AdWords strategy. It’s worth noting that Australians are frequent users of social media:
- 6 in 10 regularly use Facebook
- 1 in 2 use YouTube
- 1 in 5 use Instagram
- 1 in 6 use Snapchat.2
Whatever marketing you do, it can stretch the cash flow of a small business in the short term. A NAB QuickBiz loan could work especially well for promotional campaigns where you expect a relatively fast return on your investment.
5. Hiring staff and training
Growth spirts can be as awkward for businesses as for teenagers. Suddenly, you need more staff or to train existing staff on new equipment or processes. Taking out a loan to pay for growth is a leap. But as NAB’s February 2017 Business Conditions and Confidence trend report suggests, business conditions are actually much stronger than many businesses believe.3
A NAB QuickBiz loan can be a great option to tide things over until the new workforce is paying for itself.
As businesses grow, they may need to move out of the spare room and into larger premises. Or it might be important to move closer to your customers or suppliers.
A NAB QuickBiz loan can be a good way to finance the move, especially if it leads to a return on investment quickly. Increasing your overdraft or taking out a NAB Business Options loan might be better if you need more than $50K or longer to repay.
7. Unexpected events
Sometimes, even the best laid plans don’t work out for a business. This can lead to sudden financial challenges for even the best managed businesses.
A NAB QuickBiz loan could work for one-off problems such as a late payer or the replacement of equipment while you wait for an insurance payment. It could also tide you over while you restructure.
An overdraft might be better if you need to fund frequent unexpected expenses or cash shortfalls.
Why choose a NAB QuickBiz loan for your business?
The NAB QuickBiz loan is an unsecured loan that provides businesses with extra cash fast. You apply online, get approval instantly and your funds are in your account and ready to use 1 business day after we receive all the paperwork from you.
To find out more and to apply for a NAB QuickBiz loan online, visit nab.com.au/quickbiz
If you want help choosing the best finance option for your circumstances, talk to your NAB Business Banker.
1. 16-436MR ASIC reports on corporate insolvencies 2015-16
3. NAB’s February 2017 Business Conditions and Confidence
Please consider if the products mentioned are right for you by reading the product terms and conditions, available from NAB, before making any decisions.