Home – New Forums Money matters Can a sole trader get a personal/business loan?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #1242652
    Shazz059
    Participant
    • Total posts: 1
    Up
    0
    ::

    Hi, I’m new here, on behalf of my son who has his own business as a screenprinter and also as a content creator. He has an online store for his own brand as well. The business has been his sole income for around 6-7 years, and has grown a fair bit in that time. He lives and works out of a rented factory premises, and is now in a position to grow the business but unable to get a loan. His credit rating is very good. Last year’s gross income was $145,000.
    His own bank is not currently offering personal loans. NAB said flat out no, based on his credit rating.
    Does anyone have any experience, or advice, on where to go from here?
    Thank you.

    #1242657
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::

    Hi And Welcome to Flying Solo It is great to have you!

    Thank you for joining our community and posting.

    It’s a difficult one because the NAB is probably representative of the other banks (but not necessarily).

    It sounds like he has done fantastically well for himself but banks have their own criteria around what is and what is not credit worthy. Most finance has got tougher to obtain not easier over the last 10 years.

    And with online businesses, “disrupting” traditional business models that banks used to routinely provide finance for, it can seem insurmountable.

    Worth exploring are secondary and online lenders but a lot of research and due diligence is recommended and a preparedness to accept worse terms than banks may offer.

    My banker suggested I apply for a “renovation loan” for my house because the business I ended up buying was not in, itself credit worthy but a combination of my paid-off house and my wife’s income was enough.

    Otherwise, seeking funds from the 3 F’s is not uncommon. Forgive the crudeness of the term but it stands for Friends, Family or Fools.

    Good luck and keep us posted.

    Cheers
    ~Paul

    #1243174
    Draconic
    Participant
    • Total posts: 1
    Up
    0
    ::

    Hi there! As a sole trader, it is possible to apply for a personal business loan to help finance your business. However, keep in mind that personal loans typically have higher interest rates and shorter repayment terms compared to traditional business loans.

    When applying for a personal business loan, you will need to provide documentation such as your business plan, financial statements, and personal credit score. Additionally, lenders may require collateral, such as personal assets or a personal guarantee, to secure the loan.

    It’s important to research and compare different loan options to find the best fit for your business needs. Consider reaching out to various lenders, including banks and online lenders, to compare interest rates, terms, and fees. Remember to read the fine print and understand the terms of the loan before signing any agreements. Best of luck!

    #1244014
    C&B Finance
    Participant
    • Total posts: 1
    Up
    0
    ::

    Hi Shazz059.
    Lenders criteria can include credit history (even if squeaky clean) and further for business purposes it is unlikely they will offer a personal loan. It would be a business loan.
    From the sounds of it he is on the right track, sounds like a good business.
    There is an option to use 6 months ABN history and bank statements to obtain finance.
    If you would like any further information would be happy to help.
    Laurence.

    About us

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.