Sourcing funding can cause worry lines for small business owners, as Sarndra (Sandy) Urwin discovered when she wanted to expand the retail offering within her small business. That’s why she partnered with Prospa, which she now calls the best anti-wrinkle cream around.
Hear more about Sandy’s small business story:
All her life, Sandy has had a firm belief that “nature knows best”, and this became a foundational value for her business Animal Natural Health Centre, based in Orewa, New Zealand.
“I’ve always felt that prevention is better than cure,” she says.
Sandy left her work as a nurse to pursue her passions for natural healthcare and working with animals, while also filling what she saw as a gap in the market.
“There was nobody offering choices in healthcare for animals, so I thought, ‘Why aren’t we doing this?’,” she says.
She opened Animal Natural Health Centre in 2008, offering both consultation services and natural products for animals, many of which are handmade in house under her White Tui label.
“My purpose and vision for the business was to offer people a choice in animal healthcare. I really wanted to take a holistic approach,” she says.
Offering more to customers
As her customer base grew, Sandy felt it was time to expand the retail side of the business to meet the growing demand for her natural animal healthcare products, including sunburn creams, pain relief, allergy treatments and sprays to ease anxiety or stress caused by noise.
“We had a very limited range of stock because we didn’t have the capital to invest in the new products that our customers were looking for,” she says.
At one point, Sandy considered selling part of the business to an investor in order to gain more capital. But in her view, that would mean abandoning some of the reasons why she began Animal Natural Health Centre in the first place.
“It would have been quite heartbreaking, actually,” she says.
As many small business owners know, you can’t buy trust. Sandy was concerned that the reputation she had spent years building within the community and with her customers “wouldn’t have gone along with the sale”.
“We didn’t want to compromise,” Sandy says.
A win-win situation
Instead, Sandy turned to Prospa for a small business loan, which she felt would enable her to achieve her business goals without having to make trade-offs.
From the very start, Sandy felt Prospa was the right partner for her small business.
“When I first contacted Prospa, I was impressed by their enthusiasm and interest. They really wanted to listen to my story, and they were just as enthusiastic as I am about my business,” she says.
“Working with banks can be like pushing water uphill with a straw, whereas Prospa was quick in their actions. You know exactly where you stand with them at any moment of the day, and I like that.”
She says Prospa’s attention to detail, prompt customer service and general willingness to find a win-win situation gave her a lot of confidence.
“With a small business loan, we’ve been able to expand our range of products and give our customers better service, and equally important, I no longer have the thought that I need to sell,” she says.
A focus on the customer
Now that Sandy isn’t worried about cash flow, she’s looking forward to her future plans for the business, especially expanding her education and outreach programs. She is currently looking to develop course material and protocols for natural animal healthcare.
She also wants to share her passion for holistic animal health with the wider community, and in doing so, empower people to make more informed choices about what’s right for their pet.
“The customers are what drives you and your business – they are my favourite part of being a small business owner,” she says – and that includes the animals and their humans.
“Small businesses do have the opportunity to make huge changes in our communities, and thanks to Prospa, we can keep doing that.”
A Prospa Small Business Loan has helped Sandy and Animal Natural Health Centre to:
Increase the variety and volume of stock available for customers.
See an increase in monthly turnover.
Not compromise on quality or her vision for the business by selling a stake to an investor.
Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help keep your small business moving. Talk to one of our small business finance specialists on 0800 005 797 to discuss your options, or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
DNA 1st Solution owner Anita Vaafusuaga didn’t want cash flow issues to cause her to miss a fantastic opportunity to grow. So, she used a Prospa Small Business Loan to overcome the problems caused by late-paying customers and buy space to nurture a program that helps South Auckland youth.
Hear more about DNA 1st Solution’s story:
Anita and DNA 1st Solution’s second calling
After spending 25 years of her life working for a manufacturing company – 13 on the factory floor and 12 as a warehouse supervisor – Anita leapt on an opportunity that presented itself.
In February 2012, by chance, she overheard her bosses saying they needed a product packing contractor. The idea sparked Anita into action, and she soon launched DNA 1st Solution, a packing and labelling business that prepares cosmetics and other products for shipping and sale.
Shipping and staffing
While packing is Anita’s main business, she uses her company to benefit the local community too. As part of their Kingfisher Program community outreach initiative, Anita employs young New Zealanders with little-to-no experience.
It’s a program that’s designed to give young people a start in life, and was something Anita launched in memory of her late husband, who loved to help his close friends and family. Twelve days after his death, a kingfisher bird came to her home, which is where the program’s name comes from.
“The most rewarding thing is the stories of the young people I hire, whether they’ve moved on to other things or they’re still with me,” says Niue-born Anita.
“We train them in the warehouse. From there, we see if they go into the packing part of the business. If not, we send them out skilled to work for other companies.”
Stop-and-go cash flow
Of course, for the Kingfisher Program to be successful, the business must be too.
“I tried a few times,” she says. “It takes too long. It’s too stressful. The questions they ask, the forms they want me to fill in.”
Then when an opportunity to grow the business by moving into a new warehousing facility presented itself in May 2019, Anita knew she couldn’t miss out.
She had a window of a week to complete the deal, so she called Prospa to take out a small business loan – and within seven days the company was in new premises.
“When the opportunity came about, we had to decide quickly, what do we do from here,” she says.
Fortunately, she had learned about Prospa’s 24-hour approval on Facebook.
“What I liked about Prospa when I applied for the loan was the speed,” Anita says. “Questions, done. On the spot decision. Finished.”
She also appreciates Prospa’s convenient small business loan repayment plan.
“My repayments are weekly and it’s for a year. I love that. I’m not going to be bound by that for 10 years or something.”
Cash flow is still an issue, but now it’s one that doesn’t impact the business.
“Right now, I’m waiting on $60,000 to be paid,” Anita says. “But because I’ve got the loan from Prospa as a buffer, I’m not worried.”
What’s next for DNA 1st Solution?
With the Prospa Small Business Loan, Anita has tripled DNA 1st Solution’s warehouse space, setting themselves up to expand their packing capability and the Kingfisher Program.
Anita plans to expand the Kingfisher Program to provide avenues for young Aucklanders to learn more about themselves and their interests.
She also has big plans for the business, including bringing the company’s services to Pacific Islands.
“I can’t wait to do what we have planned. I can’t wait to put it into action,” she says.
A Prospa Small Business Loan has helped DNA 1st Solution:
Triple available warehouse space.
Grow the Kingfisher Program and help more inexperienced Auckland youth.
Smooth out cash flow issues.
If you’re like Anita and want to seize an opportunity but don’t have the cash flow to do so, talk to Prospa about how a small business loan could help on 0800 005 797 or apply online.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Gorgeous You skin wound and scar management clinic owner and operator Francis Swart had been running her small business out of her home since 2013. But she was starting to experience growing pains. Thanks to a Prospa Small Business Loan, Francis was able to realise her dream of owning her own salon.
Francis’s Gorgeous You salon in Burswood, Auckland, offers a wide range of skin and beauty treatments, including facials and massages. But much of her passion lies in wound and scar management, and helping people of all ages feel comfortable in their own skin.
“You might not be able to ever get rid of a scar or wound completely, but we can manage it in such a way that, when you apply make-up over it, you won’t even see it,” she says. “Or if it’s a body scar, we can manage it to a point where you can look at it and not feel like, ‘Oh, I don’t want to look at that part of my body.'”
Experiencing growing pains
For a few years, Francis operated Gorgeous You out of her own home. That worked for a while, but it soon became time to expand.
“I used to work from home, and we got to a stage where my family really needed their home back,” she says.
“The only way to do that was to move the business out of the house and into premises where I can actually grow my business.”
Having her own premises was also a long-held dream for Francis.
“I’ve always had a home-based salon – while raising children it was just easier. And I would say to my husband, ‘When I’m big, I’m going to own my own salon.'”
The scars of bank rejection
But finding funding from traditional lenders to realise that dream was tough, partly because Francis and her husband didn’t own property.
“They would ask, ‘Are you a property owner?’ When we said, ‘No,’ they would say, ‘Sorry, we can’t help you.'”
One day, Francis and her husband stumbled across Prospa on social media. After enquiring about a Prospa Small Business Loan, the couple heard back within 24 hours.
Francis appreciated that Prospa was easy to deal with, quick, and willing to work with her on a suitable repayment plan.
“Prospa gave us the option to make a weekly repayment,” Francis says. “As a small business owner, I can manage a smaller weekly repayment much better than a huge monthly repayment.”
Dreams do come true
Thanks to a small business loan, Francis has been able to achieve her dream of opening her own salon in Auckland, and fitting out the space.
“The premises were quite old and dilapidated,” she says. “I needed to freshen them up and make it a beautiful space where people wanted to come, where it’s nice, cosy and inviting. That’s what Prospa helped me do.”
Hear more about Gorgeous You’s story:
What’s next for Gorgeous You?
Now that she’s in her own space, Francis is determined to keep her small business moving forward.
While Francis hopes to handle the marketing for Gorgeous You, she would like to employ another therapist to help with treatments.
“I just feel so blessed,” she says. “I said to my husband, ‘After all these years, I got to where I’m supposed to be.'”
It seems that with a bit of backing and hard work, dreams can come true.
A Prospa Small Business Loan has helped Gorgeous You:
Purchase a new salon.
Renovate her new premises.
Hire a business coach.
If you have a small business dream that you’d like to turn into reality, talk to Prospa about how a small business loan could help on 0800 005 797 or apply online.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Small business owners often use their own money or personal finance to grow their operation. Business funding, however, can be a more attractive alternative – for many reasons.
When you launch your own small business, your business and personal lives can easily become intertwined, as well as your finances. If additional funds are needed, small business owners often take out personal finance rather than business finance, as it may seem easier to access. But this is not always the case, with new alternative lenders providing fast and easy business finance solutions.
The risks of putting personal finance into your business
Accessing personal finance to fund your business can be fraught with danger.
“The biggest risk of injecting personal finance into your business is that you’re not going to derive any income, and you’re not going to be able to pay yourself back,” says Melissa Bailey, head of operations at Kiwitax, which has been working with small businesses in New Zealand for over 13 years.
“If you’ve obtained personal debt to be able to inject the business with the funds, then if the business isn’t going to derive an income to be able to service that personal debt, then you’ll be personally liable for that debt.”
Keeping your business finances separate
Ideally, says Bailey, any debt a business takes on should be in the name of the business, rather than personal debt in the name of you as an individual.
“It’s always best to have the separate entity and keep the finances separate,” she says. “If you’ve got a company, trust or partnership, then it would be best to have that finance under the name of that entity. It’s always tidier to have separate entities with their own separate liabilities.”
As well as being tidier and easier to manage at tax time, a good history of repaying debt can add value to a business in the longer term, as you’re building a strong credit history.
“If you have had finance and you have kept up with the repayments, then the creditworthiness of your business will increase,” Bailey says.
Taking on good debt
The word debt usually has negative connotations. However, Bailey explains it’s important to understand the difference between good debt and bad debt.
“Business is all about generating income,” she says. “Often you need to purchase assets, and the aim is to generate or derive a greater income from those assets directly. Or you may need to purchase stock in order to generate revenue,” she says.
“People don’t often have a big chunk of funds sitting aside to buy assets, and it’s not always a good idea to use that money in the bank account to pay for an asset anyway, because an asset is not claimable in the year in which you purchase it due to asset depreciation rules.
“Finance is really good for enabling the business to get assets from which to derive income – that’s good debt, it’s income-producing. That’s a real plus about finance.
“It’s the ability to buy assets without affecting your liquidity.”
Taking out business finance can also be tax-efficient, says Bailey, in that interest can be claimed as a deduction for the business.
“Any finance is, of course, going to generate interest charges,” she says. “However, all of those interest charges are claimable in the entity.”
If you’re looking to expand your business, buy new equipment or simply manage your cash flow during a quiet period, find out how a Prospa Small Business Loan could help. Get in touch on 0800 005 797 to discuss your options or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Cash flow is important to the success of any small business – this you know. So it pays to keep it front of mind in the good times, and the bad, especially when you have loan repayments to consider. Keep a close eye on it by:
Issuing invoices on time – the earlier you invoice, the earlier you’ll get paid.
Regularly updating all other accounting and reporting – this will ensure you’ll notice any issues sooner and have them fixed faster.
Building a cash reserve, if possible – it’s always good to have something to fall back on should the unexpected happen. It will also stand you in good stead during seasonal slumps.
Projecting your cash flow well in advance – a cash flow calculator tool will be your best friend in this.
Get ahead of the game at peak times
So, business is booming? Great news. And while it may be tempting to celebrate, now’s the ideal time to consider paying more towards your loan. After all, it’s a move that will save you a significant sum of money down the track.
Let’s take Alison, for example. She’s a restaurant owner, has a $50,000 small business loan that she’s paying off at a rate of $600/week over 1 year and 9 months. Her business is doing well and she could pay more, but she’s just cruising at the agreed rate.
Alex, a mobile handyman, has a $50,000 business loan that he’s paying off at a rate of $600/week over 1 year and 9 months. His business is booming and he decides to add $200 to his repayments. This saves him $1,000 and he pays the loan off 5 months early.
Note: These are examples only and general in nature.
Keep a strong credit score
Good credit makes life much easier for a small business owner. Having a great credit report will open up more options when it comes to accessing finance, and has the potential to save you money in repayments.
Build and maintain a good credit score by:
Scheduling reminders to ensure bills are paid on time.
Limiting repayments by consolidating your credit cards.
Keeping a close eye on your credit cards by not hitting the limit.
Going over credit card bills with a fine-tooth comb so you can address any errors.
If your business is ready to take the next step, talk to Prospa today on 0800 005 797 or apply online for a small business loan.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Alex Grant and his mother Iris Posa, co-owners of Baker & Son Catering – and the power behind motorbike cafe Grind On – developed a devoted following that presented an exciting opportunity for growth. But with that opportunity comes additional cost, and the team needed extra capital to keep up with the rapid pace of success.
After navigating tangled red tape from traditional lenders, Alex and Iris found a Prospa Small Business Loan to deliver what they needed to keep them firing on all cylinders.
Revved up for success
Alex is a coffee maestro and a veteran of the Auckland cafe scene. His mum, Iris, is a kitchen wizard, whipping up dishes that have become local favourites around Takapuna, a coastal suburb on Auckland’s North Shore.
“My mum is known on the street for her cooking, and I’m known for my coffee,” Alex says. “It’s old-school cooking done well.”
Alex already owned the Grind On café, and in 2016, the pair decided to combine their powers and start their own catering company, too. Baker & Son was born.
The company supplies Alex’s Grind On cafe with amazing food, but they also serve up treats for government groups, schools and other organisations. The cafe is run out of The Garage, a motorbike shop that attracts riders and fans from around the area.
A rapid rise
With Grind On as a sturdy foundation, it didn’t take Alex and Iris long to get up to speed running their catering business. The two are well-known within the community.
So it might come as little surprise that, within its first three years, Baker & Son Catering experienced substantial growth.
But with growth and opportunity come costs that can sneak up on a small business owner. To keep up with demand, Alex and Iris needed to make key upgrades to their infrastructure that would allow them to keep doing what they do best.
“My mother wanted to invest in more equipment for the commercial kitchen,” Alex says.
They looked for crucial funding in the form of a small business loan that could help them improve the business. But finding help proved more difficult than expected.
Shifting into gear
Baker & Son had succeeded in building a loyal base of customers. But finding a small business loan that would help them grow was not. At least not at first.
“We were having a few issues finding a bank that would look after us,” Alex says. “When we were initially looking at finance we approached a number of personal banks. We just found the red tape was incredibly difficult, and we were unable to get the finance that we required.”
Alex and Iris were forced to carve out valuable time to deal with the monotonous, frustrating task of securing financial assistance.
One day, Iris heard an ad on the radio for Prospa. It sounded exactly like what they needed.
Filling up the tank with a small business loan
After hearing the ad, Iris was able to get in touch with a member of the Prospa team the same day.
“She sent an email through and literally within three hours somebody from Prospa had phoned back,” Alex says.
Things only took off from there, as the team at Prospa helped Alex and Iris determine which funding options suited Baker & Son. They settled on a small business loan that would help nurture the catering company as it continued to progress.
“We found the whole process was very straightforward and the staff were amazing to deal with,” Alex says.
Hear more about Baker & Son’s story:
What’s next for Baker & Son?
A Prospa Small Business Loan has turned out to be a vital cog in the Baker & Son catering machine, allowing Alex and Iris to supercharge their business quickly and efficiently.
“We found dealing with Prospa, the whole process was incredibly easy,” Alex says. “I have recommended Prospa to other colleagues of mine that have small businesses to let them know there is someone that makes things easy.”
Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help with your next step. Talk to one of our business lending specialists on 0800 005 797 to discuss your options, or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
But first, here are six questions to ask yourself before taking on finance.
What’s the small business loan for?
While your business is something you’re likely emotionally invested in, it’s vital to remain objective about any opportunity that emerges. It is business after all. So before deciding whether a small business loan is a good option, be crystal clear on what you’re intending on using the money for and what positive impact it will have on your business.
How much finance do you need?
If your financial projections suggest your business will benefit from a cash injection, then the next step is to work out how much you’ll need. Remember to factor in any costs associated with what you’re using the loan for. For example, if you intend to buy a new vehicle or a new piece of equipment, it’s going to need insurance.
What’s your current position?
It’s one thing to know how much is in the bank today – it’s another to have an accurate picture of what’s coming up. Make sure your cash flow forecast is on point, all knowns are accounted for, and you are confident you can make the regular repayments, even in quiet periods.
How’s your credit history?
If you’re thinking about applying for a small business loan, it’s a good idea to check your credit report, so you can correct any mistakes, as this will impact your loan application. There are three credit reporting companies in New Zealand: Centrix, illion and Equifax. The New Zealand Government provides a handy guide on the best way to check your credit report.
Is there other funding that could help?
Is a small business loan definitely the right option? For example, if you’re a Kiwi business looking at a loan for R&D, you could be eligible for business growth funding through Callaghan Innovation – New Zealand’s innovation agency. Worth a look!
Make it easy to get a ‘yes’
At Prospa, it’s our mission to keep small business moving, providing small business loans of $5,000 to $150,000. To apply, all you need is identification (i.e. a valid Driver’s Licence) and some information about your business (including your trading time, ownership details and an active New Zealand Business Number). Note: to qualify for a Prospa Small Business Loan, you need to have been trading for at least six months, with a minimum monthly turnover of $6,000.
It takes 10 minutes to fill in the online form and we can often provide a response within one hour, as long as you’ve applied during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online.
So, the clearer the information you provide to us about your business, the easier it is for us to say ‘yes’.
Discover how a small business loan could help your business grow. Find out more or contact us on 0800 005 797.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
When a sudden increase in enquiries led to rapid growth, Susy Egneus of Bodyworkz sought out a Prospa Small Business Loan to hire more staff and service the growing needs of customers across New Zealand.
Helping create stress-free workplaces
Wellness in the workplace has become a key focus of businesses across the world. For most, the focus has been on increasing the wellness of their employees in order to keep them physically and mentally fit and healthy – and therefore more productive.
Bodyworkz, however, was formed in 2010 to offer workplaces a simple and easy way of improving their employees’ wellbeing – through on-site chair massage.
Initially offering the service to corporates in Auckland, Susy Egneus’s two-person business soon took off. Word of mouth referrals kept coming in, and the business grew into a network of fully trained massage therapists all over New Zealand.
Managing unexpected growth
In 2018, Bodyworkz saw interest in its services spike like never before, and the business needed to grow.
“Last year, we had a growth spurt in the business, and we had to change a lot of the things that we did, and we needed some help with cash flow,” Susy says. “We went to a lot of traditional lenders, but no one was particularly interested in giving us finance.”
Despite a solid business history and a long-term growth strategy backed up by the large number of enquiries, Susy wasn’t sure who to turn to in order to get the financial backing she needed. That was until she was referred to Prospa.
“One lender actually suggested that we contact Prospa.”
The application process: Quick and easy
After back and forth with traditional lenders who weren’t able to help, Susy was amazed at how simple and rewarding it was to deal with an alternative lender like Prospa.
“I was surprised how easy it was; how quick it was,” she says. “I didn’t have to wait. They were able to check me out and my funding was approved within hours.”
Because of the speed with which Susy received her small business loan, Bodyworkz was able to get started on hiring more massage therapists and reach out into the wider community.
“The finance that Prospa provided helped us take on more staff so we could manage the growth, take on more therapists and spread our brand a bit wider around New Zealand.”
Today, Bodyworkz has onsite massage teams in Auckland, Hamilton, Taurange, Wellington and Christchurch, while they have also done work in Dunedin, Timaru and Palmerston North.
Hear more about the Bodyworkz story:
Bodyworkz’s advice for other small business owners
When asked whether she would recommend other business owners turn to Prospa when they need quick funding to take advantage of unexpected growth, Susy answered with a resounding yes.
“They adapted to my business and listened to my business – what our needs were. I wouldn’t hesitate to recommend Prospa to any business owner out there that needs help with business growth.”
A Prospa Small Business Loan has helped Bodyworkz:
Grow its large roster of experienced massage therapists.
Manage cash flow during a period of rapid growth.
Spread its brand across the wider corporate network in New Zealand.
Whether it’s growing your business, funding an opportunity or covering cash flow, find out how a Prospa Small Business Loan can help with your next move.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Looking for a small business loan to grow your business? Have you considered an alternative lender?
There are various stages in the life of a business when additional funds may be needed to help the business grow – whether it’s to invest in new equipment or machinery, rent new and larger premises or simply to assist with cash flow during a quiet period.
But the prospect of obtaining finance through traditional means can be daunting – countless hours on the phone and in meetings with the bank and reams of paperwork to complete. The time commitment alone can put you off.
That’s where alternative lenders step in – often providing an intuitive online application process, with minimal paperwork and a fast approval process. As an alternative lender, Prospa’s application process indeed involves no paperwork and there’s the potential to have funds – anything from $5000 to $150,000 – in your account within 24 hours.
Alternative lenders are agile
By primarily operating online, alternative lenders have flipped the traditional borrowing process on its head. This enables us to focus on speed, flexibility and personal service – it keeps us agile, making us an ideal match for the agile environment of small business.
What’s more, rather than focusing on the business owner’s personal assets, we kick-start the lending process by assessing a business’s overall health and growth potential.
Alternative lenders are fast
Alternative lenders typically offer a quick online application process. When working with Prospa, for example, you’ll typically receive a same day response and, if successful, the funds could be in your account in as little as 24 hours.
For loans up to $100,000, no asset security is required to access the money, however Prospa does require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans of over $100,000, Prospa generally takes a personal guarantee and security in the form of a charge over assets.
Alternative lenders understand you
Alternative lenders inherently understand the dynamics and pressures that come with running a small business – because they are one. That common ground means we have a deep understanding of your challenges and your goals.
The result? Better, faster outcomes, and more personal service.
If you’re looking to expand your business, buy new equipment or simply manage your cash flow during a quiet period, find out how Prospa can help. Get in touch with one of our small business lending specialists on 0800 005 797 to discuss your options or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Running a small business comes with many ups and downs, as well as many occasions that may require a bit more cash than you have at your fingertips.
Here are six scenarios where a small business loan may be just what you need to keep your small business moving.
1. You need more space
If your employees are using the table in the kitchen as a workstation, or your office is now doubling up as a stock room, you could probably do with a little more space. But just because you’re ready for expansion doesn’t mean you necessarily have the cash on hand to make it happen. Whether the answer is a refit, full-on renovation or even a move to new business premises, a small business loan could provide quick funds to expand the operation.
Remember to calculate the financial benefit when deciding whether to go ahead or not. For example, will the renovation or refit enable you to sell more stock or take on more clients? Or will it just make room for Molly the office dog’s bed? Speak to your financial advisor who can help you crunch the numbers.
2. You need more stock
Buying products that will enable you to provide a service and improve your offering is a crucial part of doing business. Every business needs an up-to-date inventory, and if you’re a seasonal business, you’ll want all your stock in place before peak sales periods. If your turnover is dependent on the stock you’re carrying, but you don’t have the capital to invest, then a small business loan could be worth considering to bridge the gap.
3. Opportunity knocks
Many opportunities emerge for small businesses, and knowing which ones to chase, and which ones to pass by, is a skill in itself. If you have completed your due diligence and believe an opportunity is worth grabbing, but you don’t have the cash flow on-hand to do so, a small business loan could be the answer. It provides a simple cash lump sum that puts business owners in control of how they respond to opportunities.
4. You need to recruit to grow
Small business owners often wear many hats, but sooner or later juggling your supply channel, bookkeeping, marketing, customer service and tea-making all by yourself can take its toll. Ultimately, if you’re going to grow your business, you will need time to give the operation the attention it deserves. Employing staff can free you up to do just that. If there’s a clear connection between the hiring decision and an increase in revenue, then a small business loan could make good business sense.
5. Your premises need a makeover
First impressions count a lot in business, and if you’re a cafe with shabby furniture, you may be losing customers based purely on your interiors. Alternatively, if you’re an office-based operation, your poor ergonomic set up may be negatively affecting your employees’ productivity and/or your ability to attract star candidates. A small business loan could help give your small business the face-lift it needs.
6. You need more customers
Build it and they will come? Not quite. You could have the best product and service in the world, but if no one knows about it, you’ll not sell a bean. An investment in marketing is critical to attract customers. A small business loan could help you fund a promotion or marketing campaign to acquire new customers.
If your business needs funds for opportunity, growth or cash flow support, get in touch with one of our small business lending specialists on 0800 005 797 to discuss your options, or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
