On the other hand, when used wisely and well, business debt is possibly the most valuable item in the toolbox.

Although, in some cases, levels of fear and apprehension might rise at the very mention of debt, when business operators take on debt with knowledge and confident planning, what is perceived as risk can be viewed as significant opportunity.

In fact, three out of every four small businesses in Australia report having used external financing to promote growth. And for good reason.

Why use debt?

The greater availability of capital means greater opportunity. It can be the difference between a smart move and a missed chance. In practical terms, it means having the capacity to accept a substantial order, rather than turning away business for lack of immediate funds.

In a competitive market, a business must explore and exploit every opportunity to attract and keep clients. But there are costs involved. How best to meet them?

Initially, the short-term benefits of taking on equity investors bearing cash might seem attractive. But what about the longer term costs, such as the loss of profit share and the relinquishing of at least some control to investors?

Add to that the complex process of finding appropriate investors, and the difficulty in formulating agreements, and debt starts to look like the better option.

 In most cases, business can claim a tax deduction related to interest payments on business loans. This swings the balance further in favour of debt, and is another advantage, compared with raising capital through investors.

Debt can, in fact, cost less than the alternative.

It’s also a way to build relationships with lending institutions, some of which provide advisors who will be involved in business growth planning, and be available to offer assistance in future projects.

Debt for growth

There are inherent dangers in taking on debt unwisely. Wisdom lies in strategic planning, and making sure, as far as possible, that business will benefit from borrowed funds.

And the key word is growth.

Borrowing funds to pay staff wages and avoid the struggle of meeting day-to-day expenses may not spell growth. Unless it is a short-term measure, and there are plans or expectations of positive change, this move can spell danger instead. Taking out a loan in order to make cosmetic improvements, based solely on a vague hope business might improve is not wisdom.

When debt is a growth producing strategy, with projected benefits that further the goals a business has articulated, then it is definitely a wise choice.

For example:

• An investment in more staff, with better and more versatile skill sets, or in staff training with calculated long-term pay-off. That’s good business.
• The purchase of new facilities and equipment, or spending on improvements and upgrades that have a strong likelihood of producing growth.
• Expansion or improvement of current offerings – to attract new clients, or protect an existing client base from the competition. Remember it’s less expensive to keep loyal clients than to acquire new ones.
•  Using debt is also a ‘put your money where your mouth is’ approach that shows confidence. Confidence is contagious. And confident clients are usually loyal clients.

Before taking on debt, businesses need to ask the smart, but really quite simple, questions:

• How will debt help business growth?
• How will debt open up future possibilities?

The bottom line

Think of debt as an investment in the business.

As with any other investment, it’s essential to do a benefit-cost analysis. Calculate benefits, increased revenue, and tax deductions, then subtract expenses, including fees and repayments of principle and interest.  In any plans to take on business debt, there are basic steps to take:

• Compare and check interest rates; calculate costs over the entire duration of the loan.
• Consider the timing of repayments; check whether there is flexibility, should circumstances change.
• Check and confirm all applicable fees.
• Find out how long the application process will take, and how soon the funds will be available; a valuable opportunity calls for a quick response.
• Remember too that major lenders are not the only option, especially if a business is in start-up or early growth phase.

After considering all the factors is debt a good investment? How does the ROI look?

When debt is under control, rather than taking control, it’s a smart tool that lets a business ‘get down to business’.

GetCapital is Australia’s leading non-bank SME lender. Talk to their dedicated Relationship Managers about a range of innovative finance solutions, including Flexible Term Loans, International Trade Finance and Vehicle Finance. 

There’s a common misconception that taking out a business loan is for small businesses that are just starting off or even businesses that are at risk of going under – and this couldn’t be further from the truth. The reality is that growing businesses need access to capital, and often, they need it fast. A booming business doesn’t stop for anything, or anyone, even if your bank account isn’t quite ready. This is why more and more successful businesses are turning to fast and flexible loans to accelerate their growth.

In fact, 74% of small businesses in Australia have used financing to grow and evolve – It might be time to join them at the top.

Here are five ways that smart businesses are using business capital to increase profits in times of growth:

1. Equipment financing

As a business owner, you’re probably adept at making smart investments – It’s what got you to where you are in the first place! If inadequate or failing equipment is stifling your growth, it might be time to make another smart investment and upgrade. By choosing to rely on business finance, instead of reaching for personal funds or your credit card, you’re not putting a cap on your growth. Instead, you’re creating a relationship with an expert business lender who can act as your adviser and provide the flexibility you need to make smart investments, not uninformed or restricted ones. Whatever the equipment you need, having the right tools can often be the difference between success, or failing to expand.

2. Renovations/ upgrades

Renovating or upgrading your business space can not only affect the way your business looks but can also make a significant impact on the customer experience, the energy efficiency of operation, or even your staff performance. While it costs money to make these changes, the investment to renovate can have long-lasting effects. You might be surprised what a new coat of paint, upgraded ventilation, or a floor remodel could make to your business.

3. Purchase orders

In an ideal world, your small business would have the capacity to fulfill whatever demands come in – no matter how big or small. Unfortunately, as you know, business doesn’t work quite like that, and one big order can send you scrambling for funds. In fact, 28% of small businesses have had orders go unfulfilled or delayed because of insufficient credit. And with orders having a short lifespan – you can’t exactly make your customer wait for the five-six weeks it takes to get a standard loan – you might think that turning down the job is your only option. With Get Capital’s 24-hour loan approval process, there’s absolutely no reason to be stymied by a lack of funding. We understand that fast orders need fast funding.

4. Hire new employees

Having a team of qualified employees has a significant effect on the success of your business. After all, the way your service or product is perceived is often a direct result of what your team do or do not do. Whether it is making sure you have enough staff to manage demand and ensure quality customer service or having enough diversity in your team to produce results that lead to satisfied and continued custom, an adequately staffed business is essential.  Additionally, bringing new employees into the business can introduce new talent and ideas that could ultimately lead to business growth. So, if you’re still thinking that you don’t need that extra set of hands around the job site… maybe think again.

5. Launch a brand new product or service

You already have a loyal customer base, things are looking good, and sales are up on last year, but you have noticed that competition is increasing. If you don’t employ future thinking you could be left behind like so many other businesses before you. A new product in an existing product line or an ad-on service might be just what you need to keep those old customers loyal and keep up to date with where the market is moving. Another benefit, targeting already loyal customers means spending less effort and cost to acquire new ones.

Learning how to utilise business finance to grow your business strategically might be one of the smartest things you can learn.

The bottom line? Don’t let a lack of funding ever hold you back.

Michael Bate, head of retail at Colliers International, predicts that the launch will spell doom for any companies not able to keep their web traffic competitive. He likens the event to the arrival of Google, which dispelled a significant amount of other search engines.

However, Hamish Conway of Sell Global has a contrasting viewpoint. As the director of the Amazon e-commerce advisors company, he advises SMEs not to fear the launch of Amazon Australia, and instead to leverage it. He explains that Amazon Australia should be viewed less as a competitor and more as a business enabler.

Conway strongly believes that the country has been given an opportunity, instead of the blow of bad news that the majority of SMEs appear to be taking it as. If used well, he states that it will “enhance and not hinder” SMEs’ sales and profit margins.

At present, more products are sold on Amazon through third-party vendors than the platform sells itself. This advocates that SMEs should be moving to get their products listed on the site as well. With Amazon Australia set to launch in time for Black Friday, they need to have this done as soon as possible.

Having worked from both sides of the Amazon platform, Conway speaks from personal experience. He has had great success in selling his own products as well as other brands on the platform, across Europe, the UK and the USA.

He aims to oust the belief that Amazon is specifically for low-price products. Some SMEs fear that selling on the platform would cause them to lose a degree of control over the products. According to Conway, the opposite applies in reality.

Amazon provides SMEs with an additional sales channel; one that allows high accuracy of reporting and a greater degree of control. Correctly managed, it generates an almost-certain increase in profit.

Amazon is not new to Australian sellers, many having been listed as vendors on the site for many years. They key difference is that they are now able to sell goods locally as well, without only having the option for international shipping. Further to that, Australians ordering from Amazon had previously had no option but to accept the high shipping costs and extended delivery schedules. With the strategically-placed Melbourne warehouse, this has become a headache of the past.

According to a local Amazon-registered-seller, SMEs need to be ready for business from the afternoon of Thursday the 23^rd of November. At this point, the company is looking to roll out an internal testing phase ahead of their launch.

Although The Guardian and the Financial Times suggest the pre-Black Friday launch will benefit customers more than local retailers, savvy business-owners who jump on the bandwagon have nothing to fear.

Follow this link to register as a retailer on Amazon Australia: https://www.amazon.com.au/gp/au_sell.html/ref=nav_au_sell/358-6906878-9236925

If you aren’t convinced, below are the top five reasons why selling on Amazon is the next step towards the growth of your business.

1. Reach New Markets

It is no secret that Australian goods are perceived as high quality in the rest of the world. Take advantage of these new opportunities to launch your products in new countries and markets.

2. Skip Warehousing

As Amazon has FBA (Fulfilment by Amazon) centres in over 100 countries, international shipping is far easier than you might have expected. In most cases, you will be able to bypass individual order fulfilment entirely.

3. Get Your Brand Out There

The increased exposure from global Amazon sales may be worth more to your business than the sales themselves. As Australia has products that cannot be bought anywhere else in the world, the more you ship overseas, the more orders you will get.

4. Do Your Research

If you haven’t already done so, take the time to read up on Amazon Australia as much as possible. Avoid opinion pieces as much as you can, and stick to factual information. The more you know about the company and the processes, the easier and quicker it will be for you to get started.

5. Understand the Market

When selling to other Australians, beat international products with your reduced shipping rates and delivery times. When selling internationally, be sure to highlight the uniqueness and quality of the products you have available.

By following these steps, SMEs should have nothing to fear. A positive mindset and an eye for an opportunity will go a long way in keeping a step ahead of the market.

GetCapital offer fast and flexible business finance solutions for Australian Small Businesses – whether it’s a Flexible Term Loan for any business purpose, International Trade Finance/International Line of Credit or even our Flexible Equipment and Vehicle Finance, GetCapital could help. We’ve partnered with thousands of Australian SMEs to help them with their business finance needs.

To find out more, click the button below or call us on 1300 249 649.

Regardless of the business you’re in, one universal rule applies. In order for it to be successful, you need customers. They are, and always have been, the key to your bottom line. Once you have gone through the exercise of ensuring all expenses are necessary and your business is performing as efficiently as possible, there are only two key ways to increase your profit margins:

1. Increase your client base
2. Increase your average profit per client

Both options are equally lucrative, in that they both bring more money into your business. However, one of them has the potential to outstrip the other in terms of effort, resources and time put in to make it work. It is for this reason that anyone involved in business has learnt (usually first-hand) that the best option is the second one. The most effective way to increase your average profit per client is through cross-selling. Simply put, this involves providing the client with different services, or even entirely different categories that you already have on offer. Clients that have worked with you once are more likely to work with you again than someone who has never worked with you at all. For this reason, not only is it easier to service them with additional products, but the cost of the lead to sale is cut in half. Two transactions between two clients will typically always cost more than two transactions for one client. Clients who have chosen to work with you on multiple products are also less likely to go elsewhere, which increases your client retention rates and can position you as their subject matter expert. With the benefits of cross-selling established, the following points will outline the best ways to incorporate it into your own business.

Determine which products or product-groups you will cross-sell

It is highly important that all your customers are aware of all the products or services you have available. You may find that some customers only buy specific products because they are simply unaware that you can meet their other needs at the same time. Once you have educated your customers on your product offerings, sell them the benefit of working with you on additional products as well. If you have found your client a great home loan rate, can you offer them a business overdraft as well?

Determine who the provider of the products or services will be

If you do not have multiple products on offer or the capacity to cross-sell between them, you may need to form a professional alliance with a person or company that can does. Many companies offer commissions for clients referred to them. If you are currently offering unsecured business loans, seek out local companies which offer vehicle finance, equipment finance, trade finance or any other similar products that you do not offer yourself. Approach those companies with the intention of forming an agreement on a monetary value or percentage commission for each client referred.

Use a solution-based (as opposed to product-based) approach with clients

The first place many businesses go wrong is in using a product-based approach. Although there can be some success with it, discussing lenders, rates and borrowing capacity does not put the client in the right frame of mind for cross-selling. In that perspective, it is hugely limiting when taking the bigger picture into consideration. A solution-based approach is a discussion about the clients’ holistic needs and wants, and your ability to help them achieve their goals. Naturally, this will involve other products. As long as you have put the right steps in place internally or partnered with the right people, you are right on track to cross-sell the meeting away. Assisting clients with various products and services can be seen as becoming “their broker”. You will find that you are the center of it all, which is exactly where you want to be.

You need to remain in control

As long as you have the upper hand in a conversation, you can move it in any direction you wish. As someone looking to increase profit margins through diversifying your income, while simultaneously meeting additional needs of your clients, this direction should always be cross-selling. Every client you encounter will have financial goals. As an expert in your field, helping clients meet them will endear you to them while increasing your bottom line. It is not them that know the best and most effective ways to achieve their dreams, but you. For this reason, you should never wait for them to ask. Take initiative and sell them everything they need in order to get where they need to be. With cross-selling forming win-win situations all round, it is curious that more companies don’t include it in their day-to-day strategies and profit planning. If you want your business to become the go-to provider in your field, cross-selling shouldn’t be an option, it should be a necessity.

GetCapital are a leading non-banking lender, specialising in commercial finance and business loans for Australian SMEs. Since 2013, GetCapital have helped thousands of Australian SMEs with Flexible, Fair and Fast Working Capital and Commercial finance solutions, lending over $100,000,000 to Australian Small Businesses.

To find out more about GetCapital and our commercial finance solutions, call us on 1300 249 649, or visit us online at www.getcapital.com.au

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Here are 5 simple tips to help make sure that your business makes the most of the accelerated opportunities these holidays.

Getting your strategy ready

20 to 40 per cent of annual sales happen during November and December, so it’s important to capitalise on those months. It’s also important to reach customers across digital channels, so consider launching omnichannel, seasonal campaigns. Whether this is by implementing microsites or additional online sales channels such as facebook marketplace, etsy, ebay or elsewhere online, there could be an opportunity to diversify your sales funnel online.

Pay Per Click Advertising

If your business uses Google Adwords (or other Pay Per Click ads), it’s important to make sure that you have your scheduling aligned with your trading hours. Prevent the risk of a bad customer experience by ensuring that you’re not taking new enquiries when you’re unable to service them, and that you’re not offering promotions on out of stock SKUs.

Social Media

Schedule regular posts to promote products, communicate important events and dates and wish your clients happy holidays. Use social media to promote products and build goodwill with customers.

Website readiness

If you’re an online retailer, it’s important to check whether your website can handle an uplift in traffic, if your online store has correct stock and inventory numbers, and whether there are any parts of your check-out process that can be additionally optimised. Manage these simple tasks early to best ensure that your customers have an enjoyable experience when visiting your online store.

Online returns policy

Again, for online retailers, it’s important to ensure that your website has all legally required and recommended terms and conditions both available and easily accessible by your customers. If your returns scale relative to your sales uplift, this will make it easy to stay ahead of any potential disputes or complaints.

GetCapital offer fast and flexible business finance solutions for Australian Small Businesses – whether it’s a Flexible Term Loan for any business purpose, International Trade Finance/International Line of Credit or even our Flexible Equipment and Vehicle Finance, GetCapital could help. We’ve partnered with thousands of Australian SMEs to help them with their business finance needs.

To find out more, click the button below or call us on 1300 249 649.

This week, Andrew Beckett, GetCapital’s Broker Relationship Manager for Western Australia, talks about the recent trends he is seeing across the commercial finance market.

Andrew is seeing a lot of our Broker Partners referring clients for our International Line of Credit facility, which is a flexible facility that allows clients to draw down on demand, to fund international invoices. A substitute to a normal small business loan where cash is provided to a business, this facility works in conjunction with our Foreign Exchange partners, and offers better-than-banking rates on FX transfers.

If you are a broker and have clients who import stock, inventory or equipment, get in touch with Andrew and the team at GetCapital on 1300 249 649 and find out how this product could help.

The announcement comes off the back of record growth for GetCapital in the past 12 months.

“Patrick is one of the few individuals in Australia who has helped lead the transformation of a niche lending business into a large scale, global financial services firm. I’m really excited to have the benefit of Pat’s experience and knowledge as we embark on the next phase of GetCapital’s growth”, said GetCapital CEO Jamie Osborn. Patrick was previously Co-Group CEO of Pepper, which he joined in 2001. Patrick helped lead the business through its rapid growth,  international expansion and listing on the ASX. Pepper is today a diversified financial services business with over $50b in assets under management and 2000+ employees.

Commenting on the appointment, Jamie Osborn, GetCapital CEO said, “GetCapital today has a strong balance sheet, 70+ exceptional employees, and a market leading product range tailored to Australian SMEs. The next chapter in our journey will see considerable expansion of our business on all fronts. Patrick’s knowledge and experience is highly relevant to this next phase of our growth and we therefore see him as a valuable addition to the GetCapital team”.

“GetCapital has demonstrated over the last few years that their innovative approach to SME lending resonates strongly with partners, intermediaries and customers alike”, said Patrick. “The business is now well positioned to scale and I’m looking forward to working with the management team to help them achieve their future growth ambitions”.

Media Release – GetCapital – 17 October 2017

This week, the team at GetCapital & businessloans.com.au were contacted by a Commercial Finance Broker in Queensland, who was searching for a working capital solution for their client, a Furniture and Homewares Retailer.

Coming into the busy Christmas and holiday period, the client was looking for extra working capital to support them in investing in sourcing and stocking new product lines for their retail store.

With this information firmly in hand, the Broker worked with GetCapital to arrange a Flexible Term Loan that was best suited to the client’s requirements:

Client Profile:
Gold Coast, QLD based Furniture and Homewares retailer, in business for 9 years, with an average monthly turnover of $160,000.

What the Client needed:
$120,000 to research and purchase new stock lines ahead of their busiest seasonal trading period.

How GetCapital and businessloans.com.au helped:
GetCapital provided the client with a $120,000 Flexible Term Loan, to be repaid over 12 months. The client will also have the opportunity to redraw after 15 weeks, if they require additional funds.

How long did it take?
The Broker contacted GetCapital on Friday afternoon, submitted the completed application on Monday night, and the client had the loan funds deposited into their business banking account by Tuesday night.

GetCapital are a leading non-banking lender, specialising in commercial finance and business loans for Australian SMEs. Since 2013, GetCapital have helped thousands of Australian SMEs with Flexible, Fair and Fast Working Capital and Commercial finance solutions, lending over $100,000,000 to Australian Small Businesses.

To find out how easy it is to refer a client to GetCapital for commercial finance, call us on 1300 249 649, or email our Partners team – partners@getcapital.com.au.

This week. the team at GetCapital were contacted by a Sports Technology retailer, who were looking for a working capital solution to assist them with an accelerated growth period in their business.

Client Profile:
Melbourne Sports Technology retailer (& ecommerce), in business for 8 years, with an average monthly turnover of $95,000.

What the Client needed:
$80,000, to employ and onboard new team members without impacting their working capital reserve.

How GetCapital and businessloans.com.au helped:
GetCapital provided the client with an $82,000 Flexible Term Loan, to be repaid over 7 months. The client will also have the opportunity to redraw after 15 weeks, if they require additional funds.

How long did it take?
The client contacted GetCapital on Tuesday, submitted the application the same day, and received the funds directly to their business banking account on Thursday.

GetCapital are a leading non-banking lender, specialising in commercial finance and business loans for Australian SMEs. Since 2013, GetCapital have helped thousands of Australian SMEs with Flexible, Fair and Fast Working Capital and Commercial finance solutions, lending over $100,000,000 to Australian Small Businesses.

To find out more about GetCapital and our commercial finance solutions, call us on 1300 249 649, or visit us online at www.getcapital.com.au

On Monday. the team at GetCapital & businessloans.com.au were contacted by a Commercial Finance Broker in Sydney, who was looking for a working capital solution for their client, an Eastern Suburbs Cafe and Coffee Roaster.

The Cafe owner had reached out to their Finance Broker to assist them with finding a short-term working capital solution that would enable them to take advantage of acquiring a second retail location, at a discounted rate.

With this information firmly in hand, the Broker worked with GetCapital to arrange a Flexible Term Loan that was best suited to the client’s requirements:

Client Profile:
Sydney Cafe and Coffee Roaster, in business for 7 years, with an average monthly turnover of $140,000.

What the Client needed:
$100,000 to complete the purchase and fit-out of a new retail location, in Sydney’s Eastern Suburbs.

How GetCapital and businessloans.com.au helped:
businessloans.com.au provided the client with a $100,000 Flexible Term Loan, to be repaid over 12 months. The client will also have the opportunity to redraw after 15 weeks, if they require additional funds.

How long did it take?
The Broker contacted GetCapital on Monday, submitted the application on Tuesday, and the client had the loan funds deposited into their business banking account by Thursday, of the same week.

GetCapital are a leading non-banking lender, specialising in commercial finance and business loans for Australian SMEs. Since 2013, GetCapital have helped thousands of Australian SMEs with Flexible, Fair and Fast Working Capital and Commercial finance solutions, lending over $100,000,000 to Australian Small Businesses.

To find out how easy it is to refer a client to GetCapital for commercial finance, call us on 1300 249 649, or email our Partners team – partners@getcapital.com.au.