Small business finance

Small business finance

There are rules around business finance that are different from personal finance. Your financing options depends on the stage of your business. If you have just started a business, then lenders will limit your options, and those that are willing to provide finance will want your assets for security. Once you’ve been in business for more than two years your financing options increase, however even then there are rules that will define your success. Bizally can help you better understand your options and help you prepare everything you need to reduce the frustrations and time required while increasing your chances for success. Before Bizally helps you start, it’s important that you understand a little more about small business finance.

As a small business owner, there are primarily two main types of business finance: upfront loans and lines of credit/overdrafts.

Upfront loans

Upfront loans are fully drawn loans where the entire amount is provided upfront. This type of loan usually has lower costs but also less flexibility. Your business may require upfront loans to help fund a new business venture or to buy equipment for your existing business. With upfront loans, financiers are looking for security and evidence of your ability to make ongoing payments. Bizally can help you assess your current suitability for an upfront loan and help you prepare all the documentation.

Line of credit/overdrafts

A ‘line of credit’ or ‘overdraft’ are loans that may be used when your business funding needs fluctuate. This type of finance usually has higher costs, which are paid only when you access the funds. Many small businesses use this type of finance to smooth out the bumps of cashflow on seasonal businesses, project-based work or slow-paying customers. ‘Line of credit’ or ‘overdrafts’ can also be useful when you need to spend money upfront on stock that may be sold over a longer-term (e.g. Christmas stock, fashion, lean manufacturing).

The importance of getting it right the first time

You may think you have everything together to approach a lender, however, if you are like most small businesses, you need help from experts like Bizally to be successful. And it’s important to be successful the first time, as every time you fail in accessing finance it goes onto a record that can be viewed by other lenders.

How Bizally helps you prepare for financing

Financing for small business is tricky. You may think you have a great business model, or that your business is already a success. Lenders can have a different view. When preparing to apply for business finance, you need to consider the following:

Your requirements and needs

What type of finance is right for your business?

Borrowing enough

How much money will you need to borrow? Have you allowed enough for contingencies?


How long will it take to get the money? How long will you need the money for?


How much you can afford to repay?

Having a realistic understanding of timing

In your business planning, you need to have a realistic understanding of how long it will take to gain finance. You need to factor in the time it takes to prepare documentation, as well as the application and approval process.

Bizally can help you develop a realistic understanding of the process and the possible time constraints. They can also advise you on how far out to start the planning process based on your individual business needs.