Blog«Growing Business
Growing Business
Peter Nicholls - Trident Leasing
26 August 2018
9 August 2022
3.95 minutes

Is an unsecured business loan right for your business?

Do you want a line of credit that you won’t start paying for until you draw it down and that costs less than a credit card?

Then you could think about an unsecured business loans – this line of credit can sit there and you can use it as you wish. It doesn’t cost you anything to set it up at all, you don’t pay anything until you draw the money down. It is always cheaper than going out and getting a credit card.

Here’s how it works.

If it was a line of credit for, say, a person that’s setting up a new warehouse and they’re importing goods from overseas. Now, they’ll be using it to polish the concrete floor in the new place, they’ll be using it to set up all the partitions and all the offices and all the computers and everything there, so that’s two different amounts going out. Once they get all set up they’ll be using it for stock coming in.

Lets say we sat down and worked out the total amount was going to be $100,000. Now instead of going out and borrowing $100,000 and begin paying that off from day one, we begin with the floor, It’s going to be about $8,000 to polish, so they start paying that off from now.

Then in two months’ time, they do all the office, that’s say $15,000 so they will start paying that off from then.

When they need the stock to come in, that’s when they draw it down, they’ll start paying it off from then.

There’s no penalties for paying it out early, it can be in a month, it can be in three months or four months, when that lump of money comes in they can pay it off, or they can take it out over the term, which can be one or two years. Would you like to draw it down again? Yes, they can use it for stock-flow.

At Trident Leasing we’ll assess your business, have a look at what your needs are for that business, we’ll get as much information as we can from you and then we will source the most appropriate lender that meets your needs.

My company Trident Leasing has more than 30 years experience in facilitating loans to make your dreams become a reality!

We have accreditation with more than 20 different lenders.

If you want to discuss setting up an unsecured business loan for your business, give me a call, Peter Nichols on 0418 382 370 or Max Hamond on 0428 907 669

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