For small business owners, there are a large number of business loan options available in the market including business loans offered by the Banks and those offered by Non Bank Lenders.
There is good news and bads news when it comes to comparing your the options for business finance.
The Good News
The are a number of good sites that provide business loan comparisons. These comparison sites include the following:
These sites show multiple lenders and include a comparison of interest rate, security and some basic conditions. It is a good place to start to compare bank finance options see if any of the Banks are offering any good deal.
The Bad News
First, the vast majority of the options you will see on these business loan comparison sites are for property secured business loans. The typically don’t give a review of unsecured business loans – partly because few of the Banks provide a true unsecured business loan (most offer a business credit card as an altternative).
Second, the business loan process is a relatively complex one from an application and credit assessment perspective and each Bank has different processes and criteria. So, just becuase you quaify for a business loan at one bank doesnt mean you will qualify for a loan at another bank.
Third, there are a very large number of business finance options available to business and the business loan comparison sites only cover a very small number. In addition, to the products that the business loan comparison sites compare, there are business leases, hire purchase, invoice discounting, invoice factoring, working capital loans and other products.
For this reason if a business has a need for financing that isnt a property secured commercial loan then the business loan comparison sites are unlikely the best alternative. Business owners are likely better placed reviewing the various business finance options available and then speaking to a professional business loan adviser to ensure they get a financing solutions that best meets their needs.