Exploring leases, hire purchasing, line of credit and overdraft business finance

Your small business will sometimes need a quick and easy access to extra funds. Understanding the complex range of small business finance options available is no easy task!

Our current blog series helps explain each of your short term small business loan options. Let’s now take a detailed look at leases or hire purchasing, and line of credit or overdraft business finance.

Leasing or hire purchasing

  • Instead of purchasing a new asset outright, your small business can choose to lease it, or acquire it through a hire purchase arrangement.

  • Lease and hire purchase arrangements are commonly used when a business needs expensive heavy machinery, vehicles or office equipment such as a photocopier.

  • This type of small business finance allows you to have and use the asset for your small business, while making progressive instalment payments.

  • Under a lease or hire purchase, your business doesn’t own the asset until you have finished paying for it. Until then, the finance provider owns it.

  • This is the main difference between a lease or hire purchase arrangement and a small business loan. When you instead loan funds to buy an asset, you own it while still making your loan repayments – not the lender.

Line of credit and overdraft small business finance

  • A line of credit is when your small business has approved access to a set credit limit.

  • This revolving line of credit means your business has ongoing access to extra funds when expenses or unexpected emergencies arise.

  • You then repay any funds borrowed using your line of credit, plus interest and any fees that your lender charges.

  • An overdraft works in a very similar way. The difference between a line of credit and an overdraft is attached to your existing transaction account with your bank or lender. You only have access to the approved credit amount once you no longer have any funds remaining in your account.

  • A business line of credit or overdraft can be secured or unsecured, depending on the lender. There is usually no minimum monthly repayment on any amounts borrowed, as long as you meet the monthly interest and fee payments.

Need another option for a quick cash injection for your small business?

  • Whatever your small business needs extra cash for, Limba can help you access fast, unsecured and hassle-free finance.

  • We understand small business and its challenges. If you haven’t been trading for long or need a cash injection quickly, getting support from the big banks can be tough.

  • Unlike the big banks, we want to make like easier for small business! We can provide easy access to additional cash flow and offer unsecured business loans up to $10,000.

Let us help your small business build and grow

  • Limba can offer your small business an obligation free quote for your business finance needs. During business hours, we’ll email you a quote within an hour!

  • Limba also offer your small business:

    • a streamlined application process

    • a Business Specialist to assess your needs and guide you through the application process

    • fast approval and next day funding

    • no hidden fees

    • easy weekly, fortnightly or monthly direct debit repayments

Applying is easy!

The application form only takes approximately five minutes to complete.

  • Our friendly Business Specialists will call and assess your needs, advise you of the outcome of your application and recommend a suitable repayment schedule.

  • Funds can then be in your account the next business day!

  • Call 1300 10 10 77, or email us at business@limbaloans.com.au.

  • You can also apply online today!