How to use business lending to help your business grow

Do you have a growth opportunity? Whether it is to invest in people, expand your operations, improve infrastructure or grow your product offering, borrowing may provide the funds you require. Find out about the business lending resources that may suit your needs.

Borrowing for growth

Business growth has multiple benefits. Beyond increased profits, your motivations to grow could be to have more resilience in the market or diversify your offerings. Maybe you want to grow your reputation and attract the best talent to your team. Larger operations may also let you capitalise on economies of scale, like spreading your staff and administrations costs over a greater output or reducing your costs by buying in bulk.

Before your operations can scale up, you may need to invest. Relying on your cash flow and savings to fund your growth strategy may slow you down or halt your growth altogether.

Some business owners choose to partner with investors to receive an injection of funds. While appropriate for many, this kind of finance can mean giving up partial ownership of your company. It could also require investor involvement in your strategic business decisions. Many of our customers started their own business because they value their independence, so it may not appeal to everyone.

Borrowing may allow you to grow without eating into your working capital or your savings. Business lending may also help you pursue your growth plans while retaining a 100% stake in your business.

Of course, business lending relies on your business activity to repay the capital you’ve borrowed. That’s where your dedicated Business Banking Manager comes in. We work with you to know your business and understand your goals so we can design a solution to help you meet your growth plans.

How lending helped one business grow

Heidi Jonsson, the owner of Norsafe, an electrical safety testing business in Cairns, spoke to us about how Bendigo Bank business lending helped her business grow.

She first came to Bendigo Bank as a customer for her residential property. Heidi purchased a duplex so she could rent one side and operate Norsafe from the other. She built up some equity and planned to purchase another investment property.

But an unexpected opportunity for growth came her way. Her main competitor approached her to buy him out.

Heidi was using another bank for her business at the time, but she felt restricted. Norsafe was doing well, and her cash flow was good. She knew if she wanted to take the growth opportunity, she needed a bank that would understand her vision for the business. So she approached Bendigo Bank.
Business banking manager Scott Armitage was able to see the value in her proposition.

“The record that Heidi had with her residential loan, plus the figures of the company she wanted to buy and her planning and management created a win-win for the bank and the customer.”

Heidi says it felt like she had Scott on her team. She says it’s the relationship she has with him as her banking manager that sets Bendigo Bank apart.

“It felt like Scott was on my team, and I really appreciated the commitment and dedication to ensure that my dreams happened.”

Because of the equity Heidi had in her property, Scott was able to tailor a term loan package that gave her 100% of the funds she needed.

“The funds from Bendigo to purchase the business have saved Heidi ten years in organic growth to get to the same position,” says Scott.

The loan has impacted Heidi in many ways. Merging the businesses has made her the owner of the largest Electrical safety compliance company north of Brisbane. It allowed her to do this while retaining equity in the business. She can also trade without worry as she didn’t have to dig into her operating savings to make the purchase.

She explains “I’ve been able to hire more staff without struggling. Bendigo Bank loans have also allowed Norsafe to invest in systems that streamline operations, like Service Mate, a job scheduling program. It’s freed up my time and mental space to implement growth strategies or take some well-earned time out.”

Heidi finishes by saying, “Norsafe is mostly women – Mums trained up from scratch. I love that we’ve got the opportunity to get income to local families and keep people safe every day. Bendigo Bank has played an integral role in doubling the number of businesses we can reach. I look forward to Bendigo Bank helping me with my next big dream.”

Business lending options

Lending can include several products, depending on the day-to-day and long-term needs of your business.

Term lending

If you need the security of a sum of money over a set period that has flexible repayment options and a choice of fixed or variable interest rates, then your banking manager can design a term loan offering for you. Bendigo Bank tailors this solution specifically to your business’s situation and growth strategy.

Business overdraft

This facility can give you the confidence to take on a big contract, secure in the knowledge that you can meet your operating costs before you get paid. It’s a loan that sits on your primary trading account, and it’s fully fluctuating. You can use what you need when you need it and pay it all back when your clients pay you.

Equipment finance

This allows you to purchase necessary equipment and vehicles for your business. The finance is secured against the eligible asset rather than your bricks-and-mortar equity, which means you can use your equity for other things. Bendigo Bank also has an option where the bank purchases and owns an eligible asset, and you lease it back or purchase it in instalments.

Explore our business loans and finance page to find out more about Bendigo Bank’s business lending products.