Business Finance options to fund your website

Finance, Funding, Function

Building a high-functioning website to give your business greater access to a wider customer base may require a major investment. It should be done properly and have longevity built-in so you’re not needing to upgrade to an entire new site every few years. In addition you may possibly need to upgrade your hardware to allow for the increased functionality of your website.

There are business finance options to fund your website and your IT requirements.

Intangible Purchase Finance

As websites are intangible assets, website finance may not be included in the lending guidelines for some lenders in relation to business finance, ie asset acquisition. Clearly, it is difficult to use your website as security against a business loan.

For this purpose you may be offered:

  • Business Loan secured against other business assets such as property. These loans can be made over a fixed time with variable or fixed interest rate and with a fixed monthly repayment.
  • Bank or Non-Bank Lender Overdraft: a line of credit offered by either your bank or another lender over a shorter time. You are only charged interest on the amount of the credit that you use. So if you expect a good upturn in sales from your website, this can be a very workable option.

Hardware and IT Finance

If you’re upgrading your hardware and possibly doing a complete overhaul of your IT systems in conjunction with your website development, you may consider a commercial finance product such as:

  • Chattel Mortgage
  • Commercial Hire Purchase (CHP)
  • Asset Leasing

Each commercial finance product has differing treatments of accounting systems, GST, tax deductibility and balance sheet entry so you should consult with your accountant as to which is best suited to your business.

While there are differences, there are also similarities:

  • Fixed interest rate
  • Fixed loan term
  • Fixed monthly repayments

Option to include a residual or balloon amount

Using a Finance Broker

Smart businesses are not only using smart tech to access customers, they’re also using smart people to access their finance. Using a finance broker can be a very effective and streamlined way to source a flexible, workable business finance deal to fund your website.

Brokers are independent so they’re working in your best interests. They are not associated with any one finance company but are accredited with many. So they have many sources to find you the finance deal that is best suited to your requirements. They save you time and with their honed negotiating skills and bargaining power with the lending sector, probably will save you money on your loan.