When business owners pursue new opportunities to grow, or they plan to solve a problem to prevent any business chaos, one common ingredient is required - money, and a good amount of it!
It is no secret that both established and new businesses require money for their daily operations, and short as well as long-term growth. The amount may vary, depending on the objective. For instance, businesses that are in the process of expanding can require more capital (and an additional amount as growth stages pace further) than those that are merely addressing challenges.
However, in current economically disrupted times when market volatility is taking a toll over businesses of every realm, liquidity crunches and a dearth of finances are huge concerns. As businesses thrive on creating a nest egg before the macro and micro-environment hit even harder (amid the COVID 19 outbreak and ongoing fear of recession), the concept of business lending is gaining traction in Australia, as it is across the globe.
Business Lenders - A Sneak Peek
As the term suggests, business lenders are companies that lend money to businesses that require it to meet their objectives. One can consider business lenders to be an informal bank. Informal, as the process of lending is relatively swift, simple and accessible, compared to other financial institutions.
This is how the process typically works - businesses apply for a loan (a term loan, for example) and the business lender grants the specified amount of money required by the business. As per a clause between the two parties, the business pays back the amount (plus interest) over a period.
Compared to banks, business lenders have been known to be less picky, quick decision-makers, far more receptive, and go comparatively easy on credit scores.
You would be wondering - how do business lenders acquire the funds necessary to issue loans? Their biggest source is ideally arrangements with investors.
Now that we have acquainted ourselves with the brief concept of business lenders, let us look at three lucrative Australian companies from this business background:
NobleOak- Simple Belief in “Doing the Right Thing”
An independent Life Insurer, NobleOak is highly accoladed and regulated by APRA. It has more than 140 years-worth experience. The insurer offers life insurance combining quality, no-surprises cover along with lower premiums and personal service.
NobleOak’s product range includes:
- Life Insurance- one can apply for a Life Insurance cover (up to $15 million).
- Income Protection Insurance- up to 75% of one’s income (up to $30,000 monthly).
- Total & Permanent Disability (TPD) Insurance- Up to $5 million of cover available.
- Trauma (Critical Illness) Insurance- 38 conditions covered (incl cancer, heart attack and stroke), Up to $2 million of cover available.
- Business Expenses Insurance - offers protection for fixed business expenditures (for up to $25,000 every month)
- A cost-effective and flexible SMSF Life Insurance.
These products are backed by Hannover Life Re, a leading global reinsurer for extra security.
The Company is regarded amongst one of the country’s longest-standing life insurers and recently launched a new targeted advertising campaign.
AAMI - "Lucky you’re with - AAMI"
A part of the Suncorp Network, AAMI is one of Australia's largest and most awarded insurers with an experience of more than 40 years. Driven by its humorous television crash commercials, the Company is known to have revolutionised the marketing of insurance products and services in Australia.
Its product range includes:
- Car Insurance - AAMI provides car insurance to over 1.8 million Aussie drivers.
- Home Insurance - catering to around 800k Aussie homes, the Company covers buildings, the contents inside it or both, costs for repair or replacement and other costs such as liability for injuries to others.
- Life Insurance & Income Protection - including accidental injury insurance
- Business Insurance - More than 60k businesses in the country use this product in Australia
- Health Insurance - AAMI is well trusted to help find a private health insurance product to cater to one’s lifestyle and budget and is curated for singles, couples, single parents and families.
- Travel Insurance - The Company offers comprehensive international travel insurance for singles, couples and families. Inclusions are delays or cancellations, medical expenses, and baggage issues, to name a few.
Besides helping Australians with attractive insurance policies, AAMI actively supports the community. For instance, Melbourne’s AAMI Park is one of the world's finest stadiums to view rectangular codes. The AAMI Victoria Derby Day (first day of the Melbourne Cup Carnival) is an awaited event and is the oldest and most prestigious horse race in Australia. The Company is also the co-major partner of A day on the green, a famous live music series.
As part of the AAMI Apprentice Support Program, the Company contributes around a million dollars to help repairers recruit and train high-calibre apprentices. It also runs the Skilled Drivers course where drivers under 25 are instructed in safe driving techniques using their own cars.
Club Marine - More Than Just Boat Insurance
Club Marine Insurance is Australia’s largest provider of boat and pleasure craft insurance. It has an experience of more than 50 years. It is backed by Allianz, which is amongst the country’s largest general insurers.
The Company services are fit for sailors, fishermen, water skiers, jet skiers and boaties of all kinds. However, Club Marine Insurance is more than just boat insurance as it actively supports over 00 yacht clubs, fishing tournaments, boat shows, regattas and volunteer marine groups.
Customers have the option to avail a range of exclusive member benefits once they join the Company-
- Club Marine Member Rewards - also available on the Club Marine App
- Club Marine Assist - round-the-clock support and unique personal service at no extra cost
- Club Marine App to stay updated with weather, events etc.
- An exclusive clothing range
- The Company has a network of service centres, riggers, and surveyor service providers to help select service and repair options
As deciphered, Australia offers a hoard of options that can be customised at the customer’s discretion. When one has a myriad of options of insurance companies to compare and then select, decision making is easier and safer. What’s important is to tap an optimal deal and secure one’s assets, irrespective of how the economic scenario is prevailing in any region.