Global Expansion on the Rise for Australian Businesses: How You Can Expand Too, With a Caveat Loan

By: Aaron Robbins0 comments

If you’re an Aussie business, then you may have noticed your competition charging ahead with global expansion — if you’d like to go global but aren’t sure how, a caveat loan could be the answer.

Expanding your operations into a foreign market can come with many advantages.

Spurring your business’ potential into the future does require the funding to get you there, though.

Keep reading to find out more about how a caveat loan could help your business arrive on international shores.

How many Aussie businesses are going global?

Global expansion figures come from released data by global fintech company, Airwallex.

Airwallex revealed that more than two-thirds of small-to-medium Aussie businesses (69%) plan to operate outside Australian shores by 2027.

The independent research carried out by Airwallex surveyed more than 200 Australian small-to-medium enterprises (SMEs).

The findings confirmed that businesses already operating in international markets are experiencing commercial success.

Two in five of these businesses (42%), reported being profitable and more than half are breaking even (52%).

According to Sam Kothari, head of growth at Airwallex, “Aussie businesses are bolstering their position to weather the current economic challenges”.

The biggest growth opportunities overseas

Despite the economic hardship faced recently (including rising inflation and disrupted global supply chains), 96% of SMEs already operating overseas recorded growth last year.

Stats show that the region where they have seen the most considerable growth in sales and revenue was Southeast Asia.

Almost two in five respondents remarked that their second largest revenue generator (outside of Australia) in the past year was this market, closely followed by the United States.

Alongside these statistics, Kothari added, “Australians are innovators, and there is growing global demand for the products and services they provide”.

Benefits of taking your business global

If executed correctly, taking your business global can reap many benefits.

One of the common advantages involved with expanding your business on an international scale is new revenue potential.

Going global could be the exact step your business needs to take revenues to new heights, as you get access to a much larger customer base.

Human Resources

Going global can give your business greater access to talent while also developing cultural awareness.

Companies can access a whole new pool of potential employees with unique skills and mindsets, some of whom may be hard to find in Australia.

Accessing human resources outside the reach of companies yet to expand gives your company the upper hand.

Developing benefits to use back home and abroad

Intimately understanding cultures from different regions, and diversifying your cultural knowledge can make for a well-rounded organisation.

The ability to build rapport and relate to those from other countries will give you a new perspective on customer relations — it may even help you work better with domestic business partners and customers.

Improved reputation

Improving your company’s reputation can not always be an easy feat to accomplish, however, businesses that can successfully market to a different audience and break into another population show business partners that they have a high international presence, making them more appealing to potential investors or stakeholders.

Diversifying company markets and understanding the culture will play a massive role in the success of your global expansion efforts.

Therefore, working with a company that specialises in not only translation but cultural consulting can assist in preparing authentic marketing content.

The steps you need to walk your business abroad

Global growth can be rewarding and of course, daunting.

The main drawcard to going global is to improve your potential for expansion and growth.

However, like anything new, it can come with ‘do’s and don’ts.

Considering the bigger picture is an important step; key questions to ask are:

  • Will the product/service sell well in the targeted culture?
  • Is your target market familiar with your product or service?
  • Do you feel comfortable in that country?
  • What is the infrastructure like?

If you don’t get the answers you want with the first foreign market, you’re considering entering, that doesn’t necessarily mean your idea is poor; it’s just that you picked the wrong place.

Each year, countless SMEs make the trek to going global, and like most long journeys, small steps can be taken to get there:

  1. Assessing your readiness and commitment to grow internationally before you get started is essential.

    Therefore, starting a campaign to grow by international expansion by preparing an international business plan to evaluate your needs and set your goals is essential.

  2. Conducting foreign market research and identifying international markets that suit your business’ objectives.
  3. Evaluate and select different methods of distributing your product abroad.
  4. Learning how to negotiate deals, effectively set prices and navigate the complexities of exporting.
  5. Access government and private sources of financing-and figure out ways to ensure you are getting paid.
  6. Shift your goods to their international market, paying particular attention to the market regulations within the market you’re looking to sell to when you package and label them.
  7. Entering the international market can protect you against the risk of decline in domestic markets and, most importantly, significantly improve your company’s growth prospects.

The challenges that come with global expansion

Going global has many advantages, but they don’t come without challenges.

Suppose your business is concentrated to one or two areas in a domestic market.

What would happen if the markets experienced a dramatic shift, such as a natural disaster or unforeseen circumstance?

Taking a business global gives diversity across markets, giving your revenue sources the opportunity to stabilise.

Of course, it’s important to access any legal or financial advice that your business might required before looking at expanding past Australian borders.

If an effective strategy is created for overcoming hurdles that going global might present, the process can produce many benefits to enjoy for years to come.

However, many businesses understand that the expenses incurred to strive for better revenue sources and take the best chance at overcoming the challenges of global expansion requires sufficient funding and investment into their business.

Accessing foreign markets using a caveat loan

Caveat loans are a unique, and innovative business finance solution that allows business owners to unlock the equity in a real estate property to fund a range of business purposes.

How are caveat loans secured?

Caveat loans are business loans that are secured using property using a caveat. The caveat on the property title means the borrower can not sell the property until the loan is repaid. The caveat loan sits in line behind first or second mortgage.

How does a caveat loan work?

Caveat lending involves placing a registered caveat on the property title of a residential property or investment property, effectively allowing up to 75% of the equity within the property value to be utilised as a caveat loan!

Many business owners are drawn to the flexibility of urgent caveat loans, as they are particularly effective at immediately boosting their business’ cash flow.

The other main benefits to caveat finance are:

  • You can access a caveat loan even with an existing mortgage owing on the property.
  • Caveat lenders don’t rely on your credit file, instead looking to set an exit strategy and repayment schedules to devise how the loan is to be repaid.

    This makes short-term caveat loans ideal for business owners with bad credit!

  • Unlike other bank loans, caveat loans are funded in a matter of days, giving them the nickname ‘fast caveat loans’.
  • A short term caveat loan usually only has a loan term between 1 – 24 months, meaning that it’s one of the shortest business loans on the market.

How can short term caveat loans let my business expand globally?

Caveat loans allow you to access funds quickly, and easily, to put to good use within your business.

If you’re looking to access a lump sum of money to be able to implement your global expansion plans, look to your real estate assets!

Unlike other business loan applications from other lenders, a caveat loan application is pain-free, and efficient.

Bear in mind that most caveat lenders cannot accept overseas properties as security for a caveat lending transaction in Australia.

Apply for a caveat loan with Diverse Funding Solutions

If you need urgent funding, simply want funds quickly, or don’t want your bad credit history to impact your expansion plans, consider using a Diverse Funding Solutions caveat loan.

Your caveat loan amount could be up to 75% of the available equity in your security property!

We offer flexible lending criteria and a hassle-free application process; no mountains of paperwork, tax returns or Government records required.

Before accessing our minimal documentation caveat loan application, request a free quote or speak to our friendly team about how we can help you expand your growth horizon.

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