A sudden equipment failure that brings work to a complete halt is every small business owner’s worst nightmare. Fortunately for Jamie Snow, owner of a Brisbane-based house cleaning operation, it did not spell the end of his business.
Snow took over A Clean House Washing in Brisbane in late 2016 from a family member, after having spent more than 30 years in the IT industry.
Business was going well thanks to an established client base, however an equipment failure threatened to end his new career as quickly as it had begun.
“When the house cleaning equipment we use wears out, it’s expensive to replace,” Snow explains. “I needed a new solution pump and it was $950 just for the pump, and on top of that I needed a new tank. The high-pressure washer we use wore out too.”
“I just needed a quick injection of $5,000 to cover the cost of replacing some of our key pieces of equipment,” he said.
While Snow only needed a small cash injection, he said traditional lenders were not even an option for his new business, despite their glossy adverts and promises.
“You’ve got to jump through all these hoops, such as presenting two years’ worth of my personal tax returns from when I was in IT – well that’s an industry I don’t work in anymore, so what’s it going to prove? They should be focused on the cash flow of the business as it stood.”
“I was dealing with people at the banks who’ve never been in business themselves and just don’t understand. Finding someone who actually knows what they’re talking about was like trying to find a needle in a haystack - and I didn’t find it!”
Instead, Snow turned to a specialist online small business lender – who, unlike the big banks, was prepared to listen.
“I heard a Prospa ad on the radio and applied online. They understood my situation and were able to approve my loan quickly,” he said.
Backed by the financial support, Snow acquired new equipment and is now planning on further growth for his business.
An immediate priority is investing in search engine optimisation (SEO) and improving his business website to further attract customers.
“Longer term, I’d like to get at least three trucks operating – growing the business but keeping small enough to offer a personalised service to clients,” he said.
For a small business struggling to replace vital equipment, finding the right lender can prove crucial to cleaning up some business success.
Do you have cash flow worries? Talk to Prospa about a business loan that is tailor-made for small business owners and tradies.
This article is provided by Prospa, Australia’s leading online provider of small business loans.