Commercial Lending

With so many finance providers offering different finance types, with varying structures and repayment options, it can be difficult to find the one that’s best for your business. It pays to seek independent advice before you make your choice, and this is where our experienced team can help. Whether it is to purchase a business, commercial property, refinance your existing lender, or assist with negotiations with your existing lender we here to help. We are consistently saving customers money negotiating better terms with their existing bankers or finding them a better deal with another lender. It happens far too often that businesses have not structured their debt correctly and as a result what should be a profitable venture fails due to a lack of financial resources or the high cost of bad debt structures.

We can assist with all types of commercial and business loans for all types of purposes, including:

  • Commercial Property
  • Business Fit Outs
  • Business Purchases
  • Business Expansion
  • Business Plant and Equipment
  • Working Capital
  • Short Term Funding
  • Debtor Finance
Choosing The Right Loan

A business overdraft gives you access to cash to cover short term requirements, such as bridging the gap between service delivery and payment. An overdraft is usually unsecured, but is likely to offer a cheaper interest rate than a credit card.

If you need to make a larger purchase, you might consider a business equity line, which is suited to businesses that might need a cash injection on a very occasional basis. This form of business finance is likely to require security.

If you know how much you need to borrow, you might consider a business fixed rate loan, which gives you the certainty of fixed month payments. But if your cash flow is volatile you might opt for a business variable loan, as you may be able to reduce repayments if needed.

What You’ll Need

To qualify for a business loan you will generally need to be running a registered business although funding is also available for new businesses. You’ll need to demonstrate that you can easily repay the loan. There are a wide variety of business lenders with many different requirements. For low doc or cash flow lenders generally limited information is required but the interest rates are higher than those available for a full doc loan. For a full doc loan you’ll need to demonstrate a history of financial performance, including evidence of solid cash flow and the ability to manage expenses and liabilities. You’ll be required to provide security for the loan, traditionally in the form of either residential or commercial real estate assets. There are lenders that will use alternative securities such as goodwill, cash flow and debtors

The sheer variety of loans can be overwhelming, but our experienced experts can help you navigate through the various options to find the one that’s right for you!

Benefits of Business Loans

Business loans are designed to assist you with major investments in the future of your business. They are very different to other short-term forms of finance, such as an overdraft or commercial line of credit. They are generally used to directly fund business expansion, such as opening new premises, renovating existing facilities, or acquiring major plant and equipment. All of the loaned funds are withdrawn at the start of the contract, with regular repayments made over the life of the loan, which can be more than ten years.

Business Loan Options

There are many different types of business loans available in the market today which require the borrower to put up some form of security such as their business premises.

Fixed business loans

Payments are set against a fixed interest rate, and remain the same for the life of the loan, which can provide certainty around repayment amounts. However, interest rates on a fixed business loan are often higher than market rates. Some lenders will allow fixed business loan holders to make additional repayments (usually up to a set limit per year). This can be a good option for a business where cash flow has improved and there is an opportunity to pay off the loan sooner and reduce the interest incurred.

Variable options for business

A variable business loan allows greater flexibility, but as interest is calculated on an ongoing basis against market rates, it provides less certainty around future repayment costs. Different lenders also offer different repayment options, with some enabling reductions to interest only payments for a period of the loan. Additional payments may be made without penalty, and some lenders will also allow a redraw facility on their variable loans, enabling the business to access funds without having to create a new credit facility. It’s also possible to create loans with both a fixed and variable component, giving you the best of both worlds.

Business Overdrafts and Equity Lines

A business overdraft gives you access to cash to cover short term requirements, such as bridging the gap between service delivery and payment. An overdraft is usually unsecured, but is likely to offer a cheaper interest rate than a credit card.

If you need to make a larger purchase, you might consider a business equity line, which is suited to businesses that might need a cash injection on a very occasional basis. This form of business finance is likely to require security.

If you know how much you need to borrow, you might consider a business fixed rate loan, which gives you the certainty of fixed month payments. But if your cash flow is volatile you might opt for a business variable loan, as you may be able to reduce repayments if needed.

If you’re looking for a business loan, contact us on 1800 803 017 or apply online here.

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