Commercial Property & Business Lending

December 18, 2013
Steve Hodgkinson

Obtaining the right balance between the different types of finance and your needs, can make the difference between your business succeeding or experiencing an ongoing struggle with cash flow.

What types of business finance can we assist you with?

1.       Term loans for the purchase of a property or a business;

2.       Overdraft facilities to smooth out the bumps in your cash flow;

3.       Asset finance for trucks, forklifts, trailers and business equipment;

4.       Low doc business loans;

5.       Vehicle finance.

Term Loans

Term loans lenders can vary in the period of the loans that they offer with some lending over a 10 – 15 year term while others may provide terms of up to 25 years.

Similarly some lenders will restrict lending to 50 – 65% of the value of a property or business while others may in the right circumstances lend up to 80%.

As you would expect, interest rates also vary significantly which is why it’s important to have someone like ourselves to do the shopping around for you.

Overdraft Facilities

In many instances a business can be quite profitable but for one reason or another may have seasonal or an occasional need to have access to short term debt. This is where an overdraft facility can come into play and show it’s true benefit.

While the features and conditions may vary between providers, in general an overdraft facility will provide:

1.       No set repayments provided you stay with the approved limit;

2.       Ability to make principal payments and redraw at any time up to the approved limit;

3.       Are for a set time limit which is usually 1 year (with the facility reviewed annually); and

4.       Are subject to a minimum overdraft limit, which is usually $20,000 but can vary.

Asset Finance

From time to time all business’s need to update their equipment due to normal wear and tear or simply due to obsolescence in technology or efficiency. Asset finance is a competitive market where the item itself often forms the security for the finance provided.  The types of finance can also vary with finance options including:

1.       Novated leases,

2.       Commercial hire purchase, as well as

3.       Finance and operating leases.

We can help guide you through the different types of lending arrangements through access to our range of lenders, which enables us to quickly and efficiently track down an interest rate and finance arrangement appropriate to your equipment needs.

Lo Doc Business Loans

Due to various reasons a person or business may want to borrow funds to fund such items as a purchase of equipment, property or another business and the documentation required by the lenders for the finance for a full document loan is unavailable.

The lack of supporting documents may be due to something as simple as the fact that the last year’s tax returns haven’t been prepared yet or the most recent tax returns don’t reflect changes in business activity.

In these situations and in many others, the use of a Lo Doc loan can be a viable option which reduces the paperwork associated with the loan process.

Vehicle Finance

Our panel of lenders enable us to tailor the finance package for your vehicle to meet your cash flow and business needs. Whether it’s a longer or shorter loan term, or a lower repayment with a final balloon payment; or maybe you simply want to borrow against an existing vehicle to obtain little extra cash flow, we have the products and expertise to gain you the required finance on the terms that you desire.

Call me now on (08) 9317 4814 (wk) or 0457 227 227 (mobile) or simply send me an email enquiry and let me get to work finding you the finance that you need.

Posted in: Business lending

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