How to get a business loan
People normally need to have security to get a loan to buy their first business.However, if the business is a franchise, some bank may lend you 50%-70% purchase price. Existing business owner normally apply for small amount of business loan(up to $50,000) or large amount(from $50,000 to $250,000, even more), secured or unsecured, which affect its interest rate. Loan term can range from several months to 25 years.
Decisions to make
Deciding that your business needs a loan is only the first step. There are a number of things to consider before you apply for a business loan: how much do you need to borrow; what type of loan will you need; how long will you need it for; can the business afford to repay the loan, interest and any one-off or ongoing fees that come with the loan? What security can you offer the lender and how will this affect the interest rate offered.
Access to funds you borrow
If you need to access the funds on a semi regular basis (i.e. to help with cash flow to keep the business operating while waiting for your customers to pay for goods etc.), ‘at call’ loans such as an overdraft or line of credit are designed for this purpose. However, if you need the funds to buy a new business or equipment etc. to expand your existing business you will need the funds ‘upfront’. This is also known as a ‘fully drawn advance’ and provides you with the entire loan amount all at once. You can use the cash for any business purpose you like. A few ways our customers have used the funds:
* Start up or buy a new busiess
* Improved Cash Flow
* Pay off any expenses
* TAX or BAS payments
* Purchasing stock
* Hiring extra staff
* Upgrading equipment
Loans provided upfront will need a portion of the loan plus interest paid back at regular intervals. The repayment amount will depend on the term or length of the loan. To determine if the loan term suitable for your business you will need to calculate how much you can afford to service the loan. Be aware that the longer the loan term the more total interest you will pay.
Loans can be secured or unsecured by various types of assets, including residential, commercial, rural property or registered vehicles. Alternatively, some loans are unsecured by any asset. Generally the less you provide for security the higher the interest rate will be. Be aware the lender has the legal right to seize any property or asset you offer as security if you can’t repay a loan on time.
These include one-off fees such as establishment/application fees, exit/discharge fees and early termination fees or regular fees such as service fees or line/credit advance fees.
Some key customers criteria maybe as follow:
- There is sufficient security on offer: up to 100% value of a Residential property or 80% of the value of Commercial property.
- Credit check confirms no history of defaults/judgements.
- Recent BAS statement (within 4 months)
- 3 months bank statements
We can help a broad range of industry, such as restaurants and cafes, building construction, retail, import and export, etc.
Funding solutions could be one-off payment into your bank account. Or fund your business based on your account receivable invoices or account payable amount.
Apply below, there will be a quick decision on your enquiry whenever you need fund for your existing business or start-up business.