Focus on what you do best
How can a business finance professional help?
For years, business owners have remained loyal to traditional banks because they’re unaware of the available alternative options. However, times are changing, and business owners are beginning to realise the value of having an experienced business finance professional or commercial broker to advocate on their behalf.
What can business loans be used for?
A business loan can be used to help your business grow and evolve. You may have an opportunity to acquire the premises from where you operate your business, or perhaps you need finance to purchase a competitor’s business.
Business loans are traditionally secured by residential or commercial property. However, unsecured options are starting to be offered by lenders that are interested in seeing smaller businesses grow. Lenders want to know how the business intends to use the borrowed monies, so business owners must make sure they clearly outline how the money will be spent. Both unsecured and secured lending will require the business to meet certain turnover and profitability criteria.
How does it work?
Business loans have much lower interest rates, and extended terms are available from 10 – 30 years. These interest rates can be fixed or variable. A fixed interest rate means the interest rate remains the same for the duration of the loan. A variable interest rate indicates the interest rate can fluctuate in line with the market. Loan repayments can be both interest only or principal and interest.
When applying for a business loan, lenders evaluate the company’s history, the amount of debt the company has, the financial turnover and profitability. To be considered for a business loan, your business needs to be over 12 months old with a completed full years’ financials as a minimum. Our commercial brokers know how to best position you to be approved by a lender of choice.
Financing your business
Invest time into your business finances. Our business finance guide unpacks everything you need to know about financing your business.