Business Loans

 

Business finance is best sought by the major banks that can offer a full range of services to help run the day to day operations of a business.

 

In Australia the major business lenders are;

 

- ANZ

- Bank West

- Commonwealth Bank

- NAB

- St George

- Suncorp

- Westpac

 

 

Buying a business or franchise

Accredited franchises can use  50 - 60% of the businesses value as security against the loan.

 

For example, if you were looking at a franchise such as a Video Ezy or Bakers Delight and the value of that business is $500,000 then the bank will lend $250,000 to $300,000 of that businesses value. However, this is is entirely dependent on the lender.

 

All other business are assessed on a case by case and is dependent upon but not all of the following factors

 

     -  Security offered

     -  Loan amount

     -  Type of business and how long it has been established

     -  Experience of the business owner relating specifically to that industry

     -  Location of the business

     -  Competition in that industry and in the local area

     -  and many other factors

 

Security offered for investing in a business can be but not an exhaustive list are;

 

     -  The business it self as mentioned above

     -  Residential property usually 80% of properties value but can go to 95%. Largely

         depends on the borrowed amount

     -  Commercial property - between 60 and 80 percent of the properties value depending on

         type and location.

     -   Equipment

     -   Other tangible assets depending on the lender

 

 

Servicing a Requirements

The lender wants to know how are you going to repay the loan. Most lenders will take into account and ask for the following information;

 

     -  If it is an established business they will want to see at minimum of two years business

         and personal tax returns

     -  Established business must show the balance sheet and the profit and loss for a minimum

         of 2 years

    -   May need to provide a business plan with projective cash flows

    -   Any other income generated by the business or personal income

 

  

Interest Rates

Interest rates are determined after performing a 'Business Risk Assessment'. This takes into account the factors mentioned above and other criteria. Generally speaking, the less the risk the lower the interest rate.

 

 

How Can We Help?

 

Save you time by assessing your business loan proposal is viable and it will be looked at by business lenders

 

Submit your application to a number of business bankers that will assess your proposal

 

 

Work with you to find the best solution and help negotiate better terms and rates

 

 

Answer all your questions and offer ongoing support

 

 

 

For more information or to get the process started  fill in an enquiry form or call

1300 726 136 for immediate assistance.