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Business
Loans
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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.
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