Restaurant Bar

Business Lending Needs

Small to medium sized business has unique needs when it comes to finance.

 

The ease of getting finance changes how long you have had your ABN (Australian Business Number) and if you have two years of financial statements available.

The most cost effective finance solution is available for a minimum of 2 year ABN registration and 2 years financial statements and a property owner.

If you don't have all of these, don't despair, there are lenders that will have solutions but the overall cost will be higher.

 

New Start Up

Getting any new start up business  operational is a struggle.

Some business start ups are built on multiple credit cards & personal loans, and small equipment finance agreements, because the lending policy for a regular  type of loan is just too hard.

When it comes time to sort out your loans  and other finance, the available options will vary depending if you own property or not.

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Established Business

You may be looking to get better interest rates now that you have solid 2 years financials behind you, or perhaps you have a cashflow issue.

Improving your current interest costs

Now that your business is established and you have positive net profit (with the allowed addbacks of depreciation etc) over the most recent 2 years of financials, and an ABN for at least 2 years, it may be the time to start looking at a more regular finance solution and save on your interest costs.

For Cash Flow there are a number of finance solutions that may suit you:

Insurance premium funding may provide cashflow relief, to manage the overall insurance costs.

Examples of insurance that can be funded:

  • #public liability insurance

  • #building insurance

  • #car insurance

 

You get the picture it all adds up.

 

Imagine if you could bundle all the insurances into a 10 monthly payments, smoothing out the insurance premium hurdle, and letting you focus on your business.

Instead of the strain of a lump sum payment, you simply make a single, more manageable payment each month. It’s an easy way to maintain your professional cover / insurance while also streamlining your cashflow.

Debtor Book Finance/ Invoice Finance: another way to free up some of your tied up cash

Debtor finance uses your accounts receivable book as collateral for financing.

Generally it is used by invoice heavy businesses to unlock the monies sitting in receivable invoices upfront, and use in business cashflow

Depending on the lender/ product debtor finance can be managed in 2 ways;

  • # The business continues to manage the invoices and pays the lender back the borrowed monies.

  • # The lenders takes over managing the collection of the invoice monies.

Car & equipment Finance are both well know and well used finance options for business.

Trade Finance: helps businesses to maintain working capital and fund the purchase of stock, raw materials, and inventory.

 

Using Residential Property as Security

 

If you are prepared to use residential property as security you could use a regular home loan with a lender that allows business use purpose ( not all lenders allow this).

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