BUSINESS LOANS

What is the purpose of your business loan?

A business loan can be a vital tool for Australian businesses. Are you looking to grow, manage cash flow or invest in new opportunities?

Whether you need funding to purchase equipment, expand your operations, or cover short-term expenses, a well-structured business loan can help your business thrive. As mortgage brokers, we’re here to guide you through the available options, ensuring you choose the right loan to achieve your business ambitions.

Small Business Loans (investment, expansion, vehicles, hiring staff)

Small Business Loans are a perfect solution for growing your business. They give a quick access to cash, in most cases with same-day funding. Loan amounts vary depending on the lenders from $5K to $5M.

Secured Business Loans

Secured business loans are loans that are backed by a valuable asset, such as property or equipment. This collateral reduces the lender's risk, allowing for potentially lower interest rates and more favourable terms.

Line of Credit (cash flow, inventory, capital, renovations, wages)

The Business Line of Credit loans can help you eliminate cash flow concerns and unlock new opportunities. Some lenders allow you to access up to $300k, with the flexibility to draw funds as needed. You’ll only pay for what you use, ensuring efficient capital management.

Business Bridging Finance

Funds are coming soon but need money while you wait? These loans allow you to plug cash flow gaps at heavily reduced rates. The amounts available for borrowing vary from $150K to $5M.

Property Development & Construction Lending Solutions (Commercial Loans)

There are financing options for such investments as Land/Property, Land Subdivision, Development/ Construction, Construction Completion, Mezzanine, Renovation/Flip and Residual Stock Loan.

Asset Finance

Specific finance solutions give an opportunity to borrow funds for assets such as business cars, trucks, minibuses and buses, trailers and yellow goods etc.

Advantages of Business Loans

Most lenders offer a quick, usually same-day turnaround on approval of the loan and receiving funds. Depending on the amount borrowed, often there are no credit checks, and the repayments are flexible.

BORROWING AMOUNT

✔ Know how much funds you want to borrow

TYPE OF BUSINESS LOAN

✔ What is the purpose of the loan?

✔ Are there multiple purposes?

✔ Which loan type covers your needs and amount?

DURATION OF THE LOAN

✔ What will be the term of the loan?

SECURITY

✔ What security you are able to offer the lender in exchange?

✔ Do you want to opt for an unsecured loan?

✔ How will this affect the interest rate?

NET PROFIT

✔ Can your business afford to repay the loan?

✔ Will you be able to cover the extra costs of interest and fees too?

Most lenders have specific requirement criteria depending on the type of the loan. These usually include:

Minimum time period of business in operation (for example 6 months)
Type of business, for example: Sole Trader, Company, Partnership, or Trust structure
Possession of an Australian Business Number (ABN)
Maintaining a bank account in the business’s/entity’s name
Verifiable income and expenses evidenced through the business account
Minimum income/revenue (for example $6,000 into the account)
Valid identification documents
Applicant must be 18 years of age or older

Certain lenders will approve the loan, even for applications with bad credit.

The repayment term for a loan can differ significantly based on the loan type and your agreement with the lender. It may span from a few months to several years.

Short-term loans typically have terms between 3 to 18 months, while long-term loans can extend up to 5 years or more.

The time it takes to get loan approval depends on the lender, the complexity of your application, and the loan type. Some lenders may approve loans within hours, while others might take several days.

To help speed up the process, ensure you have all the necessary documentation ready and submit it promptly.

When obtaining a business loan, understanding the associated fees is crucial to determine the total cost. Make sure that the selected lender keeps you well-informed about all expenses involved.

It’s important to note that each lender has their own fee structure, and you should know any applicable fees before submitting your application.

Below is a list of potential fees that may be linked to a business loan.

Discharge Fee: Charged for early loan repayment.
Application Fee: Processing charge for your loan application.
Brokerage Fee: Payment to a broker for loan arrangement.
Default Notice Fee: Fee for issuing a default notice.
Default Interest Rate: Higher rate applied in case of payment default.
Dishonour Fee: Fee for failed payments due to insufficient funds.
Late Payment Fee: Charged for payments made after the due date.
Missed Payment Fee: Fee for not making a scheduled payment.
Enforcement Expenses: Costs related to debt collection.
Legal Fee: Fees for legal services pertaining to the loan.
Caveat Lodgement Fee: Fee for lodging a caveat against your property.
Monthly Service Fee: Regular fee for loan servicing.
Reschedule Payment Fee: Fee for changing the repayment schedule.
Returned Payment Fee: Charge for returned payments.
Bank Change Fee: Costs for changing the designated bank account.
Designated Account Block Fee: Fees for blocking access to a designated account.
Security Amendment Fee: Costs for amending loan security.
Establishment Fee: Fee for setting up the loan.
Admin Fee: Administrative costs associated with loan management.
Direct Debit Fee: Charges for direct debit services.
Risk Fee: Fees related to assessing and managing loan risk.
Origination Fee: Fee for loan origination.

Please keep in mind that this list offers a general overview of possible fees, and not all may apply to your particular loan agreement. We recommend carefully reviewing the loan terms and discussing any applicable fees to ensure a clear understanding of the costs involved with your business loan.

We work across all major cities and areas in Australia.

RELEASE MORTGAGE

Enquire today and get the clarity you need

Navigating commercial and business loans can be complex, but with our mortgage broking services, you’ll have the guidance you need. We’ll help you find the best financing solutions for your business goals, providing clear advice and simplifying the loan process. Reach out today to get started with confidence and clarity.

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