WHY USE A COMMERCIAL BROKER
You’re busy running a business. It can be so hard to find the time, yet it’s so important to get it right.
The right finance can help you fuel growth and help build a strong and successful business. Get it wrong and the debt can often have the opposite effect. You don’t want your earnings being exhausted by your repayments, instead of providing you with the cash you need to operate successfully.
In business, the right finance is so much more than just finding the lowest interest rate, and reducing fees. Not only do you need the right type of finance, you need to be able to choose from the widest range of options, terms and structure. Needless to say, there are a lot of complexities. It can be a difficult area to navigate, and to have the confidence to know you’ve made the right choice.
That’s why using a broker like us is a smart decision. We will match the right business loan to your business needs.
We have access to a range of business loan options from a variety of lenders. This means we can help find the right loan for your business, and give you the peace of mind that like all good business decisions you’ve explored the options before making the final call.
We get to know you.
Before identifying the right type of finance product to suit your goals, we will get to know you and your business. Once we’ve identified what you want, we will source the most suitable loan and negotiate across our lending panel to get to the right deal that works for you and what you’re looking to achieve.
The latest choices.
We have access to a variety of different lenders with a choice of loan products. Because we deal with lenders day in and day out, we stay up-to-date with changes in the market and the latest business loans.
Get more from the banks.
We know how the lenders work and what they are looking for when it comes to their lending appetites. You may be surprised to hear they all have different lending objectives, parameters and processes; they all operate differently. We will help to structure your proposal, taking into account the various product types, interest rates and fee structures. And because we stay on top of changes in the lending market. We get a sense of lenders’ attitudes toward a particular industry or sector. If a lender’s policy or funding appetite changes in your industry, we can also help you consider appropriate strategies to ensure it is business as usual.
A fast turnaround
Our understanding of how your finance is structured and the criteria lenders use to assess applications, means we can help ensure the process is as quick and hassle-free as possible.
From application to approval.
We will prepare the funding submission, and we will work with the lender to obtain the most appropriate loan package including structure, terms, rates and fees. We will then manage the whole process through to settlement. All this to give you the peace of mind your business has the right funding in place, and leaving you to get on to do what you do best – growing your business.
Working Capital Finance
Working capital finance is a loan that helps you take care of your business by taking care of more immediate and day-to-day costs.
Like the name suggests, having this type of financing means you have the capital to cover vital costs like ensuring cash flow, paying suppliers on time, or covering employees’ wages during slower periods. Just as importantly, it also means you can have funds at hand when you need them to create growth and make the most of any opportunities when they happen. The money is there, if and when you need it, and usually you only start repayments when you’ve drawn down on it. Unlike other more specific business finance products, working capital loans can be used for many different purposes.
Secured or Unsecured.
- Some loans require collateral like your business assets, inventory or even your own home or commercial property as security. However, unsecured loans are still available. The great thing about this is you don’t have to bet your house on your businesses success. The main thing to remember is that because of the short-term nature of working capital finance, the interest rates and fees can be higher. At the end of the day, good business finance should help your growth, not hinder it and we’re here to help you find the right solution.
To Purchase A Business or Franchise
Whether you’re expanding a current business or starting up a new one, it goes without saying that finding the right finance product for your business or franchise is critical to your success.
The loan options out there are as wide and varied as the type of businesses the lenders are financing. Choosing the finance product that suits your needs is just the beginning. Before a lender will approve your loan, they often require a lot of detailed information. They’ll want to see real numbers about things like cash flow, profitability, tax returns, sales forecasts and growth potential of the business. From you they’ll also want to know about your qualifications, your personal assets and liabilities, and how much you’ll be able to invest. It can often be a complicated and time consuming undertaking. We can guide you through the entire process, from selecting the right loan, to putting the application together and getting final approval. We work hard to stay up-to-date on available products and understand what lenders need for your application to help maximise your chance of approval.
COMMERCIAL LOANS (PROPERTY & DEVELOPMENT)
Like residential real estate finance, the commercial category is competitive among banks and lenders.
Your business can make the most of this to create excellent opportunities for growth and long-term investment. However, in contrast to the more familiar residential market, there are many more variables. A commercial real estate loan can be used for anything from retail to industrial, office complexes to aged care facilities, or hotels and apartments, and the finance can be used for buying land, property development or construction. This means you’ll need an understanding of the commercial finance market. Enlisting the help of an experienced business finance broker is a good place to start.
EQUIPMENT & VEHICLE FINANCE
It’s a common question for small business owners; how do you get your hands on the equipment you need to grow, while still keeping the all-important cash flow and working capital?
Choosing the right equipment finance gives you a lot more benefits other than just preserving your day-today funds:
- Equipment can generate immediate income.
- Equipment Finance preserves working capital.
- Repayments let you budget more accurately.
- Loans are often secured by the asset so usually you don’t have to put your house on the line.
- There could be potential tax advantages to consider.
What can be financed?
Any plant or equipment that can help generate income for your business can usually be financed. Some examples are as follows:
- Motor vehicles.
- Commercial vehicles.
- Plant and machinery.
- Agricultural equipment.
- Computers, photocopiers and phone systems.
- Medical and dental equipment.
- Office equipment.
- General business equipment.
What types of equipment finance are there?
There are many different financial products available with some more popular than others. It is important to discuss with your professional advisers such as your accountant which product may be appropriate for your business needs. These options include Commercial Hire Purchase, Chattel Mortgage, Finance Lease, Novated Lease, full maintained Novated Lease and Operating Lease. The more commonly used options are Chattel Mortgage, Finance Lease and Novated Lease. We can help you evaluate the key benefits and differences for each product.
- The equipment belongs to you from the beginning and the lender has a ‘charge’ over the equipment that secures the loan until the final payment has been made. Because the borrower holds title to the goods there may be taxation benefits. So it’s important to get the right advice from an appropriate professional adviser such as an accountant on how this could best work for you and your business.
- The lender (lessor) purchases the equipment outright. The borrower (lessee) gets to use the equipment for the term of the lease in return for lease/rental payments. Under a finance lease the borrower (lessee) traditionally doesn’t need to outlay any working capital and may also be eligible to claim a tax deduction. You should consult your tax adviser about potential tax deductions when considering a finance lease.
Novated Lease for Vehicles
- A Novated Lease is a three-way agreement between an employee, their employer and a finance company. The word “Novation” refers to the substitution of a new contract in place of an old one. In other words, the employer agrees to take on the employee’s lease obligations. The employer makes the monthly lease payments out of the employee’s pre-tax income.