Are you purchasing a new business or franchise, or need capital to invest in a current business? A business loan
will allow you to develop and grow your business and you may be able to get whole or part of your loan at home loan rates.
Why do I need a Business Loan?
Business loans are tailored to assist you with the purchase of an existing business, starting a new business or franchise, or for major investments in your current business. To qualify for a business loan you will need to prove to the bank that your business venture will be feasible and profitable. You also need to have the background and experience to run the business and that you will be easily able to repay the loan within the set timeframe.
Business Loan repayment terms
Most business loans have a repayment period between 5-6 years. If you have borrowed some money to utilize in the business by offering a residential property in security, the funds secured against this property will have repayment period of 30 years. Because banks view businesses as a high risk security in comparison to a residential property, interest rates on business loans is usually 3-4% higher than standard home loan rates.
How much can I borrow on a Business Loan?
Typically, when banks are giving a business loan, the business acts as a security. In this instance banks will lend maximum 50% of the value of the business or purchase price of the business excluding GST. If you need to secure a larger loan it is possible to offer the banks other assets in security such as your home or investment property. In this instance banks generally lend maximum 80% of the value of the asset being offered as security.
What documentation do I need for a Business Loan?
- Evidence of business’s financial performance and history such as profit & loss statement and assets and liabilities statement prepared by a chartered accountant.
- Business Sale and Purchase Agreement.
- Copy of the Lease Agreement if business is going to operate out of a commercial premises.
Why choose Global Finance as your finance broker?
High loan approval rates
Approval of a business loan or commercial loan largely depends on proper presentation of numbers and customer background. Take advantage of our experience in this area to ensure you a have a higher chance of getting your loan approved.
Business Loans at home loan rates
We can evaluate your current rates and tell you if you can get whole or part of your business loan or commercial loan at home loan rates. These are generally 3-4% lower depending on your current loan and equity in your property.
A quick turnaround time for your loan approval can be the difference between a successful bid, and missing out. Timing is critical in business and commercial deals especially when there may be multiple people looking to purchase that business or property. Ensure you beat the competition by working with a team that will help you get the most out of your business or commercial loan as quickly as possible.
Room to negotiate interest rates
When you are buying a new business or commercial property, the costs can stack up pretty quickly. We work hard with banks to ensure you get a competitive rate to help keep the mortgage cost down.
Secure maximum loan approval
When it comes to buying a business or commercial property, every dollar you can secure counts. We work with you to ensure bank can confidently give you the maximum loan possible to purchase that dream business or commercial property.