Businesses change, grow and evolve. This means your business loan might not always match your business goals. Our mortgage brokers have access to hundreds of different business loans and can match your business with the right loan.
We can help you find flexible business loans for:
- Business working capital
- Buying a new business or franchise
- Buying or investing in commercial property
- Residential and commercial property development
- Equipment finance
Our brokers don’t just focus on your business loan. They’re experts in making sure your business loan is set up to maximise your investment.
Here’s a few ways we can help:
- Structuring your business loan
- Term loans
- Cash-flow finance
- Property development finance
- Hire purchase
- Chattel mortgages
- Leasing finance
Talk to us to find out more about the business loans available to match your unique business needs.
How would I use a business loan?
We can help with business loans to suit lots of different set ups. You might need finance for business capital, buying a new business or franchise, buying or investing in commercial property, residential and commercial property development, or looking to buy new equipment.
As with all loans, you need to know risks, so talking through the pros and cons with your mortgage broker is a good idea.
Not every business is the same and there are many reasons why you might need a business loan. Here are some of the more common scenarios.
Business working capital
Working capital is used to cover everyday business expenses like rent, utilities and wages. It indicates the liquidity of a business (this means the ability to convert an asset into cash quickly) and is usually represented as a ratio:
Working capital ratio (your current ratio) = current assets : current liabilities
A working capital ratio of 2:1 is generally where you’d like to be, however you should take into account the type of business you run and how variable your cash flow is when deciding on the right working capital ratio for you.
Your working capital usually comes from your business cash flow. If you have a new business, or if your business operates in a seasonal industry, you might need some help covering the day-to-day running costs. Cash flow finance or a business overdraft could help you cover your working capital requirements.
Buying a business or franchise
When you buy an existing business or a well-known or successful franchise, there are a few things you need to take into account. It’s important to analyse the business history, value of tangible assets, estimated value of intangible assets and your ability to earn a reasonable return on your investment. You might also want to consider the goodwill associated with the business.
A good history is a big positive when applying for finance. Generally, when you buy an existing business you’ll take out a business loan or term loan.
You’ll need work out your exact finance requirements with your mortgage broker to understand which loans might work for you. It’s also important to talk to your accountant and legal adviser to determine the worth of the business and all your financial and legal responsibilities. Lenders will fund many different types of businesses which your mortgage broker can talk you through.
Buying or investing in commercial property
If it’s important for your business to operate in a specific area, you might choose to buy your premises rather than lease. Owning the premises gives you full control over your location and fit-out, and is an ongoing investment.
You might also choose to invest in commercial property as part of your business strategy – it works in a similar way to purchasing property for your own use.
Residential and commercial property development
Property development covers everything from buying a block of land and building a house on it, to building a major CBD office building. Successful property development, no matter how big or small, involves good research and calculated risk.
As with property investment, a good property development will target the right place and the right type of building for that area. Look out for what locals need, and then develop your building to suit. Knowing the development plans and regulations of the local Council will also help.
Funding failure is one of the most common causes of failed developments, so it’s crucial to get your property development finance right from the start. Your commercial finance broker and lender should be involved with the project at the beginning. It’s important to know, particularly if you’re first-time developer, you’re likely to need some personal equity to use as security for your loan.