The Sunshine Coasts Business Finance Experts
There are many different types of business loans, many of which are described below. But there is probably a lot more information here than you need. The basics are, if you want business finance on the The Sunshine Coast, Brisbane or anywhere in Australia, give us a call. We have many years experience in the business finance sector and can help you work out what loan you need and how to get it approved the quick and easy way.
With over ten years with ANZ business (Australia, New Zealand), credit ANZ and corporate banking, Jon Colley and the team at Loan Wize have the experience you need to ensure that if you are buying or refinancing a business, require additional working capital, purchasing a commercial property or wanting to discuss some of the numerous other finance options including Debtor or Stock Finance, he will be able to provide the answers for you. Jon has been in the commercial finance industry for many years and can give you the right advice to ensure that you are well informed, giving you clear financial projections before making any purchase decision regardless it’s for a new startup – start up business loans Sunshine Coast, existing for big or small businesses.
Jon was with ANZ Corporate Banking from 1998 to 2003 and specialised in commercial loans for businesses with more than $20m in turnover or $2m in lending. That is not to say that he does not understand smaller business either, having started in the ANZ as a small business specialist.
Jon can also assist with any SMSF borrowings you are considering and provide you with comparison rates, and this can be a fantastic option for those seeking to purchase their own business premises and stop paying rent.
Property Development funding is another area that Jon has had experience with as well, and while the Banks have made their policies more difficult since the GFC, there is a range of lenders out there that will consider these proposals on more favourable terms than the banks are currently offering.
Our experience and access to a wide range of lenders mean we have become the business finance brokers Sunshine Coast business owners trust for the right product at the right rate. We can provide finance for both the usual and unusual needs of a business customer.
Type of Business Loans
Business finance is borrowings used specifically for the operation or acquisition of a business. Business Loans are usually secured (secured loans) by a residential or commercial property, however, in certain circumstances, the lenders are willing to consider borrowings against the business value (on the acquisition and refinance/restructure) depending on the cash flow of the business (often referred to as cash flow or unsecured lending).
These business loans are for business purposes only and the cost associated with these loans are generally tax deductible.
Many established businesses can be funded against the business value up to approx 50% of the purchase price, excluding stock. This is dependent on many factors such as how long the business has been operating, the income from the business, and the business experience of the new business owners. Security of tenure (or the length of the lease on your premises and/or license agreement in the case of franchises) is also a very important factor for consideration, and the bank will also consider the impact of this.
This is where a lender gives you a limit of how much you can borrow, generally for Working capital requirements. You can draw down as little or as much as you need up to that limit for business and trading purposes, and although there is a line fee applies to have this facility in place, the interest charges are only incurred on the portion that you actually use.
This is one of Jon’s specialities, having completed many commercial finance proposal for the purchase of commercial property for either business owners seeking an ideal location to operate their business from, or investors seeking the strong yields that a commercial property can offer. If you are considering the purchase of a commercial property, and want to discuss options around the finance, you need to speak with Jon before making any decisions. We find with many lenders now restricting the term of the loan to 5 years or servicing these loans over a maximum term of 15 years, there are other options that the major lenders cannot offer that may provide you with an alternative to finance your property over 20 to 25 years.
Franchise funding is exactly what the name suggests; it is where lenders fund people who are opening a franchise. Lenders are likely to franchise finance because they have proven that their business model works as opposed to new start-up businesses. In some cases, if a franchise is on a lenders preferred franchise list, you may be able to borrow up to 50% to 60% of the franchise value.
Management Rights are a very popular business type in Queensland and lenders provide favourable lending options for prospective purchasers of this type of business. The parameters for this type of finance is heavily dependent on the specific details and location of the resort, management experience of the prospective purchasers and the overall profitability of the business.
With this finance, the lenders give you a percentage, in cash, of what is owed to the business (usually between 80-90%). The amount depends significantly on the age and quality of the Debtors. Debtor Financing can be a great way to obtain more working capital to grow your business without the need to contribute more property security.
With lenders now offering Finance to allow the purchase of investment properties through Self Managed Superannuation Funds (SMSF), borrowers can look at purchasing their business premises through their SMSF providing access to capital inside your superfund that would otherwise be inaccessible.
This is a great option for business owners and investors alike, and given the strong yields and potential capital growth in property, could be an ideal to purchase the next investment property. We work closely with all three major parties/advisers – your accountant, financial planner and the lender – involved when arranging finance of this nature.
Commercial Loans
Equipment Finance and Working Capital Facilities
Commercial Loans are typically used specifically for the operation or acquisition of a business. These types of loans are usually secured by a residential or commercial property, however, in certain circumstances, the lenders are willing to consider borrowings against the business value (on the acquisition and refinance/restructure) depending on the cash flow of the business (often referred to as cash flow or unsecured lending).
Commercial loans are for business purposes only and the cost associated with these loans are generally tax deductible.
Commercial Loan Requirements
Many established businesses can be funded against the business value up to approx 50% of the purchase price, excluding stock. This is dependent on many factors such as how long the business has been operating, the income from the business, and the business experience of the new business owners. Security of tenure (or the length of the lease on your premises and/or license agreement in the case of franchises) is also a very important factor for consideration, and the bank will also consider the impact of this.
Overdraft (Lines of Credit)
Business Overdraft, Business Lines of Credit, Business Loan
This is where a lender gives you a limit of how much you can borrow, generally for Working capital requirements. You can draw down as little or as much as you need up to that limit for business purposes, and although there is a line fee to have this facility ( business overdraft, business lines of credit, Sunshine Coast business loans) in place, the interest charges are only incurred on the portion that you actually use.
Commercial Property Finance
This is one of Jon’s specialities with 48 years of combined experience in the field, having completed numerous commercial finance proposal for the purchase of commercial property for either business owners seeking an ideal location to operate their business from, or investors seeking the strong yields that a commercial property can offer.
Get the best Commercial Loan
If you are considering the purchase of a commercial property, and want to discuss options around the finance, you need to speak with Jon before making any decisions. With many lenders now restricting the term of the loan to 5 years or servicing these loans over a maximum term of 15 years, there are other options that the major lenders cannot offer that may provide you with an alternative to finance your property over 20 to 25 years.
Franchise Business Loans
Franchise funding or franchise business loan or small business loans Sunshine Coast is exactly what the name suggests; it is where lenders (finance loan brokers) fund people who are opening a franchise (accredited franchisees Australia). Lenders are likely to franchise finance because they have proven that their business model works as opposed to new start-up businesses. In some cases, if a franchise is on a lender’s preferred franchise list, you may be able to borrow up to 50% to 60% of the franchise value.
Management Rights Finance
In Queensland, Management Rights Finance is a common type of business. The management rights financing is for the on-site management business of an apartment building or a unit complex. Loan Wize are management right finance brokers in Sunshine Coast that provide favourable lending and financing options (management rights finance) for prospective purchasers of this type of business. The parameters for this type of finance is heavily dependent on the following:
- Specific details and location of the resort
- Prospective purchasers experience in managing the business
- Overall profitability of the business
Apart from management rights finance lending, we also provide the following services:-
- A complimentary financial evaluation to better understand your financial capability when acquiring a Management Rights business.
- We work to arrange the most suitable finance package for your Management Rights purchase and provide assistance with all of your lending needs (free of charge).
- We are proactive finance brokers that seek purchasing opportunities that might be of interest to you. We also offer business loans Maroochydore area.
Debtor Invoice Finance
Debtor Finance or also referred as invoice finance, we are one of the certified debtor finance companies in Sunshine Coast, queens that give you a percentage of the outstanding invoices, in cash, of what is owed to the business (usually between 80-90%). We will use your business accounts receivable ledger as the collateral. Apart from that, the finance amount also depends significantly on the age and quality of the Debtors.
Benefits of Debtor Financing
- Help companies that have cash flow problems due to slow-paying invoices
- This can be a great way to obtain more working capital to grow your business without the need to contribute more property security.
Self Managed Super Fund (SMSF) Loans
Self-managed super fund (SMSF) loans are offered for Australians who wish to invest their superannuation in a property.
Loan Wize is offering SMSF loans for borrowers who want to purchase a business premise using their Self Managed Superannuation Funds (SMSF) collected funds.
This is a great option for business owners and investors alike, and given the strong yields and potential capital growth in property, this can be an ideal to purchase the next investment property. We work closely with all three major parties/advisers – your accountant, financial planner and you (the lender) – involved when arranging finance of this nature.
Benefits of SMSF Loans
You can borrow to invest in property
Use property income to pay off the loan
Add value to retirement savings
Acquire higher value property
Your assets are secured and protected
Reduce your tax liability
Cost Savings
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