INVESTOR ID #229
Minimum loan amount: $25,000
Maximum loan amount: $500,000
Financing Sector: Business Acquisition Finance
Repayment method: Principal & interest
Repayment term: 24 months
Repayment frequency: Monthly repayments
Loan collateral: Property Secured
Loan guarantee: Owners
Minimum monthly revenue: $25,000
Maximum accounts receivable as a % of monthly revenue: 250.00%
Minimum years in business: 1 - 2 years
Business sector: All business sectors
Variable interest rate: 8.50%
Loan establishment fee: 1.25%
If you are starting or getting into business then it is likely you’ll need a business loan
Starting a business
You may not want to be working for someone else all your life, and have decided you want to start or buy your own business, in most cases you need to have the funding to make this happen. The loan will usually depend on what kind of business you plan to operate, your available funds, your assets, your skills and business plan plus your ability to service the loan. Funding new ventures is always more difficult as there is a high level of risk attached. Besides the usual family, friends and acquaintances, there are investors that will look at well structured and thought-out new business ventures. Unfortunately many Banks will be very cautious when it comes to funding a new business venture due to the risk attached.
Buying a business
Buying an established business is always safer than starting one from scratch. Having a proven business model, a financial history and a customer base with cash flow reduces the risk to lenders. Banks will be able to review the last 3 years financials, see any trends, and ascertain if you, your projections and the business are a suitable to lend on. The amount lent will usually be limited to the collateral you can provide and your ability to repay the loan. The larger the loan, the more security required and the greater the repayments need to be. When applying for finance always consider your working capital needs, as this too will need funding.
Growing your business
Businesses seldom stand still, and with growth will often need additional capital for plant and equipment. Growing a business however is not easy, as more staff put pressure on your cashflow and it can be difficult to fund expansion out of cashflow. It can take a long time to save up sufficient money to grow your business, so a small business loan is required. Often this can be done through your bank, or by having the plant or equipment funded buy a specialist in that area.
Securing a business loan
BizFinance is here to provide you with an easy, confidential, and convenient means of sourcing and securing business finance at the best possible rates while putting you in control. With many years of commercial banking experience and know-how, Financial Service Providers shop key lending institutions to get you the best possible deal on your finance, while working to minimise your costs and bank fee.