Business Lending could help your business through a degree of financial hardship. It can also give new started businesses a kick-start with capital boost. Below are 8 types of lending that Kowloon can help you with. Contact our Financial Expert HERE, or Directly Lodge an Application through the button below and we will do the rest for you.
Types of Commercial Loan
Buying a property for business use, or a franchise
The loan term and type will depend on the LVR and the nature of the asset being purchased. These loan are similar to residential loans, but terms are usually shorter and may be restricted to 5, 10 or 15 years.
Equipment/ Asset finance
This type of loan will use the goods purchased as security. Securities like motor vehicles, plant and equipment, green/energy assets and tertiary asset etc. are also under this categories. You should note the variance in the tax treatment of these finance facilities, and seeking advice from tax accountant prior might be ideal for you.
Invoice Finance
Invoice financing is a way for businesses to borrow money against the amount s due from customers. The advantages of this financial tool is to have cash sooner rather than having to wait until customers paid their balance in full.
Lending for Insurance premium (Workers Comp, General Business Insurance, Professional Indemnity)
Commercial Insurers do not generally offer monthly repayment options on annual policy premiums. This could substantially tighter your cash flow when multiple business Insurance premiums are due. This provide allow you with extra cash flow with no additional security required.
Trade Finance
This financing tool is used for International import/export of goods and services. It provides the seller with surety of payment and the purchaser with guaranteed supply.
Unsecured Business Loans
As named, this product requires lower level of documentation for approval, it may only require recent bank statement. Another advantage of this product is the time required for approval is much shorter in comparison to other products. However, the interest rate associated with these products may be SUBSTANTIALLY higher than alternatives.
Overdraft
An authrorised limit attached to a business’s operation account. Mortgage security is usually required for these type of loans. These loans are ideal to provide working capital to cover the operating cash flow cycle of the business.
Line of Credit
This product allows you to draw on an account balance up to an approved limit. Line of Credit is similar to Overdraft, but drawdowns are typically larger and more infrequent as drawdown fees may be incurred. Commonly used to fund medium term working capital requirements.
Disclaimer: Commercial Lending is an implementation process. It’s recommended that all business owners to seek advice from Accountant or Financial Planner prior applying for a loan.