Secured Small Business Finance for SME’s
“Our team understand the highs and lows of business”
Finding the right finance option for your business to grow can be tricky as there are hundreds of lenders available and trying to choose the right one is extremely difficult and time consuming.
We recommend the absolute best small business loan that will help you start or grow your business without committing to ridiculously high interest rates or other negative terms and conditions associated with the loan.
Loans and Options
“Guiding you around the myriad of options is our specialty”
Business Line of credit.
Working Capital loans.
How is your application assessed and what banks are looking for?
“where can you find us…right by your side”
Behind the scenes all bank assessment teams have guidelines, ratios and formulas they use to assess your application, as well as the required paperwork. Banks look at 4“C” s of Credit. These are briefly explained below:
This refers to your credit track record for repaying debts. This information is extracted from credit reports such as Equifax and Veda. With Comprehensive Credit Reporting (CCR) the banks can obtain an up to date report which details a complete picture of your credit profile. Most banks have a minimum credit score requirement, if this is not met, then the loan will likely be declined.
This measures your ability to repay the loan by comparing future and current debt obligations against income. This is referred to as Debt to Income Ratio The lower the debt to income ratio the better. As example of this is below. Debt commitments $28,667 a month divided by average gross monthly income of $68,667 the DTI would be 39.5%. Bank like the DTI to be less than 40%.
This is the amount of “Hurt money” you are willing to invest. Whether it be cash or collateral this is your commitment to the success of your business. Each lender will apply their own Loan to Value ratio (LVR). Basically, an LVR is calculated by dividing the amount of your loan into to the value of the security. The calculation is as follows: security (in this case a residential property) valued at $800,000, loan requested $500,000 then the LVR would be 62.5%. generally, banks like to have an LVR under 80%, however this is dependent upon the loan purpose.
Conditions of the loan refers to the loan purpose, which basically is how you intend to use the funds. A bank would be more likely to approve a loan for a specific purpose, rather than just providing funds that could be used for anything. Other factors to be considered would be the interest rate, amount of the loan, the term and how the funds will increase profitability or advantage the business. Additionally, banks will consider conditions that are outside of the borrower’s control, such as the state of the economy, legislative changes and effects of Covid 19.
Qualification and documentation
“There is an art to compiling a successful application, lucky for you, we know our stuff”
“It is imperative that we get to know your business thoroughly. The more understanding and knowledge we have of your business the more we can help. A well-presented application is the key, this is where we excel”.
So let’s make it happen…if you have:
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