Welcome to our new monthly newsletter where we keep you informed with what’s going on in the Commercial Loan markets and funding that may be available to you.
A business owner walks into a bank…Don’t. Just don’t.
Dealing directly with a single bank exposes you to more than that bank’s products and risk policies. Once a business owner is rejected most will give up and think they’re not bankable. Nothing can be further from the truth. We have access to many commercial lenders and not all of them are banks. If you want secured lending (usually by property) there are rates available from around 4%.
Unsecured lending is available to businesses with a strong cash-flow and track record. These rates are obviously higher but they fluctuate depending on demand/supply. They generally start at around 10% sometimes lower sometimes higher.
We have funders now that are willing to fund a receivables book – from $5M and up. So, if you’re in that space we’re happy to help. Funding with insurance starts from as low as 10% and climbs as the risk does.
Yes, we do property projects – doesn’t every broker? Obviously rates will vary depending on risks. So, run your scenario by us and you’ll get an independent assessment as to where you’ll be able to get funding in the current climate.
Borrowing for Business Against Your Property
If you’re with a bank that insists on taking security over every single property and other asset that you own, you need to re-assess your borrowing. Talk to us about doing a quick health check on your business borrowings. You may be paying far too much.
Borrowing in Your SMSF?
Beware of Ongoing Lending Policy Changes at Banks Most people think you can borrow for residential property as you do for a home loan. There are differences such as lower LVR’s for SMSF’s and higher pricing. You also need to ensure you are contributing to the SMSF for servicing calculations to be valid. Pricing for residential lending in an SMSF starts at around 5.50% but the rates will vary depending on the lender and risk profile of the lend.
Triple Threat For Interest Rates
The days when interest rates are dictated by the RBA appear to be over – at least for now. During the month, a few financial earthquakes occurred. This is the topic of this week’s article. Click here to read on.
So, if you’re confused by all of the above or you just want to have a chat, call us and we’ll steer you in the right direction. If you’re un-bankable, we’ll tell you.