Business Loans
Business loans can be used to fund daily operations, purchase a franchise, to commence a new business or expand the existing one.
Some form of SECURITY is required for this type of loan.
Residential or Commercial Property: Using ones residential or commercial property as collateral a loan amount of up to 80% to 90% for residential property and 60 -80% for commercial property’s value can be obtained depending on the borrowed amount.
Business or Franchise:
If the loan is being used to purchase a existing business or Franchise then the business value can be used as collateral. Example, if it is an accredited Franchise like Video Easy then up to 50-60% of business value can be used as collateral for the loan. This is purely dependent on the lender and is viewed on a case to case basis.
There are many factors that the lender will take into consideration like:
- What is the Loan amount?
- What type of business is it and how long it has been established
- Experience of the business owner relating specifically to that industry
- Location of the business, zone etc.
- Competition in that industry and in the local area.
- What kind of Security offered is offered? Property, business, equipment, tangible assets etc
Documentation Requirements:
Lenders will perform a “Business Risk Assessment” and the borrower needs to forward information that will convince lenders that repayments will be made.
- Minimum of 2 yrs business and personal tax returns
- Profit & loss balance sheet for established businesses
- Business plans
- Indication of income generated by business or by borrower
Interest Rates:
Depending on the results of the Business Risk Assessment and other factors an interest rate will be offered. Needless to say less the risk lower the interest rate.
How can we help?
Give us a call today and arrange to speak with a Golden Touch Consultant who will:
- Negotiate on your behalf to secure the best possible rate
- Will assess your business proposal and forward it to potential lenders
- Discuss all available options and find the one with the best terms and features.