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COMMERCIAL LOANS
Commercial
Funding
Before you rush off to the nearest Bank, talk to us. We provide a holistic approach to Funding and Cash flow management. We offer the following services :
1. Commercial Mortgages Similar to home loans, except the securities are commercial properties. We are now in a position to offer lo-doc commercial mortgages and also ‘asset-lend’ on commercial properties where there is no need to declare an income. Please contact us for details. We also do commercial loans on some specialised properties such as hotels, motels, retirement homes, and farms. Please contact us on a case by case basis.
The amount of information required depend on the complexity of the deal and the risks associated with it. Generally the more information that are provided, the better the chance of an approval on competitive terms.
2. Franchise loans We can offer loans for selected Franchises where the loan to value ratio can vary from 40% up to 60% depending on the type of franchise. Only well established franchises are included in the list. As a guide the minimum value for it to be considered is around $250,000.
3. Construction and Land Development Finance A Developer must have experience and track record in order to qualify for this loan. The Developer should have at least he following items before entering a discussion with the Lender:
Checklist for a Development Loan
4. Debtor Finance / Confidential Factoring Factoring is usually suitable where the business has run out of freehold security and requires quicker turnaround of cash. On presentation of their invoices (usually up to 90 days ) payments up to 80% of the amount is made within 48 hours by the Lender. Used wisely, this additional cash flow can be used to fund growth through purchase of stock which produces additional profit or can be used to secure additional supplier discounts. Funding is usually on an undisclosed basis which means no one other than the client and the lender knows that factoring is being used.
5. Equipment Finance and Leasing We can arrange finance for the following equipments:
Types of equipment finance :
Finance Lease Equipment is owned by the Lender and leased to the user for a set repayment amount over a set term. 100% funding. No equity allowed. Residual Value is based on tax guidelines set at the outset. Whilst the client has no guarantee of ownership the usual case is the lender will offer for sale at the end of the term the equipment at the Residual Value. Repayments are generally tax deductible in full. Hire Purchase Equipment is owned by the Lender and hired to the User for a set period. Can be 100% funding or with part equity contribution. "Balloon payment" can be structured into the deal similar to a lease. Only the depreciation and interest payment is tax deductible. Ownership automatically passes on to the User upon final payment. Operating Leases A lease where the Lender, not the Borrower, is responsible for the residual value. This is an "off-balance-sheet" item which can have some advantages for a company. Sale Lease / Hire Back Where the client owns the equipment and wishes to get their money back by selling the item. Only for special case where goods have been imported or for tax reasons. Cannot be used for capital raising. It has a time limit to it, usually within 3 months of purchase. Equipment Finance Limits Master Leases Where you have a client that has ongoing and numerous equipment finance needs it may be best to set up a pre-approved limit and Master Lease Agreement. This streamlines the process with automatic approval. Similar to a line of credit. Documentation is a one pager. Glenmore Park, Silverdale, Mulgoa, Wallacia, Luddenham, Orchard Hills, Cranebrook, Emu Plains, Blue Mountains, Wenthworth Falls, Glenbrook |