Business Loans
Business loans are available in many different types to assist your business. Once you have identified the reason your business needs to borrow money, the next step is to match up the type of business loan you need.
If the borrowing cause is short term, for example purchase of stock or pending collection of debtors, then short term financing is what you need. An overdraft facility or line of credit would be the best match.
If you want to buy equipment or your own business premises, then a longer tem loan would be more appropriate. ie: a term business loan or fixed rate business loan.
Detailed below is some of the more common types of business loans available from most lenders.
Business Overdraft
The Business Overdraft provides a fluctuating credit facility to assist with your business cash flow. This can be used to fund temporary shortfalls in cash for stock purchases, wages and other business expenses.
A limit is approved on your business account and you are then permitted to draw up to this amount. You are only required to cover the monthly interest charges. Interest is calculated on your daily overdrawn balance.
Variable Rate Business Loan
Variable Rate Business Loans are taken out over a fixed term with either interest only or principal and interest repayments. The interest rate is variable which means the rate can go up or down over the term of the loan.
They are available as either Business Loans secured by residential property or Commercial Loans secured by different security types including commercial property. The Variable Rate Business Loan is available for most business purposes.
Fixed Rate Business Loan
Fixed Rate Business Loans are taken out over a fixed term with either interest only or principal and interest repayments. The interest rate is fixed for the term of the loan so you will always know what your repayments will be. They are available as either Business Loans secured by residential property or Commercial Loans secured by different security types including commercial property. The Fixed Rate Business Loan is available for most business purposes.
Cash Flow and Invoice Financing
Cash flow is essential for any business to survive and expand. This facility can provide you with instant cash flow by providing access to money you have tied up in outstanding invoices. Instead of waiting weeks or even months to collect outstanding invoices, a cash flow lender will advance funds against your invoices. You can usually get funding within 24 hours of an invoice being approved. Borrowing limits and eligibility are determined by your accounts receivable.
Motor Vehicle and Plant & Equipment Finance
Finance is available to assist you purchase motor vehicles or plant and equipment for your business without the need tie up other business assets or property. A range of finance products are available including leasing, hire purchase, chattel mortgage, novated lease and operating leases.
How we can help your Business
With over 15 years experience in Business Finance, Custom Finance are experts at finding a business loan to suit your needs. We deal with all the major banks saving you the hassle of applying for business finance. If you have existing business loans, we compare your loans against what other banks are offering in the market. You may find that we can save you money or restructure your business finance to better suit your cash flow.
Contact us today to find out how we can help your business.
Short Term Finance
For information on short term finance, please see Caveat Loans, Short Term Loans, Bridging Loans and Second Mortgages
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