Business Loans

 Business Loans

Do I need a business loan?

⇒Are you looking to kick start you own business?

⇒Expanding your existing business?

⇒Your loan application and business must be strong for lender approval.

How does it work?

Your bank will assess your business loan on the following:

⇒Your business experience

⇒What you are contributing financially

⇒The industry

⇒The property or security against the loan

⇒Each business is assessed on a case-by-case basis.

⇒Housing, mining or construction is considered high risk.

⇒Long term operating businesses with predictable earnings are considered low risk.

What income documents will I need?

⇒Year-to-date income (preferably from your accountant)

⇒Bank statements 

⇒Tax returns

⇒Cash flow forecast statements

⇒Net cash after operations

What if my income statements are rejected?

⇒You can apply for a low doc business loan

⇒You will need a larger deposit and possibly more assets to secure against

How can I increase my chances of a business loan approval?

⇒Prepare detailed information about the financial history of the business.

⇒Create a detailed business plan.

⇒Provide a profit and loss statement.

⇒Cash flow forecast statements - speak to your accountant.

How best to prepare?

⇒Know your key industry indicators

⇒Know your cash flow & profit and loss

⇒Make a business plan

⇒Must be confident and prepared to gain approval.  The banks will not do it for you.

What business risks will the bank assess?

⇒clean credit history

⇒industry experience and knowledge of the trends

⇒experience in running your own business or management

⇒skills in managing cash flow

Do I need an accountant?

⇒An accountant will help you present the best case to the lender.

⇒Will help you decide whether a business loan is right for you.

Will a Guarantor help?

⇒Yes.  Perhaps take a long think about risking a family members assets.

⇒If you default - and many new businesses do - your guarantor will need to pay.

Do banks like lending to businesses?

⇒Yes.  Business loans are generally more profitable and larger in value.

Will I get approved for a business loan?

⇒Your business will be given a rating along a risk scale

⇒A lower rating for a more stable & longer operating business

⇒A higher rating for a less stable or new business

⇒Your interest rate, loan terms & loan features will reflect your business rating.

I'm here to help if you need to know more.

Matthew Stack

matthew@mortgagebrokerrevesby.com.au

www.mortgagebrokerrevesby.com.au

0423 237 242