Are you purchasing a new business or franchise,
or need capital to invest in a current business?
FAQ for Business Loan Applicant(s)
- How long have you been in business?
- What is your business plan and strategy?
- What is your monthly revenue?
- What will the funds be used for?
- How will the business be affected if you don't receive the funds?
How much can I borrow on a Business Loan? What is a Business loan repayment term like?
If the business acts as a security, bank and non-bank lenders will lend maximum 50% of the value of the business or purchase price of the business excluding GST. Most business loans have a repayment period between 5-6 years and their interest rates are usually 3-4% higher than standard home loan rates. If you have borrowed some money to utilise in the business by offering a residential property in security, lenders generally lend maximum 80% (Owner occupied) or 70% (Investment) of the value of the asset being offered as security.
What documentation do I need for a Business Loan?
- Evidence of business's financial performance and history such as profit & loss statement and assets and liabilities statement prepared by a Chartered Account.
- Business Sale and Purchase Agreement.
- Copy of the Lease Agreement if business is going to operate out a commercial premises.
What can a working capital loan be used for?
- Employ additional resources.
- Purchase inventory.
- Cover payroll.
- Day to day operational costs.
- Unexpected expenses.