What is a Commercial Loan?
A commercial loan is money loan granted to a business entity. The most common reasons why a business would take out a commercial loan include
- To expand business operations
- To acquire real property
- To purchase supplies and inventory
- To raise working capital for day to day operations
- To purchase machinery needed by the business
Most commercial loans are short term, in that they have a relatively short maturity date. However, some lenders offer a renewable loan, where after repaying the balance or an agreed amount, the loan is renewed for yet another period. A renewable loan ensures your company of a steady stream of working capital, to fund payroll requirements or meet large seasonal orders.
Your creditworthiness is an important factor lenders look into before granting your commercial loan application. A person with a low credit score or no credit history may find it hard to get a loan approval. However, some specialist lenders are in the business of granting no credit or bad credit commercial loans.
How is your cash flow? Before approving your loan, your lender will want to know whether you are capable of generating enough cash to cover the costs of day to day operations, payroll, rent and monthly loan payments.
Another important consideration is the fair market value of your property. The lender will conduct an appraisal to determine whether your property has enough value to guarantee the loan.
As you can see, getting a commercial loan is not always easy.
But help is available.
If you are determined to get a loan, we can help.
Benefits of an Approved Commercial Loan
Now, despite the many requirements, the rewards of an approved commercial loan are immense. Here are the most important benefits of an approved commercial loan.
Maintain ownership and control of your business
A commercial loan gives you a breathing space to get the cash you need for your business. So selling or giving up control of your business makes no sense when a commercial loan is available. It can give you a new lease on life by allowing you to retain ownership and complete control of your business.
Improved cash flow
The most common problem of small businesses is insufficient working capital. This is where commercial loans come in. With a minimal down-payment, a reputable commercial loans company can arrange an easy repayment scheme tailor-fitted for your unique needs. With an improved cash flow, you gain the flexibility needed to invest your money where it will yield the most returns.
Expand your business
If you are thinking of expanding your business, chances are you already have the money you need for expansion. But a larger business and wider market reach could easily deplete your working capital. This is where you need extra funding. Taking out a commercial loan will help you maintain a healthy cash flow to take care of day to day operating costs plus unexpected expenses.
One of the advantages of obtaining a commercial loan is that many lenders offer very competitive interest rates.
At Commercial Loans, we can connect you with Australia’s top commercial loan brokers who can tailor a solution that works best for your financing needs and help you obtain a loan approval.
There are many reasons to consider refinancing your commercial loan but whatever your reason we’ve got you covered! At Commercial Loans we will connect you with one of Australia’s top commercial loan brokers who will assist you in obtaining a finance approval at a highly competitive rate.
Whether it’s to free up capital to acquire new plant and equipment, fund the deposit to purchase other commercial or residential real estate or simply to reduce your interest rate to improve business cash flow, our brokers understand the requirements of Australian business and can tailor a solution to meet your needs large or small.
Some of the solutions we offer are:
- Lending up to 80% of the property’s value or 100% with additional security
- Create working capital
- Expand operations
- Purchasing new machinery or equipment
- Purchase of real estate, both commercial and residential
- Leasehold Improvements
- Speak directly with one of Australia’s top commercial loan brokers by clicking on “Get a Quote” below