Things to Know Before Applying For Commercial Finance

Most people in Australia tend to think only in term of approaching their own bank when it comes to arranging funds or finance or their business. Commercial mortgage lenders, asset finance lenders and online lenders are some of the other sources that can be approached to arrange funds at low interest and long repayment period.  This blog focuses on different things that businesses need to know before applying for commercial finance.

What security do you have for the finance?

Lenders, banks or other financial institutions usually require land and buildings as security for the finance, for large commercial funds. In this current economic scenario in Australia, it is very difficult for businesses to get a commercial loan for more than 70% of the value of the loan.

If you are looking for more than 70%, you should be prepared to look for other alternatives. Some lenders in Australia even allows businesses to refinance equipment that they already own, thereby enabling people to release capital into their business.

What is your credit history?

You have to pay lower interest for commercial finance if your credit history is perfect. Similarly, you will need to be applying to a specialist commercial finance lender, if your credit history is not perfect.

Which sector does your application fall into?

Not every lender in Australia is interested in lending businesses across the complete range of business sectors. Lenders are competitive only in the sectors in that they are keen to lend. Asset finance, plant & machinery, land & property mortgages and vehicle are different business sectors in which most of the commercial loan requirement falls in.  

Approach a well-known broker in Australia

In order to avail low-interest commercial finance, it is important that you should contact reliable and reputed brokers as they will deal with lots of lenders covering many different sectors and so can be more efficient in the long run. A good broker like Global Capital Corporation Private Limited will be able to provide help in sourcing of commercial funds for the different loan and more.