Then you may wish to consider specialist lending.<\/span><\/p>\nSpecialist Lenders look at providing finance to self employed applicants and borrowers with credit file issues.\u00a0<\/span><\/p>\nCharacteristics of specialist lending include:<\/span><\/p>\n\n <\/span>Pricing for risk, i.e. the more challenging the borrower, the higher the rate<\/span><\/li>\n <\/span>The borrower is able to \u201cself declare\u201d their income.<\/span><\/li>\n<\/ul>\nThis declaration needs to be supported by either:<\/span><\/p>\n\u2013 A letter from the borrower\u2019s Accountant<\/span><\/p>\n\u2013 Six months BAS Statements<\/p>\n
\u2013 6 months business bank account statements<\/p>\n
\n <\/span>Being a more expensive (rates and fees) avenue of finance<\/span><\/li>\n<\/ul>\nSpecialist lenders will also lend to payout tax debt and credit defaults<\/span><\/p>\nQuite often borrowers will take up a specialist loan for 2-3 years, get their affairs in order and then refinance to a main stream lender.<\/p>\nEnquire<\/button>Bank Bill\/Market Based Facilities<\/h2> It is common that business\/commercial customers are not charged a standard interest rate by the lenders.\u00a0 Most lenders formulate an interest rate by charging a base rate, e.g. 90 day bank bill rate or 3 year swap rate plus a risk margin.<\/span><\/p>\nThe lender assesses your business and\/or the transaction and applies a risk margin to the wholesale rate.<\/span><\/span><\/p>\nEnquire<\/button>Fully Drawn Advances\/Term Loan<\/h2> Standard business\/commercial loans with a loan term ranging from 1 year to 30 years.<\/span><\/p>\nA 15 year term is common within business\/commercial lending whereas 20 to 30 year is the exception.\u00a0 The term of the loan can be based upon:<\/span><\/p>\n\n <\/span>The term of the lease you have on your commercial premises<\/span><\/li>\n <\/span>The term of your franchise arrangement<\/span><\/li>\n<\/ul>\nInterest only terms are available and can range from 1-5 years.<\/span><\/p>\nEnquire<\/button>Overdrafts\/Lines of Credit<\/h2> Flexible lending facilities where the loan proceeds are available \u2018at call\u2019.\u00a0 You may not require all of the loan processes in one lump sum, but provide smaller amounts at varying times.\u00a0 That may be as a result of the peaks and troughs in business activity and\/or how often your debtors pay.<\/span><\/p>\nThe loan process can be drawn down, utilised, paid back over and over again.\u00a0 You only pay interest on the facility you are using at any point in time.\u00a0 Some lenders do charge an unused limit fee.<\/span><\/p>\nA lending facility catering for short term requirements which the lender will want to see drawn down and paid back over and over.\u00a0 If the debt becomes \u201chard core\u201d it should be transferred to a term loan.<\/span><\/p>\nEnquire<\/button>Letters of Credit (LC)<\/h2> An international finance instrument that enables Australian importers to pay for goods they are purchasing from overseas.<\/span><\/p>\nA LC from a reputable, recognised bank is deemed to be solid security.\u00a0 An LC is an international promise to pay note.<\/span><\/p>\nEnquire<\/button>Bank Guarantee<\/h2> Much like an LC, a bank guarantee is a promissory note.\u00a0 Whoever the bank guarantee is in favour of, the bank guarantees to pay them the amount of the guarantee if the client does not pay the funds, or provide their services to a satisfactory level.\u00a0 Bank guarantees are used domestically within Australia.<\/span><\/p>\nBank guarantees are common place:<\/span><\/p>\n\n <\/span>Guarantee the payment of rend of a commercial lease<\/span><\/li>\n <\/span>Commercial developers guarantees to ensure quality product and defect rectification.<\/span><\/li>\n<\/ul>\nEnquire<\/button>Bank Guarantee\/Factoring<\/h2> Many businesses allow their clients to pay of a terms arrangement.\u00a0 That is within 30, 60 or 90 days from delivery of the goods or services.<\/span><\/p>\nThese are the business\u2019s \u2018debtors\u2019.\u00a0 It is not unusual for debtors to not pay the monies owed in a timely fashion.\u00a0 Therefore the supplier of the goods may be owed many thousands of dollars from the debtors who are \u2018tardy\u2019 payers.<\/span><\/p>\nClients experiencing working capital issues may choose to \u2018sell\u2019 their debtors to a lender, who will typically forward to the client up to 80% of what the debtors owe in one lump sum.\u00a0 The lender and the client will then set out to have the debtors pay their monies owed.<\/span><\/p>\nDebtors finance has a vital role to play within the business\/commercial field, but it is an expensive form of finance.<\/span><\/p>\nEnquire<\/button>Merchant Services<\/h2> All of your point of sale credit cards and eftpos equipment and services.<\/span><\/p>\nEnquire<\/button>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":2193,"parent":454,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/pages\/440"}],"collection":[{"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/comments?post=440"}],"version-history":[{"count":4,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/pages\/440\/revisions"}],"predecessor-version":[{"id":2079,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/pages\/440\/revisions\/2079"}],"up":[{"embeddable":true,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/pages\/454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/media\/2193"}],"wp:attachment":[{"href":"https:\/\/betterchoice.net.au\/wp-json\/wp\/v2\/media?parent=440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}