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5 Things You Need to Know about Commercial Finance

As one of Australiau2019s leading and most-trusted providers of investment facilitation and services Global Capital Commercial (GCC) act as the bridge between our investor partners and borrowers seeking a loan product to match their commercial needs.

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5 Things You Need to Know about Commercial Finance

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  1. 5 Things You Need to Know about Commercial Finance

  2. Most people, especially "first time buyers", tend to think only in terms of approaching their own banks when it comes to arranging finance. There are, however, other sources. There are Commercial mortgage Lenders, Asset Finance Lenders, Lenders that specialize in factoring/invoice discounting, lenders that can provide finance about on existing pensions, refinancing of existing commercial finance and much more. Also consider a personal loan or mortgage.

  3. What Security do You have for the Loan? For large commercial loans, commercial finance lenders usually require land and buildings as security for the loan. In the current economic climate it is very difficult to get finance for more than 70% of the value of the loan - although in a very limited number of cases - not impossible! If you are looking for more than 70% - be prepared to look for other alternatives. For smaller loans, vehicles, plant, equipment etc. may be acceptable. Some lenders even allow you to refinance equipment that you already own thereby enabling you to release capital into your business.

  4. Which Commercial Finance Sector does Your Application Fall into? Not every lender is interested in lending across the complete range of business sectors. They are competitive only in the sectors in which they are keen to lend. For example, land and property - mortgages, vehicles, plant and machinery - asset finance. You should therefore decide which business sector your requirement falls in.

  5. What is Your Credit History? The better your credit history the lower the interest rate that you will have to pay. If your credit history is not perfect (and in this current credit crunch very little is being seen as perfect credit history) you will need to be applying to a specialist commercial finance lender.

  6. Approach a Lender Direct or Use a Broker When obtaining a commercial loan, the Lender usually charges a fee for providing the loan. If you decide you use a Broker then the Broker will also usually charge a fee for arranging the loan. Whilst the natural reaction is to approach Lenders direct, a Broker will deal with lots of lenders covering many different sectors and so can be more efficient in the long run. A good Broker will be able to provide help in sourcing of finance for all of the above loan and more.

  7. Address: Level 43, Governor Phillip Tower, 1 Farrer Place, Sydney, NSW 2000 Telephone: 1300 011 211 Int Telephone : +61 2 9222 9100 Email Id: info@globalcapital.com.au Website: https://www.globalcapital.com.au

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