Need a Mortgage Broker for a Business Loan?

If you are looking to grow your business, need help with cash flow or are finally starting your new business First Choice Mortgage Brokers can help!

With over 20 years’ experience in business financing, our expert consultants can source the best business loan for your needs, as well as provide financial guidance and advice for profitable business operations.

Please call First Choice Mortgage Brokers to discuss your business loan opportunities and for any assistance in accessing the business loan application process. If you have any further questions, our staff are highly qualified to give you exceptional financial advice Sydney.

Business Loans FAQs

What is a Business Loan?

A business loan is a sum of money borrowed from a lender specifically intended for business purposes. Alike all loans, in exchange for the business funding, interest is charged on top of the loan amount. Typically, business loans are paid back over an agreed amount of time, with regular repayments.

Business loans can be used to pay for anything the company cannot cover at that moment, such as:

  • Purchasing, renovating or expanding the business property.
  • Investing in new company equipment, machinery or technology.
  • Start-up costs to launch the company in its early stages, e.g., salaries or advertising campaigns.
  • Improving short-term cash flow.
  • Hiring more staff.
  • Purchasing stock.
  • Paying off existing money owning to contractors, retailers or other business associates.

Business loans charge interest rates differently from other forms of loans – they charge a risk margin depending on how the lender perceives the business’s chances of success. Plus, there are additional fees associated with business loans in addition to interest charges. Learn more about the fees associated with business loans with the First Choice Mortgage Brokers.

First Choice Mortgage Brokers consult small, medium and large businesses one-on-one about business finances, with our client’s interests always at the centre. Business loans can differ a lot between suppliers – in terms of amount, terms, interest rates, fees and security – so it is best to closely review all financial products with a mortgage broker before applying.

Take the guesswork out of choosing your business loan with First Choice Mortgage Brokers! We will compare all loans for small businesses currently available on the Australian market to find the best loan for your unique situation.

How Does a Mortgage Broker Help with Business Financing?

First Choice Mortgage Brokers have the expertise and skills to help you grow your company and advise you on the best financial options for your objectives, as well as help fund your business equipment and vehicles.

The most significant benefit of using a First Choice Mortgage Broker for your business financing is that an experienced mortgage broker will compare multiple options to find you the best business loan. Your mortgage broker at First Choice will take the next step and apply for your loan as well as any other financing paperwork from equipment loans to investment loans, making the whole process a lot simpler for you.

With so many banks providing various finance applications, arrangements, and repayment plans, it can be challenging to choose the right one for your business. It is wise to get impartial counsel before making a decision, and this is where First Choice Mortgage Brokers can assist.

It is important to note that when you sign a business loan directly with a bank, you only have access to that particular bank’s products and services. Dealing directly with a bank will limit your options.

Instead, First Choice Mortgage Brokers have access to a panel of lenders that sell hundreds of different items. Better still, your mortgage broker will help you sort through the different solutions to find an agreement tailored to your specific financial position and help you apply appropriately.

How Do I Qualify for a Business Loan?

When you apply for a business loan, the lender will use a variety of considerations to decide if you qualify for the business loan or not. In general, there are six important characteristics lenders consider when evaluating your businesses’ eligibility for a business loan., if you are approved, these same factors will be used to determine your loan’s terms and costs. First Choice Mortgage Brokers can assist with your application progress to give you the best chance to be qualified for a business loan.

Personal credit: Lenders will nearly always be concerned in your company credit., but also to your personal credit as the two
are inextricably tied. It is fair to say they’ll want to look at your personal financial wellbeing as well, including your current
credit card balance, credit history, billing history, and amounts owed.

Proof of Individual Income: Since your personal and business accounts are intertwined, your personal income will foster the
lender’s attention. If your financial situation is in good shape, expect lenders to see you as a lower risk and be more willing to
partner with you.

Certification: Your business must have a valid ABN to receive a business loan.

Business debt coverage: Having debt in your company isn’t an issue. The dilemma is whether or not your company will be
able to meet its debt obligations. An investor evaluates your cash balance and interest payments to get a sense of your
corporate debt coverage.

Business Details: Your loan is more likely to qualify if the business has existed for more than 12 months, has a healthy level
of revenue, and operates within a lower-risk industry where financial less is less possible. Lenders are more cautious when
the business is within high-risk sectors like property, mines, and manufacturing.

Guarantor Contribution: Even if you can prove your company’s profitability, certain lenders may require a loan guarantor. A
guarantor is an external party who if you can’t afford your repayments will reimburse the loan you have borrowed. No
matter if a guarantor is a requirement or not, having one will give your application a better chance of being approved, as
essentially, a guarantor ensures a loan will be repaid.

What are the Different Types of Business Loans in Australia?

Before you meet with a mortgage broker, it is important to understand Australia’s common types of business loans. So, when it comes to applying, you can rest assured knowing you have considered all the financial options available.

Line of Credit: is an on-demand type of business loan that offers funding by allowing the company to draw on an account
balance up to a predetermined amount. These loans are very adaptable and are often used to cover unexpected cash flow gaps
or finance smaller capital needs. Often paid back quickly, the interest rate on a line of credit is likely to be lower than on an
overdraft. However, failure to make payments will result in repossession of the protected asset.

Business Term Loan: is a lump sum loan to cover larger, one-off expenses. A business term loan or business fixed-rate loan is
funding aimed at financing long-term strategic acquisitions that increase the company’s earning capacities, such as new
equipment, real estate or working capital. A business term loan is typically arranged over a fixed period with regular
repayments and backed by a mortgage on a residential or commercial property or another appropriate asset.

Business Overdraft: allows the account holder to continue withdrawing money after the account has no funds. A business
overdraft is a roll-over loan that connects your business account with a pre-approved overdraft limit to use for business
expenses. The overdraft facility provides working capital for your business before you receive income.

Commercial Bill or Bill of Exchange: is an unsecured business loan, for short-term financing needs, such as inventory. You
can get a lump sum advance with monthly interest payments, with the remaining balance is due at the end of the year.

Development Finance: is a loan used exclusively for comprehensive renovations or new building projects of a business site
and/or land, which will profit the business eventually. In most cases, this relates to apartment buildings and commercial
premises.

Fully Drawn Cash Advance: is similar to a business term loan which provides immediate access to funds for long-term
investments. For example, the funding can be used for business start-up costs or equipment to increase its capability. A
completely drawn advance allows a fixed interest rate for a set amount of time.

Factoring: also known as debtors finance and accounts receivable finance, is the process by which a factoring firm purchases
your businesses outstanding invoices at a discount. The loans are then pursued by the factoring firm. This is a fast way to
obtain cash. However, it can be more costly than conventional forms of financing.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

make an appointment