If business is grinding to a halt due to lack of cash flow , these are the business loans that can keep the wheels turning. LeaseWorks can structure a business finance solution secured against real estate , to your application to be approved.
- No application fees, no obligation to proceed.
- You won’t be restricted by being tied to the one financier
- We can arrange ‘pre-approved’ business finance for future requirements such as equipment , vehicles etc.
- One-on-one personal service , without being palmed off from one consultant to another.
To cope with fluctuations in cash flow your business may need access to alternate source of funding.
An overdraft facility can be attached to your business account with an agreed overdraft limit. Security is usually required together with a credit assessment of the business viability.The purpose of an overdraft facility is to provide working capital for the business before income is received. It should not be used for capital purchases or long term financing needs. Overdrafts can be secured or unsecured and their fees depend on the credit limit.
A line of credit
A line of credit or equity loan can provide access to funds by allowing the borrower to draw on an account balance up to an approved limit. As long as the balance does not exceed the approved limit, funds can be drawn at any time.
These loans are usually secured by a registered mortgage over a property. You are usually required to make payments to at least cover the interest and fees on the loan.
The main advantage of a line of credit is it’s flexible – like an overdraft it can be drawn as the need arises. It can be used to access funds for working capital requirements. As this type of loan is usually secured against property, interest rates tend to be lower than for overdrafts. However, if you fail to make your payments you can put your property at risk.
Fully drawn advance
A fully drawn advance provides access to funds upfront and is used for funding long term investments such as a new business or equipment that expands the capacity of the business. It is not the same as a short term loan that you would use to help with cash flow and fund the day to day running of the business.
A fully drawn advance is a term loan with a scheduled principal and interest repayment program. These loans are usually secured by a registered mortgage over a residential or commercial property or business asset.
The advantage of using a fully drawn advance for business investment is the interest rate may be fixed for a period, providing certainty and stability for repayments.
Normally we would recommend business equipment finance for equipment purchases and a traditional vehicle loan for cars , secured against the asset itself. However, when funds are needed for cash flow, stock holdings and other constantly fluctuating needs, Business Loans can be arranged at home loan rates. Call Now on (1300) 390 979
If you’re buying a business or looking for finance to grow the one you’ve got then you need a loan which replaces restrictions with freedom and options. LeaseWorks Business Loan facility gives you options of regular repayments mean better planning and control, there’s an interest-only option if it helps, and you can make additional payments and redraw any surplus to suit your business needs.