Business Loans

Looking For A Business Loan?

NBS Home Loans has a solution for YOU

What unique perspectives and leverages does NBS Home Loans bring to Business Loans?

  • We have access to over 70 lenders 
  • We have 10 years of business lending experience
  • We have relationships where we have directly partnered with experts at the major banks and work hand in hand with them from idea to settlement

What kind of business loans are there?

  • Literally, there are so, so many – so many variations
  • Mortgages, lending overdrafts, chattel mortgages, lease doc, full doc, margin invoice finance, debtor finance, capital loans, the list goes on and on

What kind of business consider a loan?

  • Varied reasons – growing business, expanding the business, diversifying investment in the future, product development, manufacturing costs, securing premises for trading so you are not paying rent, etc

What kinds of documentation do I need to seek a Business Loan with NBS Home Loans?

  • Ideally tax returns, financial data including cash flow analysis, financial forecasting and ATO portals
  • Startups require a sound business plan that includes cash flow analysis, cash flow forecasts and feasibility forecasts in some cases.  There must be an evident and sound business case to secure a business loan for a startup/new business.

 

What We Offer In Business Loans, Advice And Support

The Answers You Need To Decide A Business Loan Is Right For You

What is a business loan in your own words?

  • A business loan is a loan that is used for commercial purposes, whether it be for business capital or purchasing assets for the business name.

Are business loans difficult to be approved with banks?

  • It depends
  • Every business is unique and business loans tend to have varied purposes so in some cases it can be.  Other cases are easy to get through
  • Most banks finance business loans over shorter periods such as 15 years and require higher repayments which require a business to have larger cash flows than a consumer mortgage and also pay higher rates as a general rule

Is a business loan a better solution than a bank overdraft and why?

  • Bank overdrafts tend to start at anywhere to 8-20% for interest rates
  • Business loans attract a 4% + interest rate, which is much lower
  • Business loans run for a set term and end
  • Overdrafts are a line credit; there is potentially no end to the debt
  • Overdrafts are more to manage cash flow and should be discussed with a financial planner, not a broker

Are there different tiers of business loans?

  • Different sized business loans require different specialists at the banks
  • Also when lending exceeds a million dollars they are subject to annual reviews via the bank as well
  • Who deals with you is based on who can handle the type and size of the loan at the bank – their point of view or who to approach for the loan
  • ANZ for example: you would see one kind of loans specialist up to $300k value of a loan; for $300k-$1mil another specialist and loans over $1 mil another specialist
  • Banks also have business sector specialists – childcare, for example, goes through a different specialist as opposed to doctors who are referred to another dept, manufacturing to another specialist. and so on
  • As a general rule, banks limit the lending specialist who deals with the client to ensure that they have a more qualified specialist looking after the client that presents in front of them and to better understand their business

What kinds of securities and guarantees are required for business loans?

  • As a general rule, bricks and mortar security are unsecured options
  • Assets such as a car or equipment
  • In almost all cases you require a “Directors Guarantee”
  • Valuation of business – in some cases, the valuation of a business asset – for example a fit out may be able to be used to secure finance
  • Guaranteed cash flow, accountancy and financial planning businesses can use their “books” as an asset – examples are an accounts book, financial planning books, loan books, commission trails, etc
  • Banks consider the income level in this respect

What kind of fees are involved with NBS Home Loans for Business Loans?

  • It ranges from smaller fees up to $10k
  • Fee structures can be as varied and complex as the product options
    Are there any other fees I should know about?
  • Brokers may charge a fee depending on the complexity of the business loan

Business Loans for Small Business

Are you growing, ready for the next step?

Business Loans For Premises

Need to expand to accommodate staff?

Business Loans For Assets

Need machinery or products to grow in market?

Business Loans For Cash Flow And Business Growth

Job Rich, Cash Poor?

What are the complaints people have about dealing with banks for business loans?

  • Banks are ruthless with fees
  • Ruthless with charges
  • Ruthless with assessment criteria
  • Ruthless Annual Reviews

What kind of Credit Score can you work with to secure a Business Loan for a client and how do you qualify for a business loan?

Anything above 600 average as a credit score.  Generally between 0 and 1200.  When scoring for younger people we don’t expect such a high score.  Age influences the overall credit score, usually anything over 400 we can work with however credit scores do not influence the outcome of business loans as much as the outcome of consumer loans

People ask frequently “How can I get business loan from Bank?”

It is always a unique question, i.e., for each business, there are so many variables it is truly a case by case assessment – includes forecast cash flow security, etc (answered above)

Which loans are the best?
There is no correct answer, again, case by case,.  Types of loans needed and that can be applied for are unique to client circumstances

Loans For New Business

New to business and need financing?  We can help.

Are You Growing and Expanding in Market?

Whether it is product development, equipment, a new premises, we have a business loan to fit.

Requirements And Facts About Business Loans

NBS Home Loans, Your Business Partner, Working Together With You To Help You Grow

What kinds of securities and guarantees are required for business loans?

  • As a general rule, bricks and mortar security are unsecured options
  • Assets such as car or equipment
  • In almost all cases require a “Directors Guarantee”
  • Valuation of business – in some cases, the valuation of a business asset – for example a fit-out may be able to be used to secure finance
  • Guaranteed cash flow, accountancy and financial planning businesses can use their “books” as an asset – examples are book accounts book financial planning books loan books, commission trails, etc
  • Banks consider the income level in this respect

Are business loans the best solution for cash flow issues in small and medium business (even large business)?

  • Again no.  The answer is always unique to the business but not recommended.
  • Again, you should always consult a good and professional, recommended financial planner or accountant

Business loans have two main categories, secured and unsecured, please explain these and the pros and cons.

  • 1. Secured – tend to have security for bricks and mortar and equipment
    • They attract lower interest rates and setup costs
  • 2. Unsecured – attract high-interest rates and setup costs
    • Security is Bricks and mortar security like a house, property
    • Commercial property (industrial comes under commercial) as in warehouse or store or residential property are used as security for unsecured loans

How does a business achieve growth with business loans?

  • By using the funds to invest in the business to offer more services or to offer greater reach or hire staff to generate more income
  • Income-generating aspects should be heavy in consideration in regards to business loans; they should generate and increase income and also generate income previously unavailable because the business was lacking the capability
  • A business loan can increase capability for profit and growth

Are business loans used for stock and inventory acquisition for business growth?

  • Can be – especially unsecured lending because you will get a shop just started up selling stock faster than stock shelves can be replenished.  Turnover cash flow issues can prevent stock ordering to replenish shelves, small unsecured loans can stock shelves; more stock means more sales can happen
  • Customer rich inventory, poor scenario
  • Business loans can also pay the procurement of admin staff to optimise workloads and bring in efficiencies like time reduction in the sales funnel and sales processes, data processing, fielding enquiries, converting leads to sales, etc

Loans For Small and Medium Business

Are business loans the best solution for cash flow issues in small and medium business (even large business)?

  • No.  The answer is always unique to the business but not recommended.
  • Again, you should always consult a good and professional, recommended financial planner or accountant.

How does a business achieve growth with business loans?

  • By using the funds to invest in the business to offer more services or to offer greater reach or hire staff to generate more income
  • Income-generating aspects should be heavy in consideration in regards to business loans; they should generate and increase income and also generate income previously unavailable because the business was lacking the capability
  • A business loan can increase capability for profit and growth

Are business loans used for stock and inventory acquisition for business growth?

  • Can be – especially unsecured lending because you will get a shop just started up selling stock faster than stock shelves can be replenished – turnover cash flow issues can prevent stock ordering to replenish shelves, small unsecured loans can stock shelves; more stock means more sales can happen
  • Customer rich inventory poor scenario
  • Business loans can also pay the procurement of admin staff to optimise workloads and bring in efficiencies like time reduction in the sales funnel and sales processes, data processing, fielding enquiries, converting leads to sales, etc

Who Are Business Loans For?

What are the customer avatars of business loans?

  • Established businessmen and entrepreneurs
  • A young kid from the UFC gym
  • A young lady who  bakes from her own kitchen industrial oven
  • A client that makes protein balls to sell B2B and B2C
  • A Strata management company
  • Builders
  • Lawyers
  • Accountants
  • Young entrepreneurs seasoned veterans close to retirement
  • 80 year old who manufactures and sells makes blinds
  • The list goes on…

New Business Loans

Do new businesses qualify for business loans and should they use them to commence trading?

  • With the right projections, forecasts and business plan, yes.
  • With security, yes.  
  • Business lending is telling a story vs looking forward telling the probable story with a good outcome rather than looking back (especially if that business is new and there are no trading history financials

What are the impacts on bank-speak and do people constantly sign loans they do not understand and get into trouble?

  • More than half the time
  • They get locked into a product which is not the right product
  • End up paying too much for a product because they were bamboozled by a ‘good’ introductory rate
  • Did not consider the fees and charges associated
  • People “land” in the product and discover it is not flexible to their needs later on and does not grow with them

YOUR BUSINESS LOAN CONSULTATION IS FREE

We have a team of expert finance brokers all focussed on winning you the best business loan to suit your size, appetite and need.  And we’re here for the long run.  We will partner with you to help grow your business into your future and beyond.

Managing Your Business Loan And What Is Possible

NBS Home Loans, Your Business Partner, Working Together With You To Help You Grow

Are business loans the best solution for cash flow issues in small and medium business (even large business)?

  • At times.  If it has run the full term then no. If there is a period of time left on the loan term before it ends possibly
  • With something that has a renewal aspect will renew or won’t
  • If not renew find funds to pay off or clear and find a bank who will fund it
  • As a general rule, banks are reluctant to  renew terms when a business is in trouble

 

Is it possible to use a business loan to pay another business loan and is this recommended?

  • This is called Debt Consolidation when you combine in to one loan
  • Only if it has a benefit to the client – lower interest rate, the lower monthly cost.
  • A lot of clients will refinance a commercial loan when their interest-only period ends to renew or start a new interest-only period because they have no intention of paying down debt or do not wish to start paying down that debt at that point of time

How does a business achieve growth with business loans?

  • By using the funds to invest in the business to offer more services or to offer greater reach or hire staff to generate more income
  • Income-generating aspects should be heavy in consideration in regards to business loans; they should generate and increase income and also generate income previously unavailable because the business was lacking the capability
  • A business loan can increase capability for profit and growth

Are there any flexible business loans to allow me to repay more when my business is profiting more and repay less when business is quiet?

  • Yes, most business loans allow for additional payments regardless usually a minimum contractual repayment amount is required and non-noegtiable

What happens if I can’t meet my repayment schedules for my business loan?

  • Talk to the broker and bank as soon as possible and put a solution into place before it turns into a bad debt

What are the common issues people encounter with business loans in your experience?

  • Asking for the loan when they are in trouble rather than at the planning stage

Secure Your FREE Consultation NOW

We can visit you at a time convenient for YOU.  After hours?  Yep!  Sure!!!

Secure Your FREE Consultation NOW

We can visit you at a time convenient for YOU. After hours?  Yep!  Sure!!!

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