Business Finance Products

Australia's leading source of commercial finance information

Last updated 01 Mar 2019

Your business's financing needs will vary as your company grows and evolves. A business finance broker will analyse your company's current operations and financial situation as well as it's future prospects to find what types of equity or debt finance best suits your stage of development.

For instance, start-ups and smaller businesses can access loans that do not require collateral or a long operating history such as unsecured business loans or personal loans for business. A more established business, however, could fund itself through loans secured by inventory or property and also potentially monetize invoices with the use of debtor finance. Any company involved in trade or overseas investment will also need to take advantage of trade finance to reduce risk and currency exposure.

Browse our list of the more common types of business finance below and click on them to learn more. Alternatively, contact us and one of our brokers will help you find the best business finance for your company.

Unsecured Business Loans

A business that cannot provide a bank with collateral such as property or inventory may opt for an unsecured business loan. Ideal for a short term loan that you plan to repay quickly, approval speeds are often fast and uncomplicated. Read more

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Secured Business Loans

A traditional secured business loan is a loan where you borrow a lump sum and the lender takes collateral in the form of property, equipment or inventory. Often the least expensive form of loan finance, secured loans can also be longer term. Read more

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Personal Loan for Business

A business owner can take out a personal loan for business use. Ideal for start-up finance or companies lacking operating history, the owner will pledge personal assets such as his home as collateral. Read more

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Business Line of Credit

A business line of credit or overdraft facility is a standing approval to draw down on finance from your lender as and when you need it, only paying interest on the amount actually borrowed. Read more

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Debtor Finance

Debtor finance allows you to use your invoices as collateral to gain access to your sales revenues faster. You can borrow around 80-90% of the value of your invoice, avoiding the costs of late/delayed payments. Read more

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Trade Finance

Trade finance refers to the financing of goods and services used in international trade. This may be in the form of a letter of credit, debtor finance or other business loans. Read more

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Finance Lease

In a finance lease contract, the lender owns an asset and allows you to use it against a monthly payment. You may be able to purchase the asset at the end of the lease. Finance leases are popular for commercial vehicles. Read more

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Hide Purchase

A hire purchase agreement allows you to hire an asset while you are simultaneously purchasing it over time through regular installments. By the end of the term of the hire purchase agreement you will own the asset. Read more

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Chattel Mortgage

In a chattel mortgage or equipment loan you take immediate ownership of the asset and pay it off over time. Payment installments are a combined interest and principal. Read more

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Property Finance

Commercial property loans are used to finance the purchase or development of business premises, factories, commercial or residential property projects and developments. Read more

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How a Broker Helps You Navigate Business Lending

Why Should You Use a Broker?

Access to timely and adequate finance can be crucial to your business' growth and success. Financial flexibility allows you to take advantage of investment opportunities, build stock levels and also weather any short-term setbacks or cash shortfalls.

According to the Reserve Bank of Australia's September 2018 bulletin, less than 20% of small businesses find it easy to access finance. The bulletin goes on to identify key issues including (1) the difficulties to secure finance for start-ups, (2) banks' reluctance to extend credit without real estate collateral and (3) lengthy and onerous application processes. As a result, according to the Australian Bankers' Association, 30% of small businesses have no debt at all (including credit cards) and do not access debt facilities.

The key advantages of using a business broker are;

Expert Advice

An experienced broker will sit down with you to understand your business and finance needs and will use their knowledge of the marketplace to locate the type of funding best suited to your situation. We work with brokers with many years experience of the Australian funding markets. We also request that all our broker partners to adhere to the Broker.com.au Code of Conduct which we believe to be aligned with the best practice in the industry.

Risk Based Pricing

Risk based pricing means when someone provides you with finance, they will price is at a level which reflects the individual risks associated with your situation. Unlike a residential property mortgage, which represents a relatively standardised risk profile, business finance pricing can vary considerably. For this reason, an experienced finance broker can provide significant value in helping you navigate an often opaque and unstructured landscape. A professional can give you access to a level of market intelligence which is often simply not available online or through public information sources. By working with a finance broker, you can leverage their extensive relationships and expertise to ensure the risk of your financing is priced at the most competitive level available in the market.

Complex Market

The Australian lending market is large and diverse. There are 32 domestic Australian banks, 7 Foreign subsidiary banks and 58 building societies and credit unions. In addition, Australia is the second largest alternative finance market in the Asia Pacific sized US$610m in 2016. Alternative lenders operate under different regulations than banks and may be more flexible in providing loans to younger companies with less pristine credit records. There are also small consortiums of wealthy individuals who pool money and look for high return equity investments or loans. An expert broker will keep abreast of this rapidly changing environment and know who is lending at the moment and which finance company is most suited for your needs.

Save Time & Money

A professional broker will ensure that you only apply for loans that you are eligible for, and are likely to be approved for. Having a broker on your side who will help you negotiate the price of the loan and can reduce the overall cost of the loan. Your broker will also ensure that you are aware of all the legal terms related loan that you are committing to. You avoid filling out unnecessary, time-consuming and ultimately unsuccessful loan applications. The time and money saved allows you to focus on what you enjoy - running your business!

In summary, the key to finding the best finance for your business is to fully understand the options available to you. Let Broker.com.au assist you in finding better, cheaper and faster finance.

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Loan Application Checklist

A broker or lender will ask you questions to understand your borrowing needs and ability to pay. The answers to these questions will help determine the type of loan and lender most suitable for your business. Considering these questions before speaking with a broker or applying for a loan will allow your broker to best assist you in finding the best business loan or financing for your company.

What are you looking for?

Your broker needs to understand what you need finance for, how much money you need and how long you need this money for.

Whether you are looking for property financing for a large scale commercial property product, looking at options for leasing building equipment or simply want to explore alternatives such as debtor finance or a letter of credit to cover a short term cash flow shortfall, our brokers can help.

How much can you pay?

An online calculator such as our calculators will allow you to determine what the monthly cost of a loan at different sizes, interest rate and maturities will cost you. Any lender will want to ensure that your monthly pre-interest cash flows equal or exceed your interest expenses.

We recommend that you ensure that all your financial statements including income statements, cash flows, balance sheets and personal and corporate tax returns are prepared and up to date before applying for a loan.

How safe a credit are you?

Questions including how long you have been in business, what your current financials and what relationship and credit terms your customers have will help a broker or lender ascertain your ability to repay the loan. You will also be asked about any assets such as property or inventory that you could pledge as collateral against a loan. Lenders will also often request both a personal and corporate credit check to understand your past credit history.

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Selecting the Best Business Finance

Once you receive offers from different lenders and finance companies, your broker will sit down with you and discuss your options. The key questions to discuss include:

Does this loan provide what you need in terms of the amount of funding you need and does the maturity of the loan make sense for your business plans?
Have you found the best interest rate and will the interest cost be easily absorbed by your business?
Are you comfortable will all the fees and potential penalties associated with the loan?
Do you fully understand the ramifications if you were to fall behind on your payments?

Once you can answer these and are comfortable you have found the best financing or loan for your business it is time to get back to growing your business!

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