Applying for a business loan can be intimidating to borrowers new to the process, however, with a finance broker such as Elkins Finance, to assist to navigate the way, the loan application process is fairly straightforward. Although the specific steps can vary from lender to lender and business to business, most business and commercial financing will follow a similar process.
Step One: Speak with Elkins Finance
Having a one-on-one discussion with a credit expert, such as Elkins Finance, can help you to quickly identify eligibility for the types of business loans, leases or line of credit products available to suit the unique needs of your business. We can also recommend a specific lender based on the funding scenario and help you estimate how long it will take to obtain funding, an important requirement, especially if time is critical.
A difference between lenders is the number of years worth of financials needed. Some lenders will be happy to loan for a commercial purpose but want a non-commercial security while others are happy with a commercial security. We also have access to low-doc products where no financials are required providing certain conditions are met. We are happy to advise on this.
Step Two: Apply for the loan or lease.
We will help you with loan or lease application and verification documentation including a business profile. In general, the business profile should include: the type of business, the company’s annual sales, the total number of employees, a profit and loss statement, information regarding the length of time the company has been in business and details about recent ownership history. A lender will usually want to see a business plan, particularly for a start-up company. Lenders would also require personal financial statements and available business financial statements. If the loan is secured, the borrower will also need to provide information about the collateral being offered. Collateral can include personal real estate, property, business equipment, accounts receivable, inventory and supplies, or business real estate. We have access to a number of potential financiers.
Step Three: Wait for the lender to assess documentation.
The lender will then verify the authenticity of documents and review the information provided. We will keep you updated.
Step Four: Receive loan approval or otherwise.
After assessing the application, if approved, the borrower and lender will sign all necessary paperwork, then the funds are disbursed or the loan settles (if for a property purchase).
How long does it take to get business loan or lease approval?
The length of time to approve a business loan varies depending on the chosen lender and the business’ unique circumstances. Approval can be completed within a matter of hours, days or can take several months usually depending on the complexity of the transaction. We will estimate the length of time to get loan approval at the outset of the application process.
What types of business loan and lease financing are available?
The majority of funding these days is secured. Secured loans attract a lower rate than unsecured loans. Although specific financing offers will vary, most lenders offer a variety of financing options for business owners. Below are a few of the most common financing options:
- start up financing;
- business growth financing;
- debtor / inventory financing;
- motor vehicle financing;
- equipment and plant/tools financing;
- business property financing; and
- trade financing.
How long will I have to repay?
Generally, business loans are set for a term of one to fifteen years, however, this can vary from lender to lender. There can also be a revolving line of credit established, which can allow a great deal of flexibility for a growing business, and can assist in businesses subject to cash flow variations. The amount of money being borrowed will also affect the term of the loan. A business loan with residential property security can have a term as long as thirty years with some lenders. A loan can also be structured on an interest only basis, in that circumstance the principal will still be owed at the maturity of the loan.
To discuss your options call Elkins Finance on 1300 355 467 or use the contact us form to request we contact you.. Based in Melbourne, with offices in Blackburn and Campbellfield, but fully mobile and flexible to suit you.