Business & Commercial

At The Lending Shop we are dedicated to understanding and supporting the needs of businesses and offer comprehensive lending solutions to meet those in the form of:

• Business Loans
• Commercial Loans
• Lines of Credit (Overdraft)
• Start-Ups Vs Existing Business
• Franchise Funding
• Venture Capital
• Asset & Equipment Finance (also known as Leasing)
• Debtor/Invoice Financing
• Trade Finance
• Self Managed Super Funds (SMSF) Loans

Our experience and access to a wide range of lenders means we can provide finance for both the usual and unusual needs of a business customer.

What's the difference between Business Finance and Commercial Finance?

While both business and commercial finance (also known as commercial mortgage and commercial property loan) are usually secured by a residential or commercial property, the lenders usually associate business finance as loans to small to medium businesses. These loans are for business purposes only and the cost associated with these loans can be tax deductible.

Commercial Finance is generally viewed as financing for the purchasing of a commercial property.

Lines of Credit (Overdraft)

This is where a lender gives you a limit of how much you can borrow. You can draw down as little or as much as you need up to that limit for business purposes.

Start-Ups vs. Existing Businesses

A good point to consider when seeking business finance to run your own business, is that lenders usually consider existing businesses less risky than a start-up business. Speak to your finance broker as they will be able to assess and advise what direction you should take.

Franchise Funding

Franchise funding is exactly what the name suggests; it is where lenders fund people who are opening a franchise. Lenders are likely to franchise finance because they have proven that their business model works as opposed to new start-up businesses.

Venture Capital

This is where a lender makes an investment into your business by giving you funds for a percentage of equity or stake in your business. The size of the steak they will want and size of funds given to you are all dependant on how strong your idea is.

Asset (Equipment) Finance

Many businesses choose this type of finance as it protects the cash flow of the business. 100% finance is usually available with tax deductions being available to the borrower.

Click here for our asset finance calculator. This calculator will show you the monthly repayments on different assets. Your finance specialist has the full version of the software which they will be able to compare loans and apply on your behalf. Click here to speak to a broker.

Debtor/ Invoice Finance

With this finance the lenders gives you a percentage, in cash, of what is owed to the business (usually between 80-90%). Beware that if the debtor ultimately does not pay, the business must repay the lender which has been given.

Trade Finance

If the business has bought stock from overseas, it can be some time before the finished goods are sold. With trade finance, the lender gives a percentage of the money against the stock that has been purchased.

Self Managed Super Funds (SMSF) Loans

Lenders are now offering commercial loans against SMSF for investment purposes. Three parties - accountant, financial planner and lender - need to be involved when arranging finance of this nature.

Why use a finance consultant/mortgage broker

Because finance consultants have an understanding of the loan process and the criteria used by Lenders in evaluating borrowers they are able to make sure your loan application is completed quickly, correctly and that you get a loan which is right for you.

• They will work with you to identify your needs
• They have access to an array of loan products with many different lenders
• They will help you to understand the various deals that are on offer, explaining all the features and details
• They will lodge your application for you
• They will deal with the Lender for you
• They will arrange all paperwork necessary to secure the mortgage
• They will be there after your loan has settled and work with you to ensure your loan continues to offer you the outcome you need.

Choosing a finance specialist

Make sure your finance specialist is:

• A member of the Mortgage and Finance Association of Australia (MFAA) www.mfaa.com.au
• Part of a reputable aggregator (the grouping of a number of mortgage brokers into one, for the purpose of doing business)
• Happy to disclose fees and commissions
• Covered by Professional Indemnity insurance
• Has access to a broad panel of financial institutions
• Takes the time to understand your needs and assess your options
• Is part of an External Dispute Resolution Scheme such as Credit Ombudsmen Service Limited (COSL) www.cosl.com.au. COSL is an independent dispute resolution service for the credit industry. They assist borrowers should there be a dispute that is not resolved between the parties.

All brokers with The Lending Shop are members with MFAA - The Lending Shop is proudly operated by the Australian Loan Company Ltd.

MFAA Wholesale aggregator
of the year 2008

Finalist - Wholesale aggregator
of the year 2009