Business Loan, Personal Loan & Equipment Finance

Secured and Unsecured Personal Loan

Secured Personal loans are backed by security e.g., Car. Personal Loan backed by security can help you in getting ideal loan amounts with favourable terms, because they are considered less risky as compared to an unsecured loan by the lenders. Unsecured business loans are one of the most popular loan options. An unsecured personal loan can be obtained without the need of pledging any asset as a security so the interest rate could be bit expensive than the secured personal loan because of its risky nature.

FEATURES

  • Secure or non-secure

  • Simple and Hassle-free approval process

  • Flexible repayment Terms

  • Bad Credit History Can Be Considered

PROS:

  • Quickest ways to access funds

  • Timely repayment helps in building a strong credit history

  • No Early Repayment Penalty

CONS:

  • Slightly stricter eligibility and lending criteria

  • Interest rate is flexible

  • Require security for higher loan amount

Vehicle and Equipment Finance

This loan product is availed to personal and businesses which requires to purchase a vehicle or equipment for the personal or business use. A vehicle or equipment loan is backed by the underlying asset to be purchased so no additional real estate security is required.

FEATURES

  • 100% Funding Possible

  • Quick Approval

  • Loan Term 2-7 Years

  • Both New and Old assets can be funded

PROS:

  • Quick and simple approval process

  • Longer term funding available

  • No further assets required

  • Bad Credit History Can Be Considered

CONS:

  • Cannot sell or dispose the funded security before paying off the loan

  • Early repayment penalty may apply

Secured Business Loans

Secured business loans are backed by security in any form. Business loans backed by security can help businesses in getting ideal loan amounts with favourable terms, because they are considered less risky as compared to an unsecured business loan by the lenders.

FEATURES

  • Needs to be backed by a security in any form

  • Possible for new/start-up businesses.

  • Flexible repayment terms

  • Bad credit history can be considered

PROS:

  • Competitive interest rate

  • High probability of approval

  • Higher loan amount

CONS:

  • More paperwork

  • Risk of losing asset on default

Unsecured Business Loans

Unsecured business loans are one of the most popular business loan options specially for small business owners. An unsecured business loan can be obtained without the need of pledging any asset as a security.

FEATURES

  • No Security needed

  • Low Docs Loan

  • Simple and Hassle-free approval process

PROS:

  • Quickest way to access funds

  • No Risk of losing any asset

  • Low Docs loan

CONS:

  • Interest rate could be higher

  • Short-term and limited loan limit

Bad Credit Business Loans

Every business goes through a bad phase, and some can end up ruining their credit history in the process of recovery. This loan product is especially designed for such businesses to give them a second chance. If the business has a healthy cash flow in present but are turned down by lenders due to past bad credit history. The good news is, there are lenders who specialise in helping such businesses to get back on feet with the much-needed funding as well as give them an opportunity to improve their credit history through timely repayment of the loan.

FEATURES

  • Short Team Loan

  • Security may require

  • Quick approval

PROS:

  • Low Docs

  • Helps to build credit through timely repayment

  • Quick and easy approval decision

CONS:

  • Higher interest rate

  • Lower loan limit

Trade Finance

A trade finance is also called supplier finance. It enables you to pay your supplier upfront or in advance before receiving goods. You can get up to 100% of your supplier’s invoice funded and have flexibility to repay up to 150 days term.

FEATURES

  • No Real Estate Security needed

  • Ability to pay suppliers in advance to get early payment discounts

  • Flexible repayment terms with interest free periods

How does it work?

  • Order goods from the domestic or overseas supplier

  • Present your supplier's invoice to the lender

  • The lender pays the supplier's invoice

  • Payback the lender on agreed terms of repayment

Invoice Finance

An invoice finance facility allows you to access funds in advance against your invoices. The lender approves a limit on your business, and you can draw funds against your invoices within the set limit. Once, the invoice is paid, it gets set off against the amount borrowed in advance and balance is paid back to you net of charges.

It is also commonly known as “Invoice Discounting” or “invoice Factoring” facility.

FEATURES

  • Works like a business line of credit

  • Get paid up to 95% of the invoice value

  • Can be obtained as disclosed or undisclosed facility

PROS:

  • No Real estate security needed

  • Does not impact on business leverage ratio

  • Quick approval

CONS:

  • All the business may not be eligible

  • Funds can be draw only on presented approved invoices

Debtors Finance

A debtor finance facility is often used interchangeably with an invoice finance facility as there Is not much difference between both products. Under debtor finance, the lender provides a limit against the accounts receivables ledger of the business. Businesses can get financed up to 80-85% of their receivable ledger. The limit is secured by receivables ledger, and they don’t require to provide any additional real estate security.

Debtors finance is also commonly known as “Receivables Finance” or “Debtors factoring’.

FEATURES

  • Works like a business line of credit

  • Get paid up to 80-85% of the receivable ledger

  • Receivables outstanding for more than 90 days are not considered

PROS:

  • No Real estate security needed

  • Unlock immediate cash flow from receivable ledger

  • Does not impact on business leverage ratio

  • Quick approval

CONS:

  • All the business may not be eligible

  • Debtors outstanding for more than 90 days are not consider for funding

Difference Between Business Loan And Personal Loan

People may take loans for several reasons, however broadly speaking, it could be either for personal purpose or for business purpose. A loan taken for personal purpose could be a home loan, car loan or a personal loan. Similarly, a business purpose loan could be a term business loan, invoice finance or any other business loan products mentioned above. Both these loans are different from each other in various aspects like nature, usage, amount, term etc. Some of the key differences between both are listed below.

BUSINESS LOANS

  • A business loan is taken in business capacity and the business remains the primary borrower.

  • You require an active ABN to be eligible for a business loan.

  • The loan is mainly assessed based on income of the business.

  • You are not personally liable for repayment unless you provide a personal guarantee for the business loan.

  • Can claim interest costs as an expense in the business and can be set off against the income of the business.

PERSONAL LOANS

  • A personal loan is taken in personal capacity and the person remains the primary borrower.

  • No ABN is required.

  • The loan is assessed based on your personal income.

  • You are personally liable for repayment of the loan.

  • Cannot claim interest costs as expenses and this cannot be set off against your income.