Kym Nitschke from Nitschke Nancarrow explains how a mortgage broker can make your next business or commercial loan smooth sailing.
Think a mortgage broker can only help you out with a residential loan?
It’s not just with your home that a mortgage broker can assist. Many brokers also specialise in commercial lending.
Whether you have a business or plans to get into commercial real estate, chances are pretty good that you’ll need financing to get by. The process and requirements for getting a commercial loan are quite different from those of residential lending.
Are you looking for a commercial loan in South Australia? Let’s put you on the right track for finding the loan that’s right for your business.
Types of Business Lending
A business loan is classified based on what sort of business you have. Business lending may include:
– Small Business Lending
– General Business Lending
– Commercial Property Lending
– Equipment Finance
There is no ‘one-size-fits-all’ in this case.
Commercial Loan – How Do You Qualify?
First off, your business or commercial entity must be represented by an Australian Business Number (ABN). In fact, some lenders might even require that your ABN be registered for a minimum of 24 months before they’ll loan you funds.
Another thing to consider is that you’ll need to provide a solid record of steady financial performance. A history of solid cash flow and well-managed liabilities and expenses will encourage lenders to make an investment in your efforts.
Different Lenders, Different Approaches
One thing you’ll quickly realise about the commercial lending system is that the individual lenders vary greatly from one another in expertise and approach.
For example, one lender might specialise in businesses in the medical field. Another is partial towards those in the agricultural industry. On top of this, each lender has a different list of requirements for a loan.
So it’s very important that you find the right fit. The right type of loan could save you thousands. The wrong type could cost you thousands.
You need to find a lender who is familiar with the needs and challenges unique to your business.
But where do you even start?
Get the Help of a Mortgage Broker in Commercial Finance
An experienced mortgage broker will have an extensive history of interactions with lenders in the area. He or she will help you find the perfect fit with a lender whose qualifications match your circumstances.
The mortgage broker will also help you gather all the important information, including:
– Corporate financial details (profits, assets, liabilities and projections if your business is just getting underway)
– Value or projected value of the property (used as security against the loan)
– Personal financial details
Your mortgage broker can help you find a lower interest rate, particularly if you use your home as equity.
With the help of a great broker, you can find out much more about fees, credit rating requirements and the loan application process.
See what good a strong relationship and clear communication with an experienced mortgage broker can do for your business.
Nitschke Nancarrow provides first class finance broking services. Get started today by giving us a call on (08) 8379 9950 or sending me an email.
– Kym Nitschke