Medical Search Australia Trusted by 250,000+ buyers

Top 5 things to know before you Aapply for a commercial loan

Supplier: Allied Capital
24 November, 2011

Following are the top 5 things you should know before you Aapply for a commercial loan.

  1. Banks and other lenders will require proof of income to repay the loan. In the case of a business loan that will mean providing up to date financial accounts for the most recent tax year, and possibly management accounts for the most recent part year. 
  2. Lenders will want to understand you and your business completely so be prepared to provide a personal statement of assets and liabilities to accompany the business accounts. 
  3. Business lending tends to have shorter loan periods than home loans. Home loans are commonly 30 year loans and business loans are frequently 15 years; however variations occur and you should ask what term will be relevant to your circumstances. 
  4. If you are buying a business or commercial property you will need to allow for the stamp duty payable on the purchase.  
  5. GST can be applicable to a purchase of a property or business. Ask the vendor and your accountant or solicitor whether this is relevant. A business that is a “going concern” won’t generally incur GST, however a commercial property will. Seeking independent expert advice early will ensure this is taken into account. Some lenders will finance the GST amount until it can be reclaimed in the next tax period.

Allied Capital is far more than a specialist Business Finance Broker. We have the expertise and experience to specialise in Commercial Finance, Property Investment Finance, Construction Finance as well as Specialist Equipment Finance.

Whether you are looking at Franchise Finance or Commercial Loans, Industrial or Retail Property Finance let Allied Capital’s business finance brokers source one of the best financing packages available, tailored to your particular circumstances.