Planning to start a business or thinking of expanding your existing one?
It requires a considerable amount of money to fund your startup or your expansion plans. You may want your business to achieve new heights but you may lack the required financial resources. A medium or long term business loan can be a viable solution for such situations.
Business loans go a long way in enabling you to launch your business initiatives, even if you do not have immediate funds at hand. Secure the future of your business by opting for a business loan in Melbourne and allowing us to choose the right one for you.
“We, at Credit Hub, are here to help you with financing your business goals.”
Decisions before opting for Business Loans?
Your first step, prior to taking a loan is realising that your business requires financing. Other than that there are numerous other considerations to make, some of which are as follows-
- How much finance do you need to borrow?
- What type of loan would you actually require to take?
- What will the loan term be?
- Will your business be able to pay off the loan along with the interest and any one-off or ongoing fees that come with it?
- What type of security would you be able to offer the lender and how will it affect the interest rate offered?
When you apply for a business loan in Melbourne, you will be asked for in-depth information regarding the financial history of your business. This is why, you should be well-prepared with a convincing and detailed business plan that clearly signifies a profit and loss budget and cash flow forecast. This will also assist the lender in assessing your project. This includes both the past and future plans for your business, the people working in it and the market itself. The outcome of your application is strongly influenced by how well your proposal is researched and how well it is presented.
Types of business loans
A business loan in Melbourne can be either secured or unsecured. A secured loan may require some assets as collateral which can be claimed by the bank or financial institution if the repayments are not made. Unsecured business loans, such as business overdraft, can be a viable option if the funding is required for a short term. Such unsecured loans are usually available at cheaper interest rates. Depending on the business needs, there are various options to go for a business loan. If you know what your exact needs are, then you can easily get the right business loan in Melbourne for your requirements.
In fixed business loans, the interest rate remains constant throughout the life of the loan. If you want to ensure that your monthly repayments are stable throughout; fixed loan is what you need. However, the interest rate can sometimes be higher than market rates. Fixed loans also provide some features like additional repayments so that when your cash flow is good, you can repay the loan faster and significantly reduce the overall interest you end up paying.
In variable business loans, the interest rates change according to the market rate. Usually, the interest rate is tied to an index that fluctuates in the market. If a little uncertainty in terms of variable repayments does not bother you, then this option can turn out to be a big advantage as variable loans offer a lot of flexible options. It’s a good idea to explore variable business loans for its flexible features such as extra repayments, redraw and offset facilities or interest-only repayments
In case of a split loan, the loan that has been lent to a borrower is split into two or more parts, with a variable rate portion and a fixed rate portion. It allows the borrower to enjoy the best of both worlds of fixed and variable business loans to balance out the repayments.
Business loan features
Making extra repayments on top of your regular scheduled repayment is a great way to pack back your loan faster, with the bonus that you pay less interest over the life of your loan. Not all lenders offer this facility.
This allows business owners to withdraw any additional repayments that have been made on top of any regular required payments. It gives a loan term a certain amount of flexibility, since you can pay more when you can afford to and then take it back later if you need to.
Lump Sum Repayments
Sometimes when cash flow is good, a business owner may want to repay a big chunk of their loan all at once in a lump sum repayment. Much like making many smaller additional repayments over time, a lump sum repayment can cut down the balance of your loan faster and means you pay less in interest over the life of your loan.
Split Loan Facility
A split loan is when you divide your loan into two parts, with one part being charged at a fixed rate and the other part being charged at a variable rate. Technically you are taking out two loans, but most banks will only charge the fees for one loan. However, some institutions will charge a fee if you would like to split your loan.
Loan portability is a feature that allows you to keep the same loan when you change properties, saving you the hassle of refinancing the loan. It means you are changing the security for the loan.
Switching Between Variable And Fixed
This facility allows to switch your loan from a variable to a fixed rate loan, or vice versa.
Commercial Loans in Melbourne
Whether you require funding for an office/retail space or an industrial property like a factory or warehouse, our mortgage advisers will guide you through the options for a commercial loan. We help you choose from a wide range of options such as a fixed rate, variable rate, interest-only, and more and make an informed decision.
We understand that the right car/equipment influences the growth of your business. Now, you don’t need to cut back on your working capital to purchase car/equipment or assets for your business. At Credit hub, we help you manage your cash flow by helping you choose from a wide range of car/equipment and asset finance options.
The capital expenditure of acquiring a franchise can be significantly large and this is where Credit Hub steps into the picture. We make loan assessments easier for you by analyzing the value of the franchise system. Our sincere pursuit for the apt loan enables us to look for a loan product specifically tailored for your franchise business.
If you are looking forward to expanding your business and need truck finance for the same, you don’t need to invest a huge amount of capital. A truck loan comes to the rescue and we help you navigate through a range of truck finance products so as to choose the right product for you. Whether you should lease, loan, or hire, we help you decide what’s suitable for you.