• Business Finance

  • Seeking a Business Loan requires specialised consideration as every transaction is unique.

    There are a number of topics to consider; how much to borrow; what type of loan and how long; can the business afford to repay the loan and the costs associated; what security can be offered; ….

    The major factors restricting applicants seeking Business Loans are

    • Unsatisfactory Financial History - ITRs with low taxable profits
    • Insufficient property security cover for the loan sought
    • Working Capital purposes
    • No Business Plan

    However in many cases these concerns may be overcome with a well prepared proposal that highlights all relevant information concerning the business, its requirements and presents a rational plan that outlines its capacity to sustain financial viability into the future.

    With over 30 years experience arranging loans for small business Beltina is very well placed to assist clients requiring Business Loans for all worthwhile purposes, including:

    • Business Purchases
    • Equipment Purchases
    • Working Capital for Cash Flow
    • Refinance and debt consolidation

    Types of Loans


    Overdrafts

    Overdrafts form part of operating a business banking account to provide sufficient working capital to protect cash flow. To ensure sustainable financial viability working capital retained would normally be equivalent to 2 or 3 months trading income.

    Like most other bank loans overdrafts are usually secured by real estate property, or perhaps other valuable assets such as cash deposits, valued equipment assets or blue chip shares.

    Depending upon the strength of operations it is also possible to negotiate “unsecured” overdraft facilities.

    Term Loan

    Instead of an overdraft some business may prefer a fully drawn loan that has regular loan payments to pay off the debt over a set term.

    This is typically taken out for a special business purpose “one off” working capital expense.

    Its credit assessment and security requirements are similar to implementing an overdraft.

    Debtor Finance

    Debtor Finance is a great way to improve cash flow that is otherwise locked away in the business, tied up in the inventory (stock and debtors), or waiting to be released when customers finally pay their outstanding invoices.

    A business that does not have a sound cash flow may not be able to afford to carry sufficient stock levels, or perhaps will not be able to offer trading terms that is obviously a major deterrent for existing and potential customers alike.

    As an alternative to improve cash flow some businesses are forced to give clients expensive incentives (such as discounts) to pay their accounts promptly.

    Debtor Finance (also sometimes referred to as Factoring and/or Inventory Finance) can overcome these difficulties. It can be arranged at a cost reasonably comparable to overdraft rates, yet with a greater amount of flexibility. Debtor Finance facilities can automatically grow with the business without the need to revisit the bank with major review proposals when credit limits need to be increased.

    Recent times have seen improvements in the way these services can be provided that are less intrusive to customers that normally may resist this style of borrowing because of the “stigma” attached. However there are several excellent reasons for Debtor Finance to be considered.

    • No property security is required.
    • Current funding arrangements are inadequate or inflexible, therefore insufficient to support the business
    • The directors/shareholders want the business to be funded based on it's own assets rather than relying upon personal property securities.
    • Flexibility allows the finance amount to grow with the business.
    • Debtor management that is a problem can be outsourced to a professional organization.

    Commercial Asset Finance

    Beltina arranges very competitive asset purchasing facilities to all organisations whether they are SME’s, medium and large companies, major corporations and all tiers of Government.

    Asset (‘Equipment”) Finance is an excellent and relatively simple avenue to raise funds in business. Beltina offers three main commercial loans available to buy business assets, each with varying tax benefits to be utilised to suit business purposes.

    • Chattel Mortgages
    • Finance Leases
    • Commercial Hire Purchase
    • We offer these loans covering various types of equipment:
    • Motor Vehicles
    • Medical, Dental & Veterinarian equipment
    • Transport goods including trucks, trailers, buses and forklifts
    • Security, surveying and scientific equipment
    • Heavy machinery and manufacturing plant 
    • “Yellow” Goods – Earthmoving, Materials Handling equipment
    • All types of IT and office equipment including software
    • Office fit outs
    • Sale and Hire back available on some goods subject to special conditions

    For further information about this form of borrowing please refer to “Motor Vehicle Finance” and “Equipment Finance” section of our website.

    Beltina can show you the best way of arranging a Business Loan and negotiate on your behalf with a range of institutions that consider these types of loan.

    Beltina has prepared a “How to Get a Business Loan Guide” for its client to review. Open Guide

    Beltina has a Cash Flow Template for its clients to utilise. Download Cashflow Template

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