FAQ
Business Finance Questions, Answered
Plain answers to the questions we get asked most. If yours isn't here, call us.
General
What does a commercial finance broker do?
We work out what your business needs, compare options across our lender panel, help you put the application together and manage it through to settlement. You deal with one person instead of applying lender by lender.
Do you arrange personal or home loans?
No. We only arrange finance for business purposes.
Who can apply?
Sole traders, partnerships, companies and trusts with an ABN. Newer businesses and credit history are considered case by case, and the lender makes the final decision.
Does sending an enquiry affect my credit file?
No. Sending us an enquiry doesn't involve a credit check. Lenders check credit when they assess an application, and we'll talk to you before anything is submitted.
What documents will I need?
It depends on the finance and the amount. Usually ID, your ABN details and recent business bank statements. Larger loans may need financial statements and tax returns. We'll tell you up front.
How long does it take?
It depends on the lender, the type of finance and how quickly paperwork comes together. We'll give you a realistic timeframe once we know your scenario.
By Product
Vehicles & Equipment
Do I need a deposit?
Not always. Many lenders will finance the full price of the asset for an established business. A deposit or trade-in can help if the business is newer or the asset is older.
Can I finance a used asset or a private sale?
Yes, many lenders allow used assets and private sales. They may want an inspection or valuation, and some limit how old the asset can be by the end of the term.
What's a chattel mortgage?
It's a loan where your business owns the asset from day one and the lender holds it as security. It's the most common way Australian businesses finance vehicles and equipment.
Should I talk to my accountant first?
It's worth it. GST and tax are treated differently under a chattel mortgage and a lease, so a quick chat with your accountant helps you pick the right one.
Business Loans & Overdrafts
What's the difference between a loan and an overdraft?
A loan gives you a lump sum that you repay over a set term. An overdraft or line of credit gives you a limit to draw on when you need it, and you pay interest on what you use.
Do I need property as security?
No. Unsecured options are available, usually with a director's guarantee. Offering property can open up lower rates and longer terms.
Can you help with an ATO debt?
Some lenders will lend to pay out an ATO debt, depending on whether it's on a payment plan and the rest of the business picture. Tell us about it up front.
How much can I borrow?
It depends mostly on your turnover, trading history, existing debts and any security. We'll give you a realistic range once we understand the business.
Invoice Finance
Will my customers know?
It depends on the facility. With disclosed facilities your customers pay the lender. Confidential facilities keep the arrangement between you and the lender.
What's the difference between factoring and invoice discounting?
With factoring, the lender usually manages collections. With invoice discounting, you keep managing your own collections. We'll explain which suits your business.
Is invoice finance a loan?
It's a funding facility secured by your invoices. You draw against invoices as you raise them, rather than taking a fixed lump sum.
Property & Equity Release
What's a second mortgage?
A loan secured behind an existing first mortgage. It lets you use equity without refinancing your main loan, usually at a higher cost.
How much can I borrow against my property?
It depends on the property's value, what's owing on it, the type of property and the lender. We'll work out a realistic figure with you.
Can I use my home as security for a business loan?
Some lenders will, for a business-purpose loan. It's a big decision, so we'll explain the risks clearly and you should get independent legal advice.
Construction & Development
What do I need to apply?
Usually a feasibility, development approval or plans, builder and contract details, costings, your experience, and any pre-sales. We'll give you a checklist.
Do I need pre-sales?
Banks often want them. Non-bank and private lenders may fund with fewer or none, at a higher cost.
What's a quantity surveyor for?
The lender uses an independent quantity surveyor to check the costings and sign off each stage before funds are released.
Ready to Talk Finance?
Tell us what you need. We'll compare lenders and come back with options.