Long Term Business Loans – Australia
- Have big plans for your commercial facility and need longer-term lending?
- Need to invest in large-scale equipment loans to expand your commercial opportunities?
- Require long-term lending for long-term construction projects?
- Looking for an option to avoid bringing new investors into your organisation?
- Lending terms offered on major investments not workable for your commercial cash flow?
- Want greater control of your capital with longer-term lending?
We have the answers! Your comprehensive hub for all aspects of finance for businesses across Australia.
Long Term Loans: Explainer
The key difference between long-term financing and the usual loans you source from your bank or non-bank lender is in the title – the term. Most banks and other lenders will have strict guidelines around the terms they offer for loans on various assets – cars, vehicles, trucks, and equipment. These terms may be 4, 5, or up to 7 years depending on the lender and the goods.
- For most acquisitions that is sufficient and allows the repayments to be set at a workable amount.
- But for some acquisitions and investments, commercial organisation require a longer term to repay the borrowed amount.
- A lending instrument to facilitate investment in a organisation or the acquisition of large-scale, or high-priced equipment.
- The term is usually determined by the working life of the asset being financed, the amount, and individual lender requirements.
- Terms of up to 10 years and for some purposes, up to 20 years.
- Fixed-term so commercial entities can proceed with implementing longer-term plans.
- Secured loan structured with the asset used as collateral.
- Often attract a highly competitive lower interest rate due to the security being offered.
- Interest rates negotiated with the lender – may be variable, fixed or a combination.
- Provide injection of cash flow to allow a business to preserve capital.
- Repayments negotiated with the lender and usually set at a fixed amount payable either monthly, quarterly, or at some other agreed timeframe.
- Provides ABN organisations with long-term certainty and may create greater confidence to proceed with expansion and growth plans.
- Available to most commercial entities – long-established large operations and SMEs.
We have sources that provide long-term commercial lending to companies throughout Australia.
Long Term Loans: Purposes
Commercial organisation's may have present with a range of purposes for which they require a long-term loan. These will vary across different industries but often include:-
- Manufacturing and engineering industries – to significantly increase the production and output with a major investment in plant, machinery, and equipment.
- Construction industry – to finance the project development, either entirely or for key stages.
- Investment for ongoing commercial operations and expansion – an attractive option over seeking independent investors which may pose unwanted risks to the ownership and control.
- Wages and costs associated with employing more staff to expand the workforce to take on new projects or expand into new markets.
- Research and development of new products.
Accessing a Long Term Business Loan
Long-term commercial loans may be offered by banks to very substantial and long-term customers but in many cases, organisation needs to look beyond the bank to source this type of specialist lending. Knowing where to look and who to approach for a long-term commercial lending is the real challenge facing many organisations. A challenge that we can meet – for your benefit.
We have lenders in our lending panel that provide long-term commercial lending. To discuss your requirements with them – ask us! It’s that easy. Send us your loan details and we’ll provide you with a shortlist of lenders that match your criteria.
Connect with us to be connected with commercial lenders that offer long-term business loans.