Business.Finance assists operators with new ventures to secure flexible start up business finance for vehicles, trucks and equipment through the right lenders. As many new operators will quickly realise, not all banks and credit companies will approve lending applications from new enterprises. At least typically not with workable, affordable rates and conditions. Many lenders have approval criteria which include a minimum turnover, a minimum operational time and the inclusion of the complete range of financial records and documents.
So how does a new set-up get off the ground with affordable asset funding? By applying for funding with the lenders that do approve funds for new operators.
How does a new operator find these lenders? By engaging with a specialist broker in the commercial lending sector. We have accreditation with the type of lenders that new set-ups may need and we have the enthusiasm and interest to ensure our clients secure the funding their require.
Getting Approved for Start Up Business Finance
As specialist commercial lending brokers, we have accreditation with a large number of different types of lenders – the major banks, other banks, credit companies and non-bank lenders. It is many of these non-bank lenders, with more flexible approval criteria than many of the banks, that will approve lending applications from new set-ups.
The reason that many operators can’t find these lenders is because many do not provide their services directly to enterprise owners. They work through a network of their selected brokers who represent their clients. Brokers such as ourselves.
Our services are not exclusive to large, established organisations. Even the smallest, one-person set-up can contact us to apply for funding. We will handle your requirements from the initial contact right through to settlement. We identify which of our lenders has the approval criteria that best matches the profile of each client and we proceed to source and negotiate quotes and offers with workable rates and conditions.
Low Doc, No Doc, Without Financials Loans
When new set-ups do not meet the approval criteria of lenders, they may require what is referred to in the lending market as Low Doc or No Doc funding. That simply means, getting approved without all the financial documentation and records and/or without the minimum time in operation, turnover or assets.
So what is needed to get approved? Each application will be assessed individually and what is required can depend on the individual enterprise and the lender. An ABN is of course mandatory. Operators should provide what records and accounts information they have accrued on their enterprise to date.
Some of our lenders will approve applications with strong turnover for a six month period. Additional collateral for secured funding products may be required. This may take the form of assets the enterprise owns or assets owned by the owner of the enterprise.
For smaller new set-ups, the financial records and credit report of the owner can typically be requested as part of the approval process.
Depending on the lender and the enterprise, limits on how much can be borrowed and other conditions may apply. Your broker will be negotiating with the lender to achieve the most workable and flexible offer to support your enterprise.
An enterprise is not required to have GST registration to be eligible for commercial credit. But it can be a positive in the eyes of some lenders. Operators can consider their options in this regard by referring to what is needed for registration.
New Venture Finance Products
When the application is approved, new set-ups can select the credit product that best fits with their objectives, tax and balance sheet strategy and the method of accounting selected for preparation of the annual accounts. Asset acquisition credit products include Rent-to-Own, Leasing, Chattel Mortgage and CHP. Speaking with an accountant will clarify which product should be selected.
These products can be used to fund both new and used assets to be used in a commercial enterprise – low no doc car financing, utes, trucks, commercial vans and a wide range of equipment and machinery.
The relevant tax deductions pertaining to the credit product selected can be realised. All the same features of the selected credit product also apply, including the option for a balloon with Chattel Mortgage and CHP.
Ventures Eligible for Start Up Business Finance
Enterprises can take many forms under Australian regulations. We work with all types of set-ups including sole traders, self-employed persons, partnerships, family enterprises and companies of varying sizes.
You may be an owner-driver requiring van or truck funding; freelancer requiring credit for your IT and computer gear; sole trader requiring credit for a range of equipment; or a contractor requiring credit for wheeled and yellow goods; and many others.
Whatever your industry, your enterprise set-up and the assets needed to acquire, contact us to discuss how we can open the doors to lender opportunities for workable, flexible credit solutions.
Contact Business Finance on 1300 000 033 for opportunities to secure flexible start up business finance.
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.