A commercial loan is a loan that is extended to businesses by a financial institution. Cash is vital to businesses. Whether starting up or looking to expand, you’ll need funds for stock and supplies, staff, premises, equipment, technology, and a myriad of other expenses.
Understanding a Commercial Loan
For small businesses, it is unfeasible to access equity and bond markets for financing due to regulatory hurdles, associated costs, and the time required to secure the funds. Therefore, small businesses utilize debt products such as commercial loans and/or lines of credit.
Commercial loans can ultimately be used for any purposes required for the business – acquiring assets, purchasing supplies, meeting daily operational costs, paying payroll, etc. In the loan application process, the business must specify what the commercial loan will be used for.
Discuss Your Needs with Us Today
Whether you’re looking for a long-term secured loan to purchase machinery for your business, or you want a short-term unsecured revolving loan (such as a line of credit) to generate cash flow, get in touch with us.
What requirements do you need to meet before you lodge your application with us.
- Security: banks will require security in the form of commercial property purchased at least.
- Personal and corporate guarantee: a guarantee is required by all company directors for the following:
- The company is the borrower,
- Directors’ other company’s profit has been used for serviceability purpose.
- Credit history: clear credit records will bring the interest down and make the application easier as well.
- ATO liabilities and lodgement: all lodgements must be up to date and the ATO portal printout shows nil tax debt.
TSK Loans Pty Ltd is an authorized corporate Credit Representative (#528475) of Australian Credit Licence No. 384324 including our brokers:
Taranjit Singh Kahlon is an authorized Credit Representative No. 528474) – Call him today (03) 8721 9989