How to get Instant Business Finance in Australia
Obtaining Instant business finance is not something you here a lot about unless you are in business and need a serious amount of money fast. short term business loans in 24 hours seems like an impossibility but you can obtain them in Australia quite easily. These loans are designed for business people that require funding fast and start from loan amounts of $20,000 to $2,000,000.
These loans are often what you would call caveat loans or secured business loans and are usually granted for a period of 1 month to 6months when required. These short term business loans in Australia should only be entered into if the person seeking the finance has a guaranteed exit strategy such as the sale of a property or have the ability to refinance the loan with their bank in the future.
So how does a short term business loan work? That is a good question. There needs to be property attached to this loan so the loan is a secured business loan or what is known as a caveat loan in Australia. There must be at least 75% LVR available in the property. This means what you owe on the property now plus the amount of the short term business loan you are taking out, must not exceed 75% of the property value. For example if your property is worth $1million dollars the total debt over that property can not exceed $750,000 including the business loan you are taking out. A caveat for the full amount of your business loan amount is placed over the property until such time as the loan and interest amount is paid in full.
This type of instant business finance can help a range of different business people and are often used by business people for
· Property developers needing finance fast to purchase a property or finish an existing development.
· Bad credit business loans for businesses that may have a default on their credit score.
· Companies that need a quick loan to pay a tax debt or employee entitlements
· Business people that have a business opportunity that needs a fast business loan with no financials required
There are many reasons that business people need a quick business loan, especially now that the banking royal commission has tightened up on business loans Australia wide. Lets take a look at the following scenario on how Greg used an instant business loan to help his business.
Scenario: Greg requires $300,000 from his bank to settle on a block of land that his development business has signed a contract for and paid a $30,000 deposit. Greg’s bank has told him the finance should be approved. A week before settlement the bank asks for Greg’s 2017 – 2018 financials so that they can approve the loan.
Greg has not had his tax done for the previous financial year yet and it will take a few weeks to finish his financials and at least that again to have his loan approved. Greg is now in a position if he can not settle on his loan in a weeks time he will lose his deposit and his property deal will fall through.
Greg owns his own property valued at $800,000 and owes approx $200,000 on his mortgage. He contacts Instant Business Finance, Elite Capital, and HomeSec Business Finance to find a caveat loan to try and save the deal and keep his deposit. All of these companies can help Greg sort his short term business loan requirements. Instant Business Finance funds Greg’s $300,000 within 24 hours as he did not need to provide financials as the equity in his home was within the 75% LVR range. Greg settled on his property and 2 months later after his financials were complete his bank funded the loan in which he paid out Instant Business Finance.
As you can see the benefit of the cost of a short term business loan far outweighed the potential loss in the situation above. I mentioned three businesses that can help with short term lending above. The reason for this is I have done the research on these companies and they all seem to provide great service and fund business loans within 24hours.
For short term business loans in Australia try these three websites they are full of useful information and the staff are very easy do discuss your needs with.
Enjoy your business!