Business Loan
WHAT ARE THE BENEFITS OF GETTING A BUSINESS LOAN?
To achieve your start-up or your expansion plans we understand that it takes a substantial amount of money to help fund your vision. Perhaps it is a goal to see your business reach new milestones but you lack the necessary financial resources. A medium or long term business loan can be a viable solution for such situations.
Business loans are beneficial towardsallowing you to launch your business initiatives, despite the fact that you might not currently have funds at hand. You can establishyour business’ future by opting for a business loan and letting us do the legwork in choosing the right loan for you.
When we succeed in helping you finance your large purchases, you can then allocate your freed valuable capital towards other areas of your business.
THINGS YOU NEED TO CONSIDER
We have provided a general guideline of things to consider for the decision making process required before advancing with a loan.
- Firstly, you need to identify the clear need for a business loan and how you hope it will help your business objectives.
- Among other things you will then need to consider how much funds are required to be borrowed?
- Identifying the type loan you will be required to take
- The term of the loan
- Analysing your business’ ability to make loan repayments along with the interest; ongoing and one-off fees need to also be considered.
- Identify the type of security your business can offer the lender and its impact on the resulting interest rate which is offered.
You are now ready for a discussion of your loan needs with A1 LoanHub!
HOW THE MEETING WORKS
THE BUSINESS LOAN CATEGORIES AVAILABLE
When you have a business loan it will either be unsecured or secured. An unsecured business loan, such as a business overdraft, will be suitable if short term funding is required. These types of loans typically have lower interest rates. A secured loan on the other hand may require some assets as collateral which the bank or financial institution may claim if the repayments are failed to be made.
As you will see there are various options that you may choose to pursue for your business loan. If you understand what your precise requirements, then you can easily get the right loan for your requirements. However, if this is not the case, the team at A1 LoanHub will always be here to assess your potential needs and go through the process with you.
Fixed Business Loans
These are loans where payments are set against a fixed interest rate, and remain the same for the term of the loan, which can provide certainty around repayment amounts. The interest rates for a fixed business loan, however, are often higher than market rates. Some lenders permit additional repayments to be made by fixed business loan owners (usually up to a set limit per year). Therefore, this is a great option if your business has improved cash flow and the possibility exists to pay off the loan sooner and reduce the interest incurred.
Variable Business Loans
These types of loans allow for greater flexibility, however, since interest is calculated on ancontinual basis against market rates, it provides less certainty around future repayment costs. Various lenders will offer different options for repayment; some lenders mightallow reductions to interest only payments for a period of the loan. Further payments may be made without penalty, and some lenders will permit a redraw facility on their variable loans. This will in turn enable your business to access funds without having to create a new credit facility.
Split Loan
This is where the loan a borrower has is split into two parts; a variable and a fixed portion. You can choose to utilise this to adjust and plan your repayments based on your needs and circumstances. Not all lenders offer this option.
Due to the overwhelming variety of options available in the market you can trust our friendly team to guide you through the process while prioritising your requirements.
SOME OTHER FEATURE OF BUSINESS LOANS
Additional Repayments
A fantastic method of paying back your loan faster is to make extra repayments on top of your scheduled obligated payments. The additional bonus is that there is less interest to be paid over the loan term but this entitlement will need to be verified by the loan provider as not all lenders offer this option.
Redraw Facility
This provides you with the ability to withdraw any additional repayments you may have made on top of your mandatory payments. A certain degree of flexibility is offered with this facility, since you can always make additional repayments when you can afford it and then take it back later if you need to.
Lump Sum Repayments
This is used when you feel that you are able to repay a large chunk of your loan at a given time through a lump sum payment. Similar to smaller additional repayments over time, a lump sum repayment will close down the balance of your loan quicker and this of course means that you will pay less in interest over the term of your loan.
Portability
This is a feature that will you to keep the same loan when you change properties. This will then save you the trouble of refinancing the loan. It means you are changing the security for the loan.
Switching Between Variable and Fixed
This facility allows to switch your loan from a variable to a fixed rate loan, or vice versa.
SOME OTHER FEATURE OF BUSINESS LOANS
Commercial Loan
Ranging from funding required for industrial properties such as a warehouse, to retail or office spaces, our goal as mortgage advisers will be to guide you through the options available on the market for a commercial loan. At A1 LoanHub we will help you choose from a wide range of options such as a fixed rate, variable rate, interest-only, and more and make an informed decision.
Truck Loan
If you are aiming to expand your business and one of the primary needs is trucks for logistics then you will not need to invest a large amount of capital. Truck loans can be quite handy, since as mortgage brokers, we will help you navigate through a diverse variety of truck finance products in order to choose the product which suits your need. Helping you decide on whether to lease, loan, or hire is all part of the service we look forward to providing you at A1 LoanHub.
Equipment Finance
Being a young but rapidly developing business we understand that the right equipment is crucial to the growth of your business. Now, you do not need to sacrifice your working capital to purchase equipment or assets.
Franchise Loan
Acquiring a franchise will require a significant large capital expenditure. At A1 LoanHub we pride ourselves in making loan assessments easier for you by examining the value of the franchise system. Our priority is to identify a loan which suits the needs of your franchise business.