COMMERCIAL LENDING

Providing your business with the finance you need to succeed.

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Australian Commercial Loans to help you achieve your business goals

At darkhorsefinancial.com.au, we’re here to guide you through the commercial finance world, so you can access solutions to a range of business needs, or utilise finance for certain investment structures.

Commercial Finance is most commonly used for purchasing business equipment, solving cash flow issues, raising capital, paying down debt, purchasing commercial property, and helping a business run (and grow) seamlessly.

We’re not just commercial finance specialists; we’re business specialists with a deep understanding of what it takes to build a successful organisation (or to rescue one facing insolvency). We’re here to ensure you get a commercial finance solution that wholeheartedly aligns with your business needs and goals.

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Cash Flow Lending To Suit Your Needs

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Funding for ATO Tax Debts

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Commercial Finance Solutions for Any Business Goal

There are many reasons why a commercial loan may be right for your business. Here are just a few of the common reasons people seek commercial finance.

Pay Down Debt

Our commercial finance strategies can help you get out of debt — even when you thought it wasn’t possible. Whether you need to refinance debt to a more affordable loan or unlock equity from your existing equipment, we help you find ways to get your business back on the road to success. If you’re struggling to repay ATO tax debt or have defaulted on another loan, we’re still here to help.

Business Growth

When your business is presented with a significant growth opportunity, it’s often true that you need to spend money to make money. Access the capital you need to grab hold of growth opportunities. Whether you’re looking to purchase equipment and goods to increase your output or you’d like to acquire another business, our tailored solutions facilitate optimal outcomes.

Buy Equipment

Upgrading vehicles, equipment and other business assets can be a great step towards improving the quality of your business offering and increasing your output. With increased capacity and a higher quality offering, your business becomes well placed for sustainable business expansion. Our equipment finance solutions help you afford the business assets you need while enjoying taxation benefits.

Purchase Stock

Without appropriate levels of stock, your business could be stopped in its tracks. The right finance solution allows you to purchase the stock you need — whether domestically or internationally — while maintaining a positive cash flow position to keep on top of other essential business expenses. For businesses who sell under long credit terms, financing stock purchases can make a significant impact.

Improve Cash Flow

Cash flow is the lifeblood of a business. Without cash, you can’t purchase the material you need to continue trading, pay your staff or maintain a business premises. No cash means no business. Even the most profitable businesses run into cash flow issues, and this is where commercial finance can help! With access to cash when you need it, you can continue to turn over profit without being stuck by cash roadblocks.

Avoid Insolvency

When a business runs into trouble, has few sales coming in, and debt piling up (including ATO tax debt), sometimes insolvency may seem like the only way out. However, help is available and there is often light at the end of the tunnel. With a carefully tailored commercial finance strategy, it’s possible to bounce back from the brink of insolvency and drive your business to success.

Common Types of Commercial Finance

Business Overdraft and Line of Credit

The well known business overdraft is a line of credit which can be secured or unsecured. Secured facilities are usually secured by commercial or residential property. These are offered by a range of commercial lenders, including the major banks and a number of other providers.

Typically, the business is given a credit limit and can draw down any amount (when needed) up to this limit. The business is only charged interest on amounts drawn down, rather than the total credit limit. This can mean that it’s a cost-effective facility to have in place, should the business need to access cash flow.

The application and commercial lending process can often be completed in a matter of minutes with facilities connected the same or next day. This is in stark contrast to the weeks or months turnaround time that is often experienced with major banks.

Asset finance and Equipment finance

asset and equipment finance is for the purchase of business equipment secured with a chattel mortgage. The equipment being financed is the security for the loan. Being a secured loan, equipment finance interest rates are competitive, with a loan term that of typically three to five years. Many equipment finance loans can be assessed the same day — approved and settled very quickly.

Sale and Leaseback

A sale and Leaseback is a subtype of equipment finance which is used to raise capital against the equity in your equipment or machinery. If you own a vehicle, machine or something else of value in your business, you can borrow against that to raise capital. This is a secured business loan so it comes with competitive interest rates. The loan term will be longer compared to other cash flow loans which means your loan repayment amounts will be typically less than an unsecured loan.

Unsecured loans & Lines of Credit

Unsecured loans provide access to finance without the need for an asset to be offered as security. These loan types are great when fast finance is required as applications take minutes — and it’s not uncommon for approval and funds in your account to occur on the same day! Unsecured loans attract a higher interest rate due to the greater risk the lender takes on. For this reason, unsecured loans are a great option when you need fast finance to take advantage of an opportunity or take care of a problem.

Fitout Finance

Fitout finance is a business loan for the purposes of completing a commercial fitout. In addition to building works, you can also use fitout finance for soft costs like plumbing and electrical. The benefit of this business loan is it allows the works to be completed upfront and then paid back over a term of four or five years.

Invoice Finance

Invoice finance, also known as Debtor Finance or Factoring, is a credit facility linked to your accounts receivable ledger. Invoice finance aids cash flow by allowing you to access the value of your invoice the day you send it to your customer. The lender provides credit secured by your invoice and when your customer pays the invoice it pays down any credit you have used. This benefits business by bringing revenue recognition forward allowing you to pay wages and other cost inputs while you continue growing your business.

Trade and Import Finance

Trade and Import Finance is a line of credit for the purchase of material supplies, including petrol. With a facility in place, you can use the credit to pay suppliers and receive 90-180 days to pay the money back. This is particularly useful for importers and wholesalers so they don’t have to dip into cash reserves as they move through their sales cycle. If you sell your goods or services on credit terms, your customer may have paid you for your work before you are due to repay the finance!

Development Finance

In the past, getting small residential developments funded by your major bank or home loan lender wasn’t too difficult. These days it’s considered a commercial loan type and most banks are not prepared to venture into this space. We help you access specialist lenders who are comfortable funding developments. If you have an experienced builder working to a feasibility study, demonstrating strong enough funding you should be approved quite simply.

Private Lending

Private lending is a no or low doc commercial loan solution available to business. Private lenders could be funded by wealthy individuals, investor groups, superannuation funds, or even other lenders, and are secured by property or high value assets like luxury cars. Private loans differ in regulation standards compared to regular commercial loans, and there is significant variation in rates, fee structure and even intent to fund. Whilst Private Loans can be an excellent resource with flexible features because of their loosely regulated nature, it is strongly recommended being guided by professionals (like us!) who can demonstrate strong experience in settling these kinds of loans before signing letters of offer or paying fees.

FAQs

Which kind of commercial lenders should I be considering for my commercial loan?

Major banks typically wish to deal with the strongest businesses. This means they commonly want to see two years of financial statements from a business applicant, demonstrating a consistently profitable business with no ATO debt.

Depending on growth and decline phases or government intervention and regulation, these banks will restrict certain industries and have preferences for others — which can make things hard if your industry is one that’s restricted!

Whilst there are commonalities between the banks preferences, they constantly change. This is why it’s important to use a expert experienced in commercial lending (like we are!).

All of this shouldn’t be a reason to exclude the major banks. If your business and finance need is a match for a major bank, they can offer a broad range of products and compete with each other to offer the lowest rates for their desired customer type.

The main point to note is that a bank may or may not be the best fit for your commercial finance needs, and we can help figure this out! We compare finance products from a variety of different lenders to ensure you always get the perfect finance solution for your situation.

What commercial lending rates can I expect?

The interest rates and fees you’ll be offered on your commercial finance solutions varies depending on the loan type and your individual circumstances and financial situation.

With each different product, lending criteria apply. We assess your needs and borrowing power against relevant lending criteria and structure your finance solution so that you get an optimal outcome regarding the cost-effectiveness of your commercial finance.