Business Loans to support your business no matter whether you’re a startup looking for a small business loan or a mature business looking for cash flow support or your next acquisition.
Cash Flow Loans bring forward revenue recognition of expected future company incomes, and allow you to access your future payments before the cash has actually arrived. So you can access money from the future, without having to chase your customers for their payments.
There are several reasons why you might want to bring revenue recognition forward in your business:
Different Types Of Business Loans
Overdrafts & Lines of Credit are great to support the day to day operations for business and aid cash flow through times of growth or a seasonally quiet period.
Equipment Finance can increase your revenue and efficiency by investing in plant and equipment. You can also raise capital against the equipment, vehicles and machinery you own in your business.
Business Loan Case Studies
Equipment Finance Case Study
Equipment Finance Case Study: $600k capital raise for a competitive advantage for a manufacturing business (equipment as security)
Our client had purchased manufacturing machines at auction they knew they could repurpose and create a product they needed to previously import from overseas.
Once operational the capability as the only producer in Australia would give them a competitive advantage.
Requiring $600,000 to bring the assets online the business owner had been told by a previous broker they would need to put the family home on the line to raise the level of capital required.
We could see a solution that didn’t require property.
Looking at the business owners asset register we were able to raise $600k against their existing machinery assets using forecasted earnings to demonstrate serviceability.
Cash Flow Loan Case Study
$3M restructure and extension of major bank credit facilities for a home furnishings retailer (monthly repayments lowered by $20k)
A manufacturer, wholesaler and retailer of quality home products, our client came to us seeking funding for a bespoke software solution.
Looking at their major bank loans they asked us to review all of their credit facilities which consisted of secured and unsecured term debt totalling $1.8M, a trade finance line of credit with a $750k limit and a $100k business credit card.
While being a strong, well established business they were concerned with the potential for a downturn in consumer spending over the next 6 months and were open to improving their business cash flow if a change in bank could support a material difference.
Working with another major bank we negotiated for an increase in their trade facility by a further $250k to a $1M limit and an extension from 180 to 210 days which better represented their product cycle.
The terms we negotiated also extended a new unsecured overdraft of $100k and replicated their business credit card limit of $100k.
A previous equipment finance line their current bank had extinguished was reinstated by our chosen lender.
All of these facilities were separated from the family home offering greater flexibility and increasing the ability to remove the home from business debt altogether in the future.
Looking at their core debt we gained agreement to extend the term to 15 years. The restructuring of this term loan lowered monthly repayments from $40,000 per month to $20,500.
This improvement to monthly cash flow gave our business owner significant confidence in their future cash flow management strategies and they described the outcome as exceptional.
Unsecured Overdraft Case Study
$1.5M Major Bank Unsecured Overdraft to a Professional Services Business
Our client came to us after months of delays with their existing bank seeking a line of credit to support their business plans.
Despite clearly being profitable and having upside to their business their existing bank couldn’t deliver a line of credit that didn’t involve taking security over director property.
Second tier unsecured lenders offer both term loans and unsecured overdrafts or lines of credit – but SO DO major banks.
Provided servicing stacks up for the bank facilities along with other business lending criteria, lines of credit can be secured with accounts receivable or with directors guarantees – neither of these arrangements require property security by default.
Understanding our clients business we positioned an application with our recommended bank and achieved an approval for $1.5M overdraft limit within a week of submission.
Business Loan FAQs
A business loan is a financial arrangement where a lender provides a specific amount of money to a business with the agreement that the funds will be repaid over a predetermined period, along with any interest and fees. Business loans and small business loans are designed to provide companies with the capital they need to cover various expenses, whether it’s for day-to-day operations, cash flow, business investment or commercial property.
Business loan options include:
- Term Loans: Both secured and unsecured, these loans for business are ideal for long-term investment or debt consolidation.
- Lines of Credit & overdrafts: these provide flexible access to funds for day-to-day operational costs.
- Equipment Finance: Designed to help businesses invest in new machinery or equipment to increase efficiency and revenue with business equipment loans.
- Commercial Property Loans: Ideal for businesses looking to invest in commercial property or property development.
- Invoice Finance: Provides immediate cash flow by allowing businesses to get an advance on their outstanding invoices.
- Import & Trade Finance: Specialised lines of credit for businesses seeking to import goods or strengthen their supply lines.
Terms, interest rates, and repayment schedules can vary depending on the type of loan and the specific financial situation of the business.
We help business owners secure business funding ranging from $10,000 to $50 million.
The time different types of business loans and different lenders take to approve and settle applications can vary. Same day funding is possible in less than 24 hours under certain circumstances. As a general rule low-doc or no-doc applications are the fastest and full-doc bank applications take the longest.
Yes startup businesses can access small business loans including equipment finance, some lines of credit and secured loans depending on cash flow forecasts and the Directors personal position.
Equipment Finance business loans can help you invest in new machinery or equipment to increase revenue and efficiency. You can also raise capital against existing equipment to consolidate debts or invest in an opportunity.
No, in many cases you don’t need property security to obtain a business loan. While it can sometimes be advantageous to offer property security for a business there are many business loan solutions that don’t require directors to offer up property.
Nationwide Business Loan Services in Australia
Dark Horse Financial offers business loans solutions across Australia providing essential financial support to businesses of all sizes. These services cater to the diverse needs of businesses, whether it's for a startup business to get on the right track, expand an existing business, or navigate through challenging times.
With a wide array of loan options and flexible terms, Dark Horse Financial ensures you get the best business loans possible. Business loan services are provided across Australia, including, business loans Melbourne, business loans Brisbane, business loans Sydney or small business loans QLD just to name a few of our servicing locations.