Business Finance Services Australia

How much can I borrow?

Excellent question!

If you are buying a business then this is a crucial aspect of what size business you can afford. The answer, however is dependant on a number of variables.

The amount will vary considerably between different people even on the same business.

Some of the variables will be

—-* Type and location of business you are buying. How well established is it OR is it a new operation?

—-* Financial information available on the subject business

—-* What cash or equity in property you may be putting into the purchase

—-* What other security you may be able to provide

—-* Your working background

—-* Your credit history and current level of borrowings

We would need to find out all of these items to come up with an educated estimate of your borrowing power for a particular business type. We can then assess what can be lent against the assets being put forward as well as in some cases the business being purchased. Give us a call or an email and this can be assessed very quickly.

 

A common area overlooked by new business purchasers is the allowance for all the relevant business purchase costs. These will include stamp duties, legal costs, due diligence costs, initial business insurances, stock valuation, borrowing costs, working capital, rent in advance, rental bonds, supplier bonds, major supplier transfer costs and initial training costs. Some industries will have specific additional expenses that need to be allowed for (consult us for this). As a rough rule of thumb, you should allow at least 10% on top of the purchase price to cover these. If the business carries a large amount of trade debtors, this also need to be allowed for.

 

As long as there is sufficient security available and the business income is sufficient, it can be possible to borrow the full purchase price plus relevant purchase costs. However, it may be prudent to consider putting in cash to reduce your exposure.

 

Remember, we have been assisting clients with raising funds for business purchases or many years and we will have seen just about every situation that is possible. If it can be done, we will find a way to do it!

 

Once we work out what can be done, we can then propose the best mix of loan facilities to suit the requirement. For most situations, this will be a suite of facilities designed to match the business cashflow and deliver the lowest repayments in order to provide flexibility. Of course, we undertake a review of applicable interest rates, fees and loan terms to ensure that you are being provided with competitively priced facilities and terms that will keep you relaxed. As there are such a wide range of loan products, it is not feasible to show interest rates on this site. We would look to tailor loan products to individual requirements.

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The easiest way to find out what you can borrow in your own circumstances is to either ring us on—————–-(02) 6368 7161 or send an email to us at: admin@businessfinanceaustralia.com

 

 

 

 

 

 

 

 

 

 

 

 

    Why not give us a call on: (02) 6360 0622

     or email us at:                                                                                                 

     to discuss how we could help raise the funds your business deserves or    

     any questions / concerns you may have.