Commercial Loans
A commercial loan can be used for a wide range of purposes – to support a business, including assisting with cashflow; reducing the cost when making large orders with suppliers; growth and expansion; purchasing stock and equipment; giving the business a facelift with office renovations or to help with unexpected expenses such as maintenance, insurance premium and energy cost increases. Small business loan products include:
Term loans: This type of loan involves a principal sum borrowed and advanced to the customer, which is then repaid in instalments over a period. Term loans can be over periods as short as 3 months and up to 10-year terms. Repayments can be monthly, weekly, and even daily. Interest rates can be fixed or variable, and initial interest only repayment terms may be offered.
Overdraft: An overdraft is where the bank authorises a business bank account to go temporarily into a negative balance. There is usually a fee involved for every time the account goes below a zero balance, as well as an interest rate applied to the overdrawn funds.
Line of Credit: A line of credit is a separate account which can be drawn upon by the business up to the approved limit. Each month the business is required to repay the interest on the drawn funds, however repayment of the principal is optional provided the interest repayment is being met.
Small business owners don’t always have traditional financial records like a PAYG borrower might. This could mean some lenders may not be as accommodating when it comes to issuing funds. At Coastal Finance, we understand what lenders are seeking and we help business owners obtain the finance they require.