Commercial Leasing
We can assist you with finance for any income producing plant and equipment that a business may utilise, including:
- Motor Cars
- Commercial Vehicles, Trucks, Buses
- Vehicle Fleets
- Engineering Equipment
- Materials Handling Equipment
- Medical and Dental Equipment
- Office Equipment and Computers
- General Business Equipment
Products & Facilities
Various facilities are available depending on taxation implications and your commercial requirements:
- Finance Lease
- Novated Lease Agreements
- Commercial Hire Purchase
- Chattel Mortgage
- Master Equipment Finance Agreement
- Continuing Guarantees
Amounts Financed
Finance can be arranged for amounts of $20,000 to $1,000,000. Amounts outside this range can be considered on a case by case basis.
Application & Approval
A simple application form is required along with a minimum amount of documentation. Approval is normally granted within 24-48 hours.
Property Purchases
Finance required to assist with the purchase of Retail, Commercial and Industrial Properties. Property purchase may also be for the purpose of Property Development and Construction.
Borrowers will need to demonstrate ability to sufficiently meet servicing costs by providing history of profitability over a 3-year period.
Refinance
There are many reasons for refinance, some of these being dissatisfaction with current lender service or relationship, seeking better pricing, or to segregate assets held by one lender. We will seek to manage your application for the purchase of a new Retail, Commercial or Industrial asset and refinance of existing (commercial or residential) assets via separate lending sources wherever possible. This will provide you with the long-term advantage of segregating your assets to utilise the equity in any one of your assets for future growth.
Amounts, Terms & Lending Ratios
Loan amounts from $200,000 up to $50 Million. Amounts over $50 Million will be considered on a case by case basis.
Loan terms of 1 – 5 years for Interest Only. Up to 10 years available for Principal & Interest facilities.
LVR’s range between 66% - 75% (A guide only, as LVR’s will vary depending on the location, structure of the loan and nature of the asset.
Property Development & Construction
For the purpose of construction and development of commercial office, industrial, retail, and medium density multi dwelling residential properties and sub-division of broad acreage.
Funding towards property acquisition as part of the development application can also be arranged. Where the borrowers equity contribution may also be less than the required level requested by the lender, we will seek the provision of Mezzanine or Second Mortgage Funding for projects showing quality. The percentage of “Gross Realisation Value” of the completed development, or the “Hard Costs” is the basis generally used to determine provision of construction finance.
Note that Lenders may require a certain percentage of pre sales prior to advancing funds.
Creative debt and equity structures can be sought to suit individual property developments.
Amounts, Terms & Lending Ratios
Generally $1 Million up to $50 Million. Anything over this is considered on a case by case basis.
Generally the preferred maximum term is 2 years, but can be longer for larger projects.
Normal exposure up to 90% of total project cost with Mezzanine debt and quasi equity. Up to 80% of hard costs of project with equity to be contributed to the project prior to funds being drawn under the loan facility.
Risk Participation Loans can provide loan finance to a property developer for up to 100% of the project costs. Typically, two-thirds of the funding is treated as notional debt, the remaining third as notional equity – This is arranged through a major funder who also acts as Financial Advisor to the project.
Mezzanine Debt & Equity Funding
Where there is a shortfall in the equity component and the borrower has minimal or no equity available at the time of application, we will seek Mezzanine or Equity Funding by way of a 2nd mortgage behind 1st mortgage. The project will need to be considered a high quality project by the Lender.
Equity funding is more expensive due to higher risk and pricing of Mezzanine or Second Mortgage finance is determined on a 'case by case' basis. Structure of the project funding will depend on a variety of factors, taking into consideration aspects such as the quality of the project; end value; level of pre-sales; ability and history of the involved parties (developer and builder) to complete the Property Development & Construction.
Cash Flow Lending
Companies that are growing strongly or have seasonal sales fluctuations may require Cash Flow Lending. These companies are usually manufacturer, wholesaler or service-based businesses that sell on credit terms.
Lack of cash flow can prevent you from attaining your full potential, however by converting your accounts receivable into cash and capitalising on your assets you are then free to use those funds to develop your business. This could be up to 80% of your sales invoice value and unlike an overdraft, the funding level rises in line with your credit sales as your business grows.
While you are time-strapped with the day-to-day running of a growing business, we can source a Lender specialised in this type of funding to arrange access to cash funds for your business.
Specialised Assets
Properties requiring specialised management in the service industries such as Registered Clubs or Hotels; Motels; Child Care Centres; Nursing Homes; Service Stations and Mechanical Operations come under the category of Specialised Lending.
We can assist in seeking a lending avenue for your Specialised Property Acquisition and/or Refinance.
LVR's are generally restricted between the range of 50% to 65% and this varies in relation to the type of asset. The level of experience in operating the specialised business being purchased/refinanced is a vital key to success in obtaining funding. As a result success in sourcing finance for Start-Up operations is unlikely.
