business loan

Business Loans

Need Business borrowing and Commercial Loans?

Business is all about profit and cash flow. Without a profit, your business dies very quickly. That's why loans for business purposes should be all about enablement, not dragging you down even more. It's astounding the interest rates most businesses pay for unsecured loans. With payments so high it's hard to imagine any business being able to make repayments. That's why we're here to help show you the best alternative.

However, there's plenty of good and effective ways to fund your business needs:

  • Business loans secured by commercial or residential property
  • Chattel mortgages for vehicles or equipment
  • Leases for vehicles or equipment
  • Novated leases for employee vehicles

We also have commercial loans available, so you can buy a place to run your business. You could even make it part of your superannuation investment through a self-managed super fund. Since we’re also financial advisers too, you know you’re getting the best and most qualified advice you can.

Business Loan FAQs

  • How much can I borrow?

    The number one most asked question, with an answer that’s different for each person. Because it's all depending on what your income is and the value of the property(ies) that you have to use as a security for the loan. (See the answers for "Serviceability" and "LVR" below)

  • What is a "LVR"?

    LVR stands for "Loan to Value Ratio." It’s calculated by dividing the loan amount by the value of the securities involved. Lenders limit the amount you can borrow according to this LVR rule. Generally, most people can borrow up to 80% LVR (that’s 80% of the value of the property) without penalty. In some cases, by paying for "Lenders Mortgage Insurance" (See "LMI" below) up to 95% can be borrowed, or even 97% where the cost of the LMI becomes included within the loan amount ("capitalised LMI").

  • What is "serviceability"?

    Your ability to generate enough income to cover loan payments is described as "serviceability." Each bank has its own way of calculating how much income you need. The interest rate will be higher than present rates in the calculation to allow for rates going up in the future causing undue stress on your financial situation. Credit cards and loans not being refinanced will have payment amounts increased to cover the amount owing as if the facility was fully drawn. That means that if you have a credit card with a very large credit limit it will be harder to qualify for a loan.


    Part of the equation that most people ignore is what they spend their money on. With your broker being required to make reasonable enquiries into your spending, including examining bank accounts, to verify your estimates of your living expenses. While the banks will have minimums for each family situation, they want it to be adjusted upwards to match your particular situation. Where you have obligations such as insurances, pay TV and club memberships, those amounts will all need to be added on top of their minimums or your other normal living expenses.

  • What is "LMI"?

    "LMI" is "Lenders Mortgage Insurance." This insurance doesn't protect you, it protects the lender. Many lenders will ensure all of their loans, only passing this cost to you when you’re over 80% LVR (see LVR question above). A few lenders will go up to 85% LVR without charging you for LMI, and several of the major banks will allow up to 90% LVR for certain medical professionals.


    LMI costs vary according to the LVR and amount borrowed. With slight variations from one lender to another. It's not unusual for a borrower to be charged something on the order of $10,000. Part of your mortgage broker's preliminary assessment will be to provide an estimate of what the LMI charge will be for the recommended lender. Your broker should also be able to show you how the LMI varies from lender to lender in your particular situation.

  • Is loan interest tax deductible?

    That's a great question, to answer that you’ll have to head over to GraceFinancial.com.au, our financial planning website, and learn more about tax-deductible investment expenses there.

  • What documentation do I need to provide to apply for a loan?

    It varies slightly from bank to bank, but for PAYG income earners this would be typical:


    • Your last two payslips
    • Your last Notice of Assessment (Find it at MyGov - ATO) or Group Certificate (from your employe)
    • ID verification with Drivers Licence & Passport or Birth Certificate + proof of change of name, if applicabe
    • Medicare card
    • The last six months of statements for all transaction accounts and credit cards
    • Rates statements for existing properties being used as security
    • The contract for properties being purchased (unsigned but with purchasers' names and purchase price)

    For self-employed borrowers, generally you’ll need to have your ABN for two years, and most lenders want two years of financial reports, tax returns and Notices of Assessment too.

So contact us today for an obligation free consultation. Call 02 4905 0250 or complete our contact form.

Grace Loans is a division of Grace Financial Services. James Massey and Bethany Massey are Authorised Credit Representatives of BLSSA Pty Ltd, , Australian Credit Licence number 391237. Authorised Credit Representative nos. GFS: 472092, James: 472093 & Bethany: 513202. Content of site may not be fully up to date as lenders are constantly changing their loans and policies. Any advice provided on this website is of a general nature not taking into account your personal objectives and situation. Such matters are important to consider prior to taking any action. Please make an appointment to discuss your specific situation so that appropriate advice may be given with regard to suitable products using current information.