business loan

Business Loans

Need Business borrowing and Commercial Loans?

Grace Loans specialises in secured business lending using business assets or real estate assets as security for the loan. We don't fund start-ups or businesses without a significant asset to be used as security.

Our commercial loans for commercial zoned premises only go to 70% LVR. Alternatively, you can cash out from your existing Owner Occupied premises up to 80% LVR. This basically means that you'll need to either have a 30% Deposit or plenty of equity available. We suggest speaking to your accountant or Financial Planner before making the decision to apply for commercial finance.

We can do cash-flow boot loans to businesses with two years trading history under the same management and directorship.

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

Business Loan FAQs

  • For what purposes can I borrow?

    The most common scenario is buying a commercial property such as a warehouse or shop, where the real estate provides security for the business loan. You can also borrow for equipment or cars that have a value that is equal to, or exceeds that of your proposed loan. 

  • What about equipment for my restaurant, cafe or bar?

    We can provide finance and leasing for kitchen, coffee and catering equipment including displays and washing equipment. You can choose to rent the equipment, rent while working towards owning the equipment outright, or exchange the equipment for something different if it doesn't suit you. 12 and 24 month contracts are available for leases or leases with intention to to buy. Certified used equipment and new equipment are both available to lease. 

  • 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.

  • Can my business afford a loan?

    You'll need to look at your financials and make sure your taxable income shows enough surplus for the proposed loan repayment and living expenses. Start by looking at all liabilities that you and your business own such as a line of credit or a credit card. Work out what the minimum monthly repayment would be, should you fully draw all of those liabilities at the same time and add that to your monthly budget, checking for sufficient surplus to cover the proposed loan repayment and living expenses. If you have sufficient funds in surplus, you are in a good position to send through your information for us to assess more accurately your capacity to borrow. 

  • Is loan interest tax deductible?

    We would expect that the interest on your loan should be tax-deductible as long as it relates directly to the operation of your business. Discuss your thoughts with your accountant to find out specifically what, how and when you can claim certain expenses.

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

    It varies slightly from bank to bank, but for self-employed, partnerships, companies or sole traders it will generally include:

    • The last two years of accountant prepared tax returns for all company directors (company tax returns and personal tax returns)
    • Profit and loss statements and company financials prepared by your accountant 
    • Your last Notice of Assessment (Find it at MyGov - ATO)
    • ID verification with Drivers Licence & Passport or Birth Certificate + proof of change of name, if applicable
    • The last six months of statements for all transaction accounts and credit cards
    • Rates statements for existing properties being used as security
    • A business plan for proposed businesses or take-overs 

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

Grace Loans and Bethany Massey are Authorised Credit Representatives of BLSSA Pty Ltd, Australian Credit Licence number 391237. Authorised Credit Representative nos. GL: 523940, 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.