12 Aug

Unsecured Business Loans – what can they be used for, who can apply?

We were recently approached by one of our established clients to fund $100,000 worth of carpentry, fitout and lighting for his leased factory premises to expand his business and services to his clients.

Our client has had a long career in motorsport and allied businesses and is now focused on Automotive Photography and Video production and needed to upgrade his business facilities to keep up with growth in his business.

In years previously, organising finance for fixtures and fittings was a fairly simple process, however over recent years we have seen many changes to the way finance companies view these assets, and trying to organise finance for this particular asset categories has become challenging -

The challenges we had to overcome included:-

  • The types of assets, our client wanted to finance are considered to be of tertiary nature with little if any value and therefore not financeable via asset finance with many major Banks/Financiers.
  • The premises being fitted out is leased and a Landlords waiver would have been required, allowing a financier access to its financed assets, which tends to be difficult if not impossible to obtain.
  • An asset finance product wouldn’t allow us to stagger payments to several suppliers with different terms of payment and estimated completion dates making a settlement date complicated.

Our Solution was to organise an Unsecured Business Loan.

After interviewing the client we determined that they fitted the criteria for an unsecured business loan, the minimum criteria being:-

  • Business needs to have acceptable credit rating and hold an ABN registered for GST for a minimum 2 years
  • Maximum Loan amount $300,000
  • Maximum Loan Term is 3 years
  • Directors Guarantees required where the applicant is a company
  • Applicant must be a property owner

We then moved forward and collected the documents required to get a formal approval which was simply an application form and 12 months bank statements.

In less than a week we had the loan approval and funds deposited to our clients account enabling him to make payments as required, at his discretion and unsecured.

“I needed help with a business loan for my small business and Laurentide were able to find the right product for me with wonderful efficiency. The whole process from contact to completion took less than a week and I’m very happy with the rates and the result.  Thanks again”

For more information and a quote please contact your broker.

Leave a Comment