The Ultimate Guide To Commercial Finance Brisbane
Commercial Finance Brisbane: What does it mean for You?
If you’re in the world of business, you’ve probably heard the term “commercial finance” several times. But despite being a common business jargon, maybe you’re still unsure about what it means and how it can benefit your business. So, a quick definition: commercial finance refers to the various business finance products that include short- and long-term solutions, offered by providers outside of the business. It also ensures that both small and big businesses can thrive and hit their targets, instead of missing out because they have to wait until they make enough cash to re-invest. Think this service is what your business needs? Read on to know more about commercial finance Brisbane.
Where Can You Use Commercial Finance?
Picking the right lender or bank to help you with commercial finance can lead to the success of your business. Whether you’re a small business owner or the CEO of a huge company, you can gain an advantage once you’ve chosen a suitable commercial loan.
Commercial loans are specifically designed to help fund commercial premises. They can help with the following:
Investing in commercial property has a lot of advantages—no matter what business you’re in. Commercial leases can be long-term, and if there’s a shortage in a certain suburb or city, the investment can be pretty profitable.
A commercial finance Brisbane may be right for you if you’re looking for new premises, or if you just want to take advantage of the right deal once it comes along.
Giving your commercial loan a health check every now and then is a good move. It can give you access to features that fit your business and its growth, or lets you capitalize on low-interest rates.
Increasing Working Capital
Working capital refers to the money used to manage daily operations. If you’re a small business owner, chances are you’ll take out a loan to meet operational costs until your earnings reach a specific amount.
What Types of Commercial Finance Brisbane are Available?
Commercial loans can vary from short- to long-term loans. They may be tailored depending on the type of customer too, for example if they’re for SMEs (small and medium enterprises) or corporates and SMSFs (self-managed super funds.)
Here’s a summary of the main ones you can choose from:
Business Term Loans
These loans are set at a specific term. Repayments can also range from the traditional principal and interest to interest-only for a limited time.
They’re normally applied when investing in or expanding the business, can be set to a short- or medium-term, and be unsecured or secured against real estate property, equipment, or other assets. This commercial finance Brisbane type may also be offered at a fixed or variable interest rate.
Commercial Property Loans
These are used to buy real estate property for investment. They’re usually long-term, offered in a fixed or variable interest rate, and offer repayment options at the traditional principal plus interest or interest-only.
An overdraft can help your business manage its cash flow and other business situations as well. It doesn’t require minimum regular repayments too, as long as the balance you owe is within the maximum credit limit.
A commercial overdraft may also be unsecured or secured by a mortgage over commercial, residential, or other types of security.
This commercial finance Brisbane is used to finance commercial or residential properties acquired by a self-managed super fund.
Cash Flow Finance
- Trade Finance – this is ideal for companies involved in domestic or international trade. You can use this to draw funds to pay for an order placed on a supplier. The repayment is then set at a certain term in days, which matches the time your customer is expected to pay you.
- Invoice Discounting – this finance option assists with working finance requirements by promoting cash conversion. This is especially helpful if your business experiences strong growth or has seasonal requirements.
This type of commercial finance Brisbane helps fund the purchase of cars and other equipment that will be used for expanding a business.
These are unconditional written orders by a party addressed to a bank. They’re statements stating that the bank will be paid a fixed amount (the bill’s face value) at a fixed date. The term of the bill can be renegotiated as well, by drawing a new Bank Bill for an agreed number of days at each rollover.
Bank and non-bank lenders may even offer products targeted for different business sectors. The types of industry will vary from one lender to another, and will also depend on their credit appetite and when the policy is applied.
Why Choose Us for Your Commercial Finance Brisbane?
There are always potential risks and benefits involved whatever type of finance you choose. All businesses are different, which is why you should take time in choosing a finance package that’s designed for your specific needs.
Our team at mhf Finance is committed to providing you with easy yet flexible solutions to finance your business requirements. We’ve witnessed our client’s businesses grow both in sales and productivity—allow us to do the same for you.
We’re fully accredited by both bank and non-bank institutions, meaning we can help you find that perfect financial package that aligns with your business goals. Ready to get started? Then give us a call and let us fulfill your commercial finance Brisbane needs!