This form of financing is available to assist in the funding of business growth or expansion, consolidation of business debts, capital and equipment purchases as well as the purchasing or development of commercial property for owner occupation or investment; essentially any worthwhile business purpose.
A term loan facility offers the flexibility of fixed or variable interest rates, with a choice of repayment options to cater for your businesses cash flow requirements.
Most Lenders/financiers allow the repayment of term loans up to 15 years. Maximum lending margins are generally assessed at 70% on the valuation of a commercial property and 80% on a residential property. There are a few financiers from our panel of lenders who will consider lending above these margins, however restrictions may apply.
Some financiers from our panel of lenders will allow a period of interest only repayments within the overall loan terms, which is ideal to assist in reducing repayments.
Refer also to the Commercial Bills section for another form of term loan financing.
A Bill can help you manage cash flow more effectively, by making payments only on maturity of the Bill and also provide interest rate protection and flexibility.
Essentially, a Bill is a promise to pay to the lender a specified amount on a specific date in the future (Bill Maturity).
This form of financing is very flexible and can be tailored to suit your businesses cash flow. Bills can generally be drawn for periods as low as 30 days and right out to 180 days.
Interest rates are priced off money market related rates, therefore ensuring a competitive interest rate.