Business loan best rates and serviceability

Does anyone know the best opportunities in small business loans. Who are the better lenders who offer good rates? Which lenders offer up to 95% lend? Do many people run businesses? Which lenders are the best for serviceability with company's and trusts?

 

Whats the security?

 

Cash, property and the business itself

 

You can generally borrow up to 80% of the value of real property, but can be difficult these days. Business is not something tangible and difficult to borrow against but can be done with some specialist lenders. ANZ used to be good at one point.

 

Thank-you looking at the idea for the purchase of new businesses.

 

I have been looking at nab as they seem to offer a comprehensive range of loans specifically for business and quite competitive rates

 

Depends on what you need the money for, but I'd rank ANZ more favourable on the terms and conditions than NAB. Rates are better too.

That said, there's so many varieties of business loan, that there really isn't a simple answer about the best lender. It's really a balancing act of several different factors. Some might be more important than others depending on your needs.

 

Thanks Peter do you do a lot with business loans? How do you find anz with serviceability? Much different with or without security?

 

Lenders aren't particuarly open with their servicing for commercial, but if their residential policies are any indicator, I'd suggest that the ANZ is fairly conservative.

It's also again, not quite that simple. ANZ & NAB offer 15 year loan terms. Several other lenders go up to 25 years. This changes the servicing dramatically.

Also due to the loan term, whilst ANZ has some very competitive rates, others with longer loan terms tend to be have lower repayments despite having higher rates. It's a choice of cheap rates or good cash flow.

The NAB has an interesting model for small loans. If the lease covers double the interest repayments, they'll fund it. Very simple. The catch is that they review the loan every time the lease expires. If you don't have a renewed or replacement lease in place, they'll expect you to demonstrate servicing or they'll way the loan to be closed. For me this would be a deal killer.

 

Would recommend Judo Bank. Know someone there if you want a referral in. They are an ADI, and specialise in business loans. More flexible than majors and can take into account cashflows.