Business Plan from an Accountant?

Hi All, after signing up to an online business plan site and spending a week doing one. The bank I enquired with about a Business loan has said they require a business plan that's been done by an accountant. Everyone I have spoken to previously has never said the word accountant.

Anyone have any ideas? just use any accountant?

Thanks.

 

Its for a Gym.

 

Sounds like you are going for an unsecured business loan - is that correct?

The business plan must be prepared by you and the lender (I'm assuming you are going through ANZ) will have a template you can use. The Accountant is responsible for preparing other supplementary documents such as cashflow projections.

You also need to provide a bunch of other documents such as the last 2/3 years financials for the business you are purchasing, your resume, etc.

Are you going directly to through the bank or via a broker? Either one should give you a list upfront.

 

It's through Westpac.
The business is a new venture.
The security is property owned outright,
I require 50-60% of the property value, they said 80 is the max.
Doing the Business loan as I have been told because its a new business, that I have no chance of getting the equipment leased.

I have a business plan done through Live Plan. But Westpac have said in the list of documents a B-Plan from an Accountant.

Thanks.

 

You could use a different lender, get cash out, then refinance and get owner occupied rates - potentially.

 

So the security is a commercial property that you own outright and you want to set up a new gym. You need the funds for the equipment and possibly fitout is that correct?

 

PS: Just put some other stuff over on B-Chat here: Just started a new Company?

 

No the security is a residential property.

Yes, funds are for equipment and fitout.

I have cash to keep it going for a period.

 

Ok got it - where is the business being set up? At the same residential property or is it at a different commercial property?

 

No the security is a residential property.

Yes, funds are for equipment and fitout.

I have cash to keep it going for a period.

Different location, it will be setup in a commercial property (leased).

 

Ok that makes sense - you are going about it in the most difficult and expensive way.

I would look at doing an equity release with a lender that allows cash out for business purpose (a lot of lenders don't but some do) and you will get the rates at resi rates and over a 30 year loan term which is not going to hurt your cashflow.

Additionally you can get equipment lending without needing to use all or some of the equity against the property. You don't need to go through the business lending path. Westpac isn't the right lender for what you are trying to do.

 

All the Leasing companies i rang said I would need 30% deposit on the leased goods and as its a new business the max would be $50,000 or so, which is not feasible.

I personally bank with Westpac, so I rang them, they said they wouldn't lease against the equipment and I needed a business loan. The business loan looks ok, as the payment would be a 1/3 of the Lease payments.

Thanks.

 

It depends on how much funds you need for the project. You may need to use some of the equity release funds and some of funds available from equipment lending.

They are correct about the 30% for the equipment which is why I'm saying some of the amount can be funded under equipment lending however that is only if you need some of the equity release funds for other things like cashflow, fitout, etc. You can even do fitout lending via equipment finance and for that you need a 50% deposit.

Lenders that do cash out for business lending purposes include Resimac, Citibank, Pepper, etc.