Business Banking & Finance Finance question for established business

Hi,

I have a contract catering business in Brisbane, we have an exclusive contract to a wealthy client and for the last 3 years the business has done quite well.

I am looking at expanding but I don't have enough equity in my properties to set up what I want to do.

Has anyone obtained finance to expand a company (or set up subsequent shops) that is non secure?

I have had a look at easy style loans, but around the 100-150k mark the payments over a short amount of time are too much and I think this would affect the cashflow. So I need non secure over 5 years. Not sure if this is possible.

Banks want security but my accountant says that I may be able to get a directors loan however its hard to see I could get this without security

Any suggestions?

 

There are a couple of ways to do this.

First is cashflow lending - ANZ and CBA do this well (ANZ's product is far superior) and you are looking at around 5-7 year loan term and rates are circa 7%. The biggest issue with this product is servicing.

There is also debtor/invoice finance - this is an awesome product if applicable to your business.

Then there is pure unsecured business loans and the interest rate will be highly dependent on the amount of documentation you have and the overall strength of the application but its going to be high at circa 12% but the loan term could be set to 5 years.

Since other people are reading this thread its worth mentioning that Medico's can borrow against their ABN (so no physical asset, loan term 15 years, interest rate circa 6.50%) and Accountant's, FP's, Insurance Brokers, Solicitors etc can borrow against their books. They have a couple more products available to them