Join Australia's most dynamic and respected property investment community

Small business loan length

Discussion in 'Small Business' started by Tony Fleming, 20th Jun, 2015.

  1. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    613
    Location:
    Sydney
  2. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    2,832
    Location:
    Canberra
    It would depend on the loan type. For instance, a loan to buy a business which is in a leased premises will be limited by the length of the lease.
     
  3. SonOfTrigger

    SonOfTrigger Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    99
    Location:
    VIC
    I think from memory when I bought a business there were 16 years left on the lease for the premises so the bank would only go to 15 years for a business loan.
     
  4. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    2,832
    Location:
    Canberra
    I was trying to sell a business which only had three years left in the lease. I put a low price, but a condition that a lease renewal would prompt an extra payment. This went through OK.
     
  5. imbi3

    imbi3 Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    69
    Location:
    VIC
    Depends if the particular franchise is accredited with the bank. You could possibly get 10 years or remaining of the lease term. If you are secured by residential property, you could possibly get up to 30 years. Happy to discuss further if needed