Business Banking & Finance Small business loan length

Discussion in 'Starting & Running a Business' started by Tony Fleming, 20th Jun, 2015.

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  1. Tony Fleming

    Tony Fleming Well-Known Member

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    Hey just wondering if anyone knows the maximum term length you can have on a business loan <500k. Not sure if it matters but its a franchisee loan if that effects anything. Thanks on advance
     
    Tony Fleming, 20th Jun, 2015
    #1
  2. geoffw

    geoffw Moderator Staff Member

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    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.
     
    geoffw, 21st Jun, 2015
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  3. SonOfTrigger

    SonOfTrigger Well-Known Member

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    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.
     
    SonOfTrigger, 22nd Jun, 2015
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  4. geoffw

    geoffw Moderator Staff Member

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    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.
     
    geoffw, 22nd Jun, 2015
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  5. imbi3

    imbi3 Well-Known Member

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    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
     
    imbi3, 11th Jul, 2015
    #5