business loan Wollongong

Wollongong businesses can access six main types of lending, and choosing the right one matters more than most owners expect.

• Term loans, a lump sum repaid over a set period, used for expansion, acquisitions or major purchases

• Overdrafts and lines of credit, revolving facilities that smooth out cash flow gaps

• Invoice or debtor finance, which advances funds against unpaid invoices

• Equipment and asset finance, secured against the machinery or vehicle being purchased

• Trade and import finance, for businesses paying suppliers ahead of receiving stock

• Commercial property loans, for buying premises

Why the choice matters

Using a short term working capital product to fund a long term asset, or tying up property security for a facility that did not need it, creates problems later. Invoice finance in particular suits Wollongong subcontractors supplying larger construction and industrial clients on long payment terms.

If you are a business owner also looking at residential lending, see home loans for business owners. We start with what the money is actually for and how it will be repaid, then match the product and lender to that.

A standard full documentation business loan application needs two years of financials, personal tax returns, bank statements and an ATO portal. The full list:

• Two years of business tax returns and financial statements, including profit and loss and balance sheet

• Your personal tax returns and notices of assessment

• Recent business bank statements, usually six to twelve months

• Current ATO integrated client account, showing any outstanding tax debt

• Aged debtors and creditors listings

• Details of existing business and personal debts

• ABN, ACN, trust deed or company constitution where relevant

Lighter options

Smaller facilities and some cash flow lenders work off bank statements and ABN history alone, with much lighter documentation and faster turnaround, though usually at a higher rate. Our low doc loans page explains how these are assessed.

The most common cause of delay is out of date financials. If your last completed year is more than a few months old, have interim management accounts ready.

No, but offering property changes the deal significantly. Property backed lending gets you the lowest rates, longest terms and highest limits. Unsecured lending is faster but costs more.

Property secured

The lender's risk is covered by real estate, so pricing and terms are the most favourable available. This can be residential equity or a commercial property you already own.

Unsecured

Widely available and sometimes approved within days using business bank statement data instead of full financials. The trade offs are shorter terms, lower limits, higher rates and often weekly or fortnightly repayments.

The middle ground

Facilities can be secured by business assets, a general security agreement over the company, invoices, or a mix. Asset finance is often the better route where the funds are for equipment, because the asset itself provides the security. Directors guarantees are standard on almost all business lending regardless.

Our view is that you should not put the family home up unless the pricing benefit genuinely justifies it and the repayment plan is solid. We show you the cost difference in dollar terms so the decision is made on numbers.

Unsecured cash flow lending can be approved within twenty four to forty eight hours. Property secured commercial lending takes four to six weeks.

Fast options

Lenders that assess through bank statement data can fund within a few days. Asset finance for a straightforward asset with a well established business can settle within a week.

Slower options

Property secured commercial lending involves full financial assessment, valuation of the security property and credit approval. Complex structures or multiple securities take longer again.

What you can control

Current financials, an up to date ATO portal, clean bank conduct and a clear written explanation of what the funds are for will move an application through credit far faster than a partial submission that generates a string of follow up queries.

If you have a settlement date, contract deadline or equipment delivery to meet, tell us at the start and we will select lenders on turnaround as well as price.