Bridging finance
A bridging loan is when you require finance to purchase a second property with the intention of selling the existing one. A bridging loan is typically an interest only payment home loan with a limited loan term.
It is an additional home loan that you take out on top of your current home loan on your current home until you sell your current home and close your current loan. This means during the bridging period; you have both loans and both loans are being charged interest.
Some loan structures only require you to make repayments on your original loan until settlement. During the bridging period, the interest on the bridging loan gets added to your ongoing balance on your bridging loan but you do not have to make repayments on it until your existing property is sold. Other loan structures require you make payments on both loans from the time you open the new loan.
Because a bridging loan means you are having to carry two mortgages at once, a bridging loan is not for everyone. You would not want to overestimate the sale price of your current home and find that your bridging loan for your new home is actually not affordable.
Then when your current home is sold, the bridging loan is converted into a normal principal & interest repayment home loan for your new home, and you start making repayments on the new home loan.
Franchise Finance
Obtaining a franchise in a successful franchise system is often difficult. The initial capital outlay is normally large, and to fully secure the loan you usually must mortgage your house.
What is Franchise
Franchise is a contractual relationship in which the franchisor (the owner of a product or service) provides a licensed privilege to the franchisee (dealers) to do business and offers assistance in organising, training, merchandising, marketing, and managing in return for a consideration often known as a franchise fee.
Franchise Finance
Obtaining finance for buying a franchise may be difficult as many lenders hesitate to fund new franchises. At First Grade Financial Solutions our consultants are experienced in securing franchise funding. We have strong business relationships with several financial institutions and banks that can help make your investment happen.
Our consultants understand what lenders are looking for, they know how to present your loan application in order to maximise your chances of getting approval.
First Grade Financial Solutions can assist in obtaining finance for a new or existing business franchise in the following areas:
Franchise Acquisition Finance
If you are looking into a new or existing business franchise opportunity, First Grade Financial Solutions has strong relationships with several lenders that offer tailor made franchise financing packages for accredited franchise systems.
In many instances we can obtain unsecured business loans for up to 70% of the purchase price, depending on the quality of the franchise system.
Generally, the term of the unsecured business loan is limited to the length of the lease (if applicable) which can be up to fifteen years. Depending on the strength of the application, the right financial institution and the right business franchise system, interest only business loans are also available.
This is where First Grade Financial Solutions can help. We work from the basic belief that franchise businesses are different and usually inherit some strengths and capabilities from the franchisor.
Debtor finance
Debtor finance turns unpaid invoices into quick, efficient cash flow for growth and other business purposes. What is great about it is that property security is not usually required. Access to funding is scalable, growing as sales grow.
If your business sells to other businesses on credit terms, First Grade Financial Solutions are here to help you!
Businesses best suited
Debtor finance is best suited to businesses in the following industries:
- Manufacturing
- Wholesale trade
- Recruitment and labour hire
- Transport and storage
Benefits
- Flexible line of credit which grows as your sales grow
- Receive cash flow using the strength of your account’s receivables
- The product is tailored to your overall situation and business needs
- Convenient and flexible cash access as required (eg for seasonal fluctuations)
- Improved cash flow for your business can lead to supplier discounts as you are now able to make early payments
- 24-hour online access to view and request funds
Indicator rate
The Indicator Rate, currently 5.5%, is a guideline to help you assess if debtor finance is the right solution for your business. The rate is not finalised until an offer has been provided, with a confirmed rate formulating part of that offer.
Trade Finance
Trade Finance gives businesses that import products from overseas the ability to pay international suppliers upfront without having to spend their own working capital.
This gives business some financial ‘breathing room’, to import products from overseas, then have more cash to improve, mark-up and sell those products in Australia.
Cash Flow LoansFor Small Businesses
Is your business running low on cash for daily expenses? Cash flow loans for small businesses are designed to get you the funding you need without delay.
In some situations, time is the main concern. Partnering with FinTech lenders, we can arrange to have the funds paid to you within 24 hours of your application being approved.
Whether you are a small business owner or you are running a medium size company, when you need an injection of working capital, we can arrange.
Cash flow products and services are intended for all types of business use, noting that they do not have strict rules on how you use your loan like many other loans do and can involve solely soft costs such as marketing Campaigns or Computer Software.
Here are some of the most common uses that many of our customers use their cash flow loans or line of credit on.
Buying stock
If you run a business that deals in stock and inventory, cash flow is crucial.
Paying for unforeseen circumstances
Whether you need repairs to your commercial property, business vehicles or vital operational assets, you will need funding as soon as possible to get things back to working order.
To increase staff or business space
Looking to expand but do not have the capital? A Small Business Loan or Line Of Credit can help you recruit the workforce and work place you need to get things moving .
Paying for marketing projects
No small business can grow without an effective marketing strategy in place.
To maximise business opportunities
Come across a chance that cannot wait?
Features and Benefits of Cash Flow lending
Flexible terms
Loan terms from 3 – 36 months, with the flexible repayments tailored to your cashflow and flexible early payout options available.
We will always provide offers that fit in comfortably with your circumstances.
No hidden fees
You will receive a full and simple breakdown of all costs, terms, and conditions of your loan. There is no application fee, and you are under no obligation to take the loan.
No need for security or assets
Under $100,000 there is no upfront security required.
Small businesses are the life blood of the economy and for this reason we want to help businesses like yours.
Get in touch with our team today and we will be glad to answer any other questions you might have.