Looking for a significant infusion of capital for your business?
A secured loan is a type of financing where the borrower pledges collateral to the lender. It can be in the form of a home, a car, or any other asset that holds value. Secured loans are a great option for people who need a large sum of money and want to pay it back over time.
It offers higher loan amounts as the lender has the security of collateral to fall back on in case the business is unable to make loan repayments. More importantly, business owners can afford major business expenses from new equipment to business expansion or acquisition.
Minimum eligibility criteria
At Funding Link, we have simplified and streamlined the application process so that any business owner can be eligible for secured loans:
✔️ Active Australian Business Number (ABN)
✔️ 12 months minimum trading time
✔️ Collateral with significant value that would cover loan amount
✔️ Bank statements for the business
✔️ Balance sheet and profit-loss statements
✔️ Personal and business tax returns
✔️ Good credit score
Where to use it?
There are a few common reasons why businesses might apply for a secured loan:
1. Equipment Purchases: Finance the purchase of equipment for your business - new machinery, vehicle, or other types of equipment
2. Working Capital: Provide your business with working capital or cash injection to cover expenses during downtime or to take advantage of growth opportunities.
3. Real Estate: Provide the necessary funds to purchase a new commercial property or expand your existing one. By using the property as collateral, you may be able to access lower interest rates and longer repayment terms.
4. Business Acquisition: Provide funding to acquire a new business.
Getting a secured business loan helps the business access a greater amount of funding as compared to other types of loans. Although it has a lengthy approval process that would put the risk of losing valuable collateral, there are benefits that business owners should consider:
1. Lower Interest Rates: Since lenders can fall back on the collateral, borrowers will get lower interest rates.
2. Higher Loan Amounts: The collateral will assure that lenders would be more willing to provide a higher amount of money to loan from $500,000 and above.
3. Longer Repayment Terms: Borrowers would be able to spread out their loan repayments over a longer period from 12 to 36 months.
4. Fixed Interest Rates: Interest is fixed so you will know your repayments throughout the loan's lifetime.
If you need a large sum of money and have collateral to pledge, a secured loan could be the perfect option for you. Contact us today to discuss your secured loan options and get started on your loan application.
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