Commercial loans from the finance companies in Melbourne are loans which are used to start or expand and develop a business or for purchasing of equipment available at competitive interest rates. Commercial loans are one of the best solutions to meet your financial needs but it’s very important to also review the impact of the loan repayments on the cash flow of the business. It is always advisable to assess the requirements, the repayment terms and compare interest rates, known as the Annual Percentage Rate or APR, of different lenders before deciding on any commercial loan.
The repayment term is generally between one to fifteen years and the interest may be fixed or variable type. The fixed interest rate is fixed at the beginning of the loan term and the interest is determined on the basis of, the amount of the loan, the term and the assessed ability to repay the loan by the due date. The monthly instalment remains constant, even if the bank base rate changes and is advantageous if the bank base rate increases but is a disadvantage if the bank base interest rate drops. In Variable Rate the interest rate is linked to changes in the bank base rate and can therefore increase or decrease depending on what is happening in the open market.
Variable interest rate is an advantage if interest rates fall but you may end up paying a lot more if rates rise. The wide range of commercial finance options includes Trade Finance and Progressive Payment Facilities, Debtor Finance Facilities, Insurance Premium Funding, Banking Relationships and commercial property finance.
Commercial property finance are required for purchasing land, acquiring an office or warehouse whether for your own occupation or for investment purposes.
The wide range of Commercial property finance options are:
• VARIABLE RATE – In this the loan interest rate increases and decreases on the basis of prevailing market interest rates.
• FIXED RATE – In this the interest rate is fixed for the entire term of the loan.
• LOW DOCUMENTATION – In this some Investors who are unable to supply required financial documents at the time of application are provided finance on the basis of a set percentage of the property’s value without verification.
• INTRODUCTORY OFFER RATE – In this case sometimes the loan is provided on a lower interest rate for the first six months to three years.
• LOAN AGAINST EQUITY – It is a very flexible type of loan which enables the use of equity held by a borrower as a security for the loan availed. It is ideal for a committed investor in the stock market.
• COMBINATION LOAN - In this the borrower can divide the loan between two different loan structures; for example, half of the loan on a fixed rate and the other half on a standard variable rate.
These commercial finance companies offer complete, diverse and flexible range of Commercial financing services and are accredited with Australia’s leading financial institutions which ensure that they are able to offer attractive finance terms, which are tailored to suit the client’s particular business finance requirements.
http://www.capitalaccess.net.au/
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