If you’re an Australian SME considering short-term commercial loans, you’re not alone.
In this country, lending to medium-sized businesses reached $326 billion in August 2022, a 16 per cent leap from $281 billion the same month in 2019#. Whether funds facilitate growth by securing additional equipment, software, or human resourcing, increase investments, acquire larger or new premises, or simply take care of seasonal fluctuations or payroll pressure, a short-term loan can be a huge boost for businesses.
LeadingAustralian private lending firm, Aquamore has delivered some $500M finance to SMEs nationwide. The company is known for its fast, flexible loans with highly competitive interest rates and fair conditions. The quickest applications usually involve commercial loan brokers who have conducted thorough due diligence with their business clientsbefore applying. This includes making sure that the client is across all aspects of the loan. As a private lending firm committed to transparency, we strongly advocate this approach.
So, what are some questions to ask your loan broker? Find out more about the due diligence required for business borrowing.
Short-term lending interest rates and fees
What is the interest rate, and is it fixed or variable?
This is a natural place to start, though the rate is usually only part of the consideration to realise ‘opportunity cost’ (or what the funding facilitates), particularly if it’s time-sensitive. Also be clear on whether additional fees or charges are associated with the loan, such as application costs, exit payment penalties, late payment fees, etc.
Aquamore provides a transparent summary of its fee structure so brokers, and SME clients, are fully aware of interest rates and costs before an application process begins.
Commercial business loan terms
What is the duration of the loan term, and are there options for an early repayment? Inversely, are the penalties for late payments?
Aquamore champions small Australian businesses. As such, we don’t believe in early repayment penalties – you should be rewarded, not punished!
Loan amount and eligibility
How much can you borrow, and what determines your eligibility? What collateral or guarantees do you need?
We have great news here. Unlike bank lenders, Aquamore takes an open-minded approach to finance eligibility. Whereas a poor credit rating would typically stop a traditional lender in its tracks, Aquamore is willing to examine the situation more closely and consider each application on its individual merit.
Eligibility is determined on a case-by-case basis, however, there must be property collateral presented in order for Aquamore to consider an advance (we only facilitate transactions that do not fall under the NCCP act, so there must be a commercial purpose to the transaction).
Average loan approval time
How long does the approval process typically take, and can the process be expedited for urgent needs?
Aquamore prides itself on swift approval process turnaround times. In some cases, we can process funding within days. However, many ‘moving parts’ need to come together quickly for this to happen (your broker is well placed to provide insights into the process). Brokers should liaise with us before the business applies for the loan so we can triage accordingly.
Loan repayment schedule
What are the proposed repayment terms, and how flexible are they? Can payment terms be tailored to the business cash flow?
Aquamore tailors each loan, terms, and repayment schedule based on the business’s needs and circumstances. We rely on your commercial mortgage broker to accurately communicate your situation so that we can provide the most suitable product and repayment schedule.
Use of commercial funding
Are there restrictions on how the funds can be used, and can the loan be used for specific business purposes, such as expansion or working capital?
Aquamore short-term commercial loans can be used for many business financing needs and plans.
Credit score affects
How will short-term loans affect the business credit score, and is there a minimum credit score requirement for approval?
Credit scores are impacted by several factors, including the number of enquiries (or lack thereof) on the client’s file. In contrast to other lenders, Aquamore has no minimum credit score requirements on most of its products. In addition, Aquamore will not run a credit check until a signed application form and privacy agreement are received.
Commercial loan renewal or extension options
What options are available to extend or renew the short-term loan?
Aquamore takes an open-minded approach to lending, so there are usually options to extend or renew your short-term business loans, pending the original loan’s parameters and/ or the business’s current position. Again, please liaise with your mortgage broker to communicate your needs.
Commercial loan brokerage fees
What fees are associated with the broker’s services, and are there hidden costs?
This is a question to ask your broker, and should certainly be on your list to ask!
Commercial lender reputation
What is the reputation of the lending institution, and can they provide references or testimonials from other businesses that have used their services?
Aquamore has an established reputation as a leading private lender. The company is also renowned for making commercial finance as straightforward, simple, and fast as possible. Contact your finance broker to find out more.
Regulatory compliance
How does the short-term loan comply with relevant regulations and legal requirements, and are there any potential legal implications or risks associated with the loan?
Aquamore holds an AFSL governed by ASIC (a company must demonstrate constant adherence to the terms ASIC sets out to retain the AFSL). Regarding risk, borrowing or lending money always carries risk, and all applicants must receive independent legal advice prior to Aquamore releasing any money through borrowings.
Customer support for short-term commercial loans
What level of customer support does the lender provide, and how responsive are they to queries or concerns?
Our experienced team of business development managers are available to assist your commercial broker with any questions. The team answers emails and responds to calls promptly, and is committed to delivering a seamless experience to all involved.
If Aquamore’s fast short-term loans sound right for your business, have your finance broker contact our team for more information.
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The information provided herewith does not form financial finance, nor is it intended to be a complete and exhaustive list. It is the responsibility of the business and the commercial mortgage broker acting on their behalf to ensure all information is understood.
