Although finance for a business can sometimes appear very complicated, in reality it is fairly simple.
Most lenders will look at two main criteria.
1/ What’s the deal? and
2/ Who is the team?
If you can answer both of these questions strongly you are a long way to getting approved.
What’s the deal?
Looks at the security which is the value of the business and the income stream. As a guide 50% of a business may be funded. The lender will normally take security over other property as well.
Who is the team?
Industry and management experience are key when looking at financing a business. Long term experienced management is imperative in any large commercial transaction.
Covenants provide comfort to a bank, testing the cash flows on a regular basis:
- Six monthly management data for new business being acquired.
- Six monthly management data (consolidated) for the group.
- All transaction banking for group to move to the lending bank.
Want to know more? Please call us.
Non Bank Business Finance for mergers and acquisitions.
Are you looking to expand your business without traditional property security?
Are you wanting to buy out a competitor?
This non bank facility is particularly attractive for mergers and acquisitions where no property security is available.
For this facility the minimum turnover per month needs to $1m
To find out more call us.