Business Loan – Term loan, Line of Credit
A Business Loan could give you the flexibility to improve and grow your business while relieving some of the cashflow stress. There are two types of Business loans: Term Loan and Line of Credit
Term Loan
A Term Loan is obviously for a specified amount and period of time and is suitable for most business activities including the planned growth of your business or the purchase of another, and investment.
Suitable for:
- Small, medium & large businesses wanting to retain working capital and at the same time, grow their business.
Benefits:
- Flexible repayments to suit your needs
- In most cases, your current banking arrangements can stay the same.
- Security can include real estate, debtors, stock
- Mortgage Insurance often not necessary
Features:
- $100,000 +
- Term – Up to 10 Years
- Repayments can be principal and interest or interest only.
- Interest rates can be fixed for up to 5 years.
Line of Credit
A Business Line of Credit is a more flexible option and enables you to have cleared funds transferred into your account with just a phone call.
Benefits:
- Instant draw and repayment of funds when needed.
- Interest calculated daily on used funds.
- Flexible repayments to suit your needs
- In most cases, your current banking arrangements can stay the same.
- Security can include real estate, debtors, stock
Features:
- $100,000 +
- Term up to 12 months – subject to periodic review
- Initial establishment fee and monthly line fee applicable
- Variable interest rate – margin applied above published base rates.
- Security can be property, debtors or stock.
Above loans are based on a Loan to Valuation Ratio (LVR) of 80%. If you need a higher percentage, you may be required to have mortgage insurance.
RTF Financial Services are a part of the S3F Group
