The same principles apply to this style of lending as applies to home lending. The difference between a good rate and fee as opposed to an average rate and fee in this area is knowledge. Knowledge of the banking industry in terms of knowing which banks like and are willing to lend to your industry at reasonable loan-to-value ratios. In other words, some banks like lending to hotels/motels while others do not. Some like lending to franchises, restaurants and for management rights and some do not! More importantly, from time to time some banks become over exposed to certain industries and close their books and refuse to loan to these industries…Henzells Financial Services has the knowledge and experience to evaluate!
Henzells Financial Services has the knowledge to know what information the banks need and require to evaluate your application. It is just not about supplying Tax Returns, it is about you putting forward a business case that warrants special consideration to negotiate rates and fees. For example most business people have knowledge about their business but very rarely put it on paper for lenders to take into consideration!
Have you advised your bank on any of the following,
- What your management experience is in running a business?
- What are the risk management processes in place in the event you become sick, died or had a disability?
- Is your Accountant involved in the business on an ongoing basis? How often?
- Who are your major competitors? How do you compete or monitor against their business?
- Is your income seasonal in any way and if so how do you cover these periods?
- What is the breakdown of your debtors 30/60/90 days? Comment on their ability to be collected!
These are just some of the points that Henzells Financial Services cover when submitting loan applications on your behalf.