Looking to finance a business or require money to fund your business requirements?
We know what the banks require; after all we wrote a book on it, see publications.
Things you need to obtain and the banks will require are
- What type of business is it?
- Information as to the businesses trading history (ability to service borrowings.) Generally the last three years Profit and Loss statements (now called Statement of Financial Performance) and the latest months trading since balance date.
- Asking price (fully broken down i.e. Land and Buildings, Plant and Equipment, Fixtures and Fittings, Vehicles and Goodwill.)
- The amount you are looking to borrow.
- Cash or equity you have and security you are willing to supply.
- Skills you bring to the business i.e. your brief CV and the CV of any other directors being appointed.
- The completed business application, see Useful Forms.
Business finance is a very complicated field and a lot of mortgage brokers steer well clear of this area because it is hard work. It can also result in little reward after a lot of effort and time.
When FSP arranges finance we charge a preparation fee of $500 and a maximum fee of 1.5% of the total finance/loans drawn down (which may include residential lending as part of the lending package arranged). FSP will credit the upfront $500 and any funds received by the lender from the fee payable should the loan be drawn down. Should your actions result in the lender's commission to FSP being clawed back, FSP reserves the right to charge for its time @$200 per hour.
Other areas where FSP look to add value are;
- In the structures you use.
- Advising how taxation impacts on you, your business, any trusts or other entities you have, we can provide advice and some options before you talk to your accountant.
- Identifying the risks of being in business and what options you have to protect against the risk, i.e. Debtor insurance.
- Helping with structuring your business plan and getting SMART goals in place that are easy to action.
- Monitoring your cash flow and comparing to your forecasts.
We wrote a book on “Owning your own Business” as well, see publications
Financial Service Providers are only an email or phone call away to answer any of your questions.
For articles and forms related to business see Resources.