Funding options
Funding options for business and commercial transactions
Fundsmart helps clients understand and structure a broad range of business, asset, commercial property and specialist funding requirements. The appropriate pathway depends on the complete transaction rather than one standard set of lending rules.
Fundsmart is a finance broker, not a lender. All finance is subject to the selected funding provider's criteria and approval.
Business funding and working capital
Business funding may be used for working capital, expansion, operating requirements, wages, supplier payments, marketing, renovations, fit outs or other genuine business expenditure. Depending on the circumstances, the structure may involve a term facility, revolving facility or another commercial finance solution.
Examples
- Managing a temporary cashflow gap.
- Funding business growth.
- Meeting seasonal demand.
- Paying suppliers.
- Supporting a new contract.
- Investing in business operations.
Equipment and commercial vehicle finance
Fundsmart can review funding requirements for assets used in a business. The asset being purchased may form part of the proposed security structure.
Examples
- Machinery.
- Trucks.
- Utes used for business.
- Construction equipment.
- Technology.
- Hospitality equipment.
- Medical or professional equipment.
- Tools.
- Business fit outs.
Business purchase and acquisition finance
Buying a business often requires consideration of the purchaser's experience, the financial performance of the business, available equity, the proposed ownership structure and any available security.
Examples
- Buying an existing business.
- Purchasing a franchise.
- Acquiring a competitor.
- Purchasing business assets.
- Purchasing company shares.
- Management buyouts.
Commercial property finance
Fundsmart can review commercial property transactions involving owner occupied premises, investment property, refinancing or the release of equity for an eligible business purpose.
Examples
- Industrial property.
- Retail premises.
- Offices.
- Warehouses.
- Mixed use commercial property.
- Owner occupied business premises.
- Commercial investment property.
Property development finance
Development finance requires a review of the complete project, including the property, consent position, costs, borrower equity, experience, presales where applicable and the proposed exit strategy.
Examples
- Land acquisition.
- Subdivisions.
- Townhouse developments.
- Apartment developments.
- Commercial developments.
- Construction funding.
- Cost overruns.
- Completing partially developed projects.
- Residual stock.
Bridging and short term business finance
Short term finance may be considered for time sensitive business or commercial property transactions where there is a clear purpose and a credible repayment or exit strategy.
Examples
- Settlement gaps.
- Time sensitive property purchases.
- Expiring private finance.
- Short term property backed business funding.
- Completing a transaction before longer term finance is available.
- Residual development stock.
Stock, import and trade finance
The appropriate structure for stock and trade funding depends on the supplier arrangement, business cycle, customer payments, security and length of the funding requirement.
Examples
- Importing stock.
- Supplier deposits.
- Wholesale purchases.
- Seasonal inventory.
- Export transactions.
- Trade cycle funding.
Invoice and contract finance
Businesses may require funding between commencing work, paying staff and suppliers, issuing invoices and receiving customer payments.
Examples
- Funding unpaid invoices.
- Commencing a confirmed contract.
- Paying wages and suppliers.
- Supporting rapid business growth.
- Managing long customer payment terms.
Business and IRD debt refinancing
Fundsmart can review the structure of existing business borrowing and other commercial obligations. Any potential solution will depend on repayment capacity, security and the overall position of the business.
Examples
- IRD arrears.
- Multiple business loans.
- High commercial finance repayments.
- Private or solicitor lending.
- Expiring facilities.
- Consolidating business debt.
Specialist business and commercial transactions
Some viable transactions do not fit standard bank criteria. Fundsmart can review the complete position and determine whether it is appropriate to approach a specialist provider.
Circumstances may include
- Previous credit issues.
- Bank declines.
- Tax debt.
- Irregular business income.
- Short trading history.
- Urgent settlement requirements.
- Non standard property or security.
The presence of security or a business purpose does not guarantee that funding will be available. Repayment capacity, transaction quality, security and the exit strategy remain important.
Not sure which category applies?
You do not need to choose the finance product yourself. Tell Fundsmart what the business is trying to achieve and we will contact you to discuss the requirement.