Business Lending FAQs

Business Lending FAQs

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I am a business owner who rents my commercial premises. Should I consider buying a commercial proper

There are pros and cons to buying and leasing a commercial property for your business. Buying a property provides security and freedom and it is an asset that can grow in value and be sold down the track. However, they can be quite expensive and there also ongoing maintenance costs that you will have to consider.

On the other hand, leasing a property gives you the flexibility to relocate when needed, and it is an affordable option for businesses - not only when they are starting out, but if they want to expand and acquire another business. However, you will have a lack of control over the property and the cost of rent will generally increase each year.

Why use a finance broker for your business’s finance needs?

A finance broker has the knowledge and experience needed to help you grow your business and provide advice on the right financial solutions for your goals.

They can source and apply for commercial loans and assist with any equipment and vehicle finance needs.

Will I get a better deal if I go direct to my business’ bank?

A finance broker has the knowledge and experience needed to help you grow your business and provide advice on the right financial solutions for your goals.

By going to your business bank, you will only have access to their products. A broker has access to a panel of lenders offering hundreds of products. Better yet, your broker can help you source through the various options to find a solution that suits your unique financial situation.

What finance needs can a Viva Capital Global broker help me with?

Your  Mortgage Choice  broker can assist you with sourcing and applying for a business loan and arranging equipment finance. In addition, we are on hand to help you with all of your property needs - from commercial loans to investment and residential property loans.

What should I bring to my first meeting with a Viva Capital Global broker?

If you are seeking a business finance solution, you will need to bring:

  • Last 2-year’s tax returns for the business
  • Financial statements (Profit & Loss, cashflow statement, balance sheet, income statement)
  • Your latest management accounts statement
  • Your BAS statement
What can I expect during my first meeting with my broker?

The more the broker understands about your business and goals, the better he/she will be able to assist your needs. You can expect your broker will speak to you about:

  • What your business does
  • How it is structured
  • What your goals and targets are
  • Who are your competitors
  • Your view on threats, risks, and opportunities

Once he/she understands your business, he/she will discuss the appropriate finance options.

Can I finance plant and equipment?

Yes!

What is a commercial loan?

A loan that is secured against a commercial property.

What is debtor finance?

Debtor finance refers to products that fund a company by financing its invoices. It allows business to access funds owing in outstanding invoices before the debtor pays. Debtor finance ensures you are not forced to wait for outstanding funds that are needed in order sustain your business, such as paying wages and paying bills.

What is a business will / succession plan / buy/sell agreement?

At some point, you will have to leave your business. A business will or succession plan outlines how you will transition out of your business.

A buy/sell agreement is a legally binding contract between business partners or co-owners that describes a plan should an owner pass away, leave voluntarily, or is forced out of the business. It will set out how the transfer of ownership will occur and to whom; determine the value of the business; and how the purchase of the ownership interest being transferred will be funded.

About us

We have evolved into a fully-fledged financial services provider. Our goal is to help Australians make better decisions with their finances, because at Viva Capital Global, we understand that better choices lead to a better life.