Business Finance

Applying for a business loan can be intimidating to borrowers new to the process; however, the loan application process is fairly straightforward.  Although the specific steps can vary from lender to lender and business to business, most business and commercial financing will follow a similar process

Step One: Having a one-on-one discussion.

We help borrowers to quickly identify eligibility for the types of business loans, leases or line of credit products available to suit the unique needs of your business.  We recommend a specific lender based on your funding scenario and help you estimate how long it will take to obtain funding, an important requirement, especially if time is critical.

Step Two: Apply for the loan or lease.

We assist you with the loan or lease application and verification documentation including compiling a business profile.  In general, the business profile should include: the type of business, the company’s annual sales, the total number of employees, a profit and loss statement, information regarding the length of time the company has been in business and details about recent ownership history.  A lender will usually want to see a business plan, particularly for a start-up company.  Lenders would also require personal financial statements and available business financial statements.  If the loan is secured, you will also need to provide information about the collateral being offered.  Collateral can include personal real estate, property, business equipment, accounts receivable, inventory and supplies, or business real estate.  We have access to a number of potential financiers.

Step Three: Wait for the lender to assess documentation. The lender will then verify the authenticity of documents and review your credit file, credit rating and background as well as the financial history of the business.  We update you every step of the way.

Step Four: Receive loan approval or otherwise. After assessing the application, if approved, you and lender will sign all necessary paperwork, then the funds are disbursed or the loan settles (if for a property purchase).

How long does it take to get business loan or lease approval? The length of time to approve a business loan varies depending on the chosen lender and the business’ unique circumstances.  Approval can be completed within a matter of days or can take several months usually depending on the complexity of the transaction.  Based on the information compiled and our knowledge of the lenders’ requirements, we estimate the length of time to get loan approval at the outset of the application process.

What types of business loan and lease financing are available? The majority of funding these days is secured.  Although specific financing offers will vary, most lenders offer a variety of financing options for business owners.  Below are a few of the most common financing options:

  1. start up financing;
  2. business growth financing;
  3. debtor / inventory financing;
  4. motor vehicle financing;
  5. equipment and plant/tools financing;
  6. business property financing; and
  7. Trade financing.

How much can my business borrow? Borrowers with a good credit rating, offering good security and supporting their application with good background and financial history or projections will have a good chance of success with their application.

How long will I have to repay? Generally, business loans are set for a term of one to fifteen years, however, this can vary from lender to lender.  The amount of money being borrowed will also affect the term of the loan.  A business loan with residential property security can have a term as long as thirty years with some lenders.  A loan can also be structured on an interest only basis but be cautious as the principal will still be owed at the maturity of the loan.