Prepaid Interest on Business Loans is a Game Changer
and is a unique feature of HomeSec’s short-term business finance product and has been a lifesaver for business owners for years.
This short article will be particularly helpful for brokers and business owners who may not be aware of the unique business finance solutions that HomeSec funds.
What we are specifically talking about is a unique Prepaid Interest Feature on our business loans.
What is Prepaid Interest?
Pre-paid interest means that you do not need to make any repayments or payments of any kind until the maturity of the loan.
So, if a business owner borrows funds from HomeSec today, they do not need to pay us back for up to 6 months. That means you can get access to substantial sums of money today and not have to pay a cent for up to 6 months.
Prepaid Interest is designed so that you can borrow the funds from us without increasing the strain on your cash flow. Then, when the loan matures, you can pay off the whole loan by refinancing the security property, or with an asset sale.
Businesses owners in those industries with lumpy or irregular cashflow (eg: tradies, builders, exporters, etc) may even find that their cashflow can repay the loan in one hit as well.
The hardest thing about a private 2nd mortgage loan which requires monthly payments, is that you have to make repayments on the existing first mortgage loan as well as the 2nd mortgage. This is not a good strategy for businesses that are likely having cash flow issues anyway.
So you can now see why Prepaid Interest really has been a game-changer for so many businesses which may have….
- Cashflow issues
- Irregular cashflow
- Lumpy cashflow (ie: builders and developers)
- No Cashflow (ie: new business start-ups)
- a crisis that has seen them just breaking even
Our Loans are also great for urgent funding for Property Purchases!
Get the property today and make no payments until your long term finance is in place and pays our loan out.
But Wait, there’s more!
In addition, as part of our loan advance, we can also pay the first mortgage arrears or prepay several months of your 1st mortgage. Thus, taking even more of the stress off of you, so that you can focus on your business.
It is worth noting also that at HomeSec, we do not waste your money with exorbitant upfront fees to assess your loan. We hear horror stories of other lenders charging five, ten or even twenty thousand in upfront fees!
At HomeSec we are here to help relieve your cashflow pressures, not add to them. Since 2004, we have taken great pride in having a solid reputation for being a very fair and transparent business lender.
We are all about Fairness and Flexibility
What if I have prepaid my interest for 6 months and I want to repay the loan in 2 months?
GREAT QUESTION and we have some GREAT NEWS!
If you do opt to pay us back early, then we will rebate the interest on the unused months. The interest is rebated for the number of months that you did not use on the loan term.
Most private business lenders simply do not offer these features on their loan products. Our brokers and clients have found these flexible features to be the ultimate game-changers when using short-term business finance.
Do not be put off by the belief that you cannot manage another business loan in addition to your existing commitments. Pre-paid interest really can save the day for businesses owners that need extra funds right away, but may be worried about the impact the repayments will have on their cashflow. Plus it is a lifesaver for those business owners who may not qualify with other lenders due to cashflow issues, loan arrears on other loans, or credit score issues.
So talk to HomeSec today about how we can help you with a short-term business loan, which can be funded in 24 hours.
Our PREPAID INTEREST BUSINESS LOANS Explained
Borrow from $20k to $5m in 24 hours
We don’t need financials or cashflow records
We don’t do valuations
We capitalise the interest for the loan term (ie: prepaid)
We settle on a caveat
We don’t need Deeds of Priority prior to settlement
No penalties for early repayment
Fully flexible if you need to extend the loan term (and it’s FEE FREE)
FOR BROKERS: Your brokerage paid the day of settlement
No clawbacks & No mandates required