Declined by Banjo Loans for equipment or working capital?

If Banjo Loans declined your application, the asset itself is often the issue on equipment finance: too old, second-hand, specialised or bought at auction. HomeSec lends $20,000 to $5,000,000 secured on real estate, so the equipment does not need to qualify as security. The loan is assessed on the property's equity, the purpose and the exit.

If Banjo Loans declined your application, or it stalled while the asset was being looked at, the problem may have been the machine rather than the business. HomeSec offers Australia's fastest and most flexible business loans, with up to 6 months no payments, and because our security is property, you can buy the equipment that suits the job, not the one a financier will accept.

About Banjo Loans, briefly

Banjo Loans lends to Australian small and medium businesses, offering unsecured and secured working capital as well as equipment finance. For an established business buying mainstream equipment, asset-backed finance can be an efficient way to spread the cost.

Why equipment and working-capital applications get declined

When a loan is secured on the thing being bought, the asset has to pass its own test. The common sticking points:

• The asset is too old. Many financiers set an age limit on equipment at the end of the term, which rules out good second-hand plant.
• Bought at auction or privately. No dealer invoice, a tight settlement window and a seller who will not wait for finance paperwork.
• Specialised or hard to resell. A purpose-built machine, a modified truck body or niche plant is worth a lot to you and less to a financier.
• The business needs the working capital as well. Equipment finance pays for the machine, not the operator, the fuel or the first months before the contract pays.
• Trading history or turnover below a lender's minimum. A new contract with a new machine can arrive before the trading to support it does.

Buy the right machine, secured on property

With a HomeSec loan, the security is real estate, so the equipment does not have to qualify for anything. Old, used, specialised or bought at auction on the day, it makes no difference to how we assess the loan. Paying cash can also put you in a stronger position with a seller.

The same loan can cover the working capital to run the equipment, and interest can be prepaid or added to the loan for up to six months, so it has time to start earning before anything is due. More on buying equipment outright.

Industries where this comes up

Mining and resources contractors, civil and building businesses, and transport operators adding a truck or a trailer. See mining and resources services and builders and developers.

What to do in the next 24 hours

1. Pin down the asset and the date. Auction day, the seller's deadline or the contract start.
2. Add up the whole need. The equipment plus transport, fit-out, wages and anything else before it earns.
3. Have the property details ready: address, rough value and what is owing.
4. Know the exit. The contract's payments, a refinance once the asset is earning, or a sale.
5. Ring a Lending Manager before the auction or deadline, not after.