Declined by GetCapital when the business is growing?

If GetCapital declined you, or offered less than a growth plan needs, the amount was likely sized on past turnover, not the work ahead. HomeSec lends $20,000 to $5,000,000 secured on real estate, sized on equity, so a new contract, site or staff can be funded before the revenue arrives, with up to six months of no repayments.

If GetCapital declined your application, it stalled, or the offer only covered part of the plan, you may have run into a common mismatch: lending sized on what the business did last year, when the money is for what it is about to do. HomeSec offers Australia's fastest and most flexible business loans, with up to 6 months no payments while the growth starts paying.

About GetCapital, briefly

GetCapital is an online lender to Australian small and medium businesses, offering working capital and business loans. For a business that needs a sum in line with its current trading, that can be a straightforward option.

Why growth funding gets declined or cut back

Growth costs money before it makes money, and lenders that look backwards see the cost first. The usual reasons:

• The need is bigger than past turnover supports. A contract worth double last year's sales needs funding that last year's sales cannot justify.
• Costs are rising ahead of revenue. New staff, a fit-out or extra stock show up as outgoings months before the matching income.
• Margins dipped during the build-up. A business investing in growth often looks less profitable on paper at exactly the moment it needs funding.
• The plan relies on a customer who has not paid yet. A signed contract or purchase order is not income in an unsecured assessment.
• Other borrowing already in place. Equipment or vehicle finance taken on for the growth reduces what the next lender will add.

Funding sized on the property, not the past

We do not assess past turnover. A HomeSec loan is sized on the equity in real estate, up to 80% of a residential property's value or 70% of a commercial one, less what is owing, and assessed on the purpose and the exit. A growth plan with a clear way to repay the loan is exactly the kind of purpose we fund.

The structure helps too. With interest prepaid or added to the loan for up to six months, the new contract or site can be up and running before anything is due, and the open term means you are not refinancing under pressure if the ramp-up takes longer. More on funding an expansion, fit-out finance and franchise finance.

What to do in the next 24 hours

1. Cost the whole plan, including the months before the new revenue arrives.
2. Have the contract or plan to hand. It helps explain the purpose and the exit.
3. Gather the property details: address, rough value and what is owing.
4. Work out the exit. The contract's payments, a refinance once the growth shows in the numbers, or a sale.
5. Call a Lending Manager before committing to the contract's start date.