Why People Take Out Short Term Business Loans?
We had plastering company who had secured a big job, and to secure the big job the director gave 90 day terms to the project builder.
The owner had 13 other plasterers on site working for him, and at around day 40 of 90, he ran out of money to pay wages. It was a union controlled site, so if no wages were paid, apart from having upset employees, they would be kicked off site.
Pay day was a Friday and he came to us on a Thursday. We advanced him $95000 for 2 months, and secured the debt against his house in Melbourne.
In 2 months time, he paid our Business Bridging Loan back when he got paid for the job.
We funded a doctor who needed access to $450,000 ASAP to buy new state of the art medical equipment. To wait months for the bank would cost her business dearly, as she stood to make $3000 a day once the equipment was installed.
So we advanced the funds to her within 1 business day, and the bank paid our Business Caveat Loan out when they were finally ready to fund her loan two months later.
OUTCOME: The HomeSec Business Finance short term caveat loan made her $3000 a day profit for the 2 months while she was waiting for the bank. It was a no-brainer!
Too Good To Miss
We had an electrical goods retailer who received a call from an importer who had a massive order cancelled on him. If the retailer had a spare $500,000, he could get the whole shipment at half the usual wholesale value.
This would enable the retailer to make 200% mark up or more as a result of getting their hands on this stock,
so getting a Short Term Caveat Loan for 2 months in order to get the money in 24 hours makes good
Rather than miss out on the deal, and the profits.
We have many property investors who for one reason or another have fallen behind in their repayments.
In order to refinance at a competitive rate, they need to bring their mortgage/s up to date.
With a Short Term Business Loan. As long as there is enough equity in the security properties, we are not concerned about the fact that their first mortgage is in arrears. We will pay the funds directly to the first mortgagee to bring the loan up to date. In these cases we do not advance the funds to the borrower, unless the borrower requires additional funding.
Often the client may have left things until the last minute, and situation is that critical that the first mortgagee is ready to send the sheriff around to evict.
This is where the need for fast service is paramount.
Other reasons why people may need a Short Term Business Loan, Business Bridging Loan, Caveat Loan or 2nd Mortgage Loan
They could need access to funds in 24 hours to:
1. Pay off an overlooked or overdue business tax debt.
2. Fund a shortfall on a commercial property settlement.
3. Provide urgent cash flow due to an unexpected downturn.
4. Fund an urgent advance on a pending refinance or property sale.
We’ll lend for any
worthwhile business purpose
HomeSec Business Finance will lend for any worthwhile business or commercial investment purpose, as long as there is enough equity in the security property (our max LVR is 75%) and there is an exit strategy (e.g. sale of property, refinance, payment from a trade debtor etc)
Why don’t banks or other finance companies
fund these loans?
It comes down to speed and lack of financial records
If the business borrower can wait 4 weeks, and they can show 2-3 years of tax returns and good profit results, they may get an overdraft or business loan from a bank.
However, if a business client needs cash by tomorrow, they come to HomeSec Business Finance.
Still not convinced? Ask yourself, “If I need access to a large sum of money by tomorrow, how would I get it?”
Thankfully, now you know of a reputable business finance company that can fund you, fast.
WHAT SETS HOMESEC BUSINESS FINANCE APART FROM IT’S COMPETITORS?
Our Lack Of
All lenders do charge a modest upfront fee of less than $1,000 to cover their costs of assessing new loan applications.
However some short term business lenders promise the world, then ask for thousands upon thousands of dollars up front.
Massive upfront fee’s are simply not warranted, and borrowers should be wary of such lenders.
If they approve a loan and then want thousands of dollars paid into their account up front, be very careful as many borrowers end up thousands of dollars out of pocket, and with no loan.
The Quality Of
HomeSec Business Finance issue Approval Letters on approved loans within 2 business hours.
Once that offer for finance is formally accepted by the borrowers, legal contracts are issued within 4 business hours.
We don’t do property valuations, and we don’t need Asset & Liability statements, tax returns, or financial records, etc.
Plus, the friendly staff at HomeSec keep their clients and brokers in the loop at every stage of the 24 hour process.
We email our loan contracts, rather than the 20th Century way of posting them, which could take 2 – 3 days to arrive.
In addition, we settle transfers in real time … not by cheque or internet transfer.
This means the money hits the borrowers account as cleared funds immediately.
As we hold the funds that we lend out, we don’t go off and broker the deals to investors or other lenders.