There are different loans available: to finance property – commercial or residential, or, for buying commercial land, or plots. Whatever your purpose below is a brief description of each loan stated, giving basic helpful pointers:

• Working Capital Loans:

Working Capital Loans are required to assist in the growth of a business; this can be affected by the slow payment of debtors. These loans can be funded in numerous ways.

• Debtor of Factoring Loans:

These are secured by debtors or even outstanding trade invoices to 90% of the actual value of those invoices and funds, which are available within 24 hours. There is no longer a wait of 60 days for payment since the money you need you can get it easily, because your financing is linked to your sales and the trade invoices and not to your customer’s payment problems.

• Commercial Equipment Finance Loans:

This particular loan facility allows access to the equity in your equipment and can allow you to invest it back into your business.

• New Construction Loan:

If a licensed builder’s contract exists, council approval or permit and builders risk insurance in a company’s name, they would be treated as normal construction loan and not an owner builder (even if it’s the builders own investment property – and this includes very competitive interest rates!)

Commercial loans can be either Interest Only Loans or Principal & Interest Loans, which are secured by way of a first or second mortgage over income – producing financing commercial property, or even industrial or retail properties. They are available at competitive interest rates as well as repayment terms from lending market leaders.

Below are brief definitions of the two types of interest rates:

• Fixed Rate:

Interest rate is set from beginning of the term of the loan, the percentage given is determined by your circumstances, the amount of loan, the term and your assessed ability to repay the loan by the due date. The monthly repayment amount stays constant, regardless of changes in the bank base rate, an advantage in particular if the rate increases but it would be a disadvantage however if it drops.

• Variable Rate:

This is linked to fluctuations in the bank base rate and can easily increase or decrease, depending on what is actually happening in the open market. Therefore, you will be consistently paying the current market rate plus an agreed premium but because of any changes that can take place with the
bank base rate, your actual monthly repayments could go up or down.