Business finance question - apologies.

[ThomasAJ]

Please don't throw this post out - I'll only do it once

I have had such incredibly good property finance advice and mortgage success (thanks Rolf) that I thought I'd try my luck regarding business finance.

Does anyone know of a high quality FORUM pertaining to business finance. Most I've seen are for one/two person businesses and posts get stuck on squabbling about $5 bank charges.

I want information about borrowing big bucks ($200k up - not secured by property) for a successful existing business to expand. There are many options I'm sure but heck it's hard to track down and get information from experienced financiers. In other words how to get the equivalent of mortgage brokers advice for business finance.

 

[bradje]

Find a good (wealthy in their own right) accountant and ask them what to do....
JB

 

[Spectre]

Pretty much anywhere you go now business lending stinks. Development finance is worse.

For the big stuff, some banks like franchises and lend set percentages against them.

IMO its doubtful you'd get 100% lend against it unsecured. You'd have to throw some skin into the game.

As far as forums go... my business clients dont have time to sit on a forum and type stuff up about varying lenders etc as usually they've got too much other stuff on the go.

 

[Bradsdad]

Quite a fewe MB's have acess to Commercial lenders also. Some even target this type of lending instead of Resi stuff. I for one don't target it but get a bit across my desk.
Unsecured business lending has always been tough but it's tightened up more over the past 1-2 years. You will most certainly need some pain money as lenders are reluctant to lend over 50-60% depending on things such as the profitability of the business, assets it may have, the purchasers experience in the industry & purchasers own financial position. You would also need to have prepared a business plan and a 12 month cash flow forecast and access to the last 2 years financials (part of your DD anyway) of the current business.

The lender will lost likely want to take a Charge of the business also which can be restrictive for any future borrowings the business may want to do.
Depending on the businesses assets (and their type) some extra funds could be raised by way of a leaseback of some assets.

Hope this helps a little.


Regards
Steve

 

[Perp]

I got a loan - such as you are seeking - from a lender who also held several of our mortgages; I assume they figured the "all monies" clause gave them adequate coverage for the business loan.

 

[ThomasAJ]

Bradsdad - can you PM me some brokers that handle this sort of stuff please.

Ozperp - which lender did you get your loan from.