There are different types of business loans to suit different stages of a business lifecycle and different business needs and selecting the right one can speed up the application process and minimise costs.
 
Finance for a start-up
For a start-up company with no trading business or cash flow, it can be quite difficult to secure a business loan. An alternative is to take out a loan using the equity of your home or property.
 
“A lot of the banks don’t have much of an appetite for start-ups, so a home loan would be a good alternative for anyone wanting to fund a new venture,” says Mark Grange Liberty Financial Adviser – Brilliant Home Loans. “It provides flexibility and you could be more likely to secure approval, it is important that you consider how your future income will be impacted and disclose this to the lender.”
 
If your start-up is part of a franchise some lenders may have already completed assessment on the business and have criteria and policy in place that they will lend around.  
 
Fintechs
This is a relatively new term combining FINance & TECHnology to assess your suitability for a loan without the need to supply financials, tax returns etc. The process is a lot faster than applying for a loan with a bank and can typically be funded within 24-48 hours and can have loan amounts up to $250K with repayment terms up to 2 years  
 
 
Finance for quick cash flow
Similar to a line of credit, a business overdraft can be drawn down to a certain limit, it is specifically a commercial loan that is priced accordingly - and more favourably for the business. A great option for those unspecified cash flow requirements that go with owning a business, it provides the flexibility of accessing funds based on the previous trading history.
 
“There are a lot of unknowns that arise in business that even the best business plans can’t cater for,” says the Adviser. “This type of financing takes care of those unforeseen things.”
 
Finance for expansion, buy out of a partner or investment
Aimed at funding long-term investments, term loans are ideal for business expansion. They’re fully drawn advances for a fixed length of time with scheduled repayments. Normally secured against an asset, term loans are commonly used for purchasing new equipment or moving to larger premises.
 
There is also the option of lease finance for those who require equipment upgrade but don’t particularly want to own it. “Lease finance is typically used for office equipment, photocopiers and such that you don’t need to ultimately own because it gets superseded,” advises the Adviser. “Anything that requires a continued trade up to a new model.”
 
Regardless of what kind of business you are financing, it’s always important to have a good business plan. “Try to have an accurate cash flow forecast and implement a good exit strategy,” the Adviser says. “Lenders want to see what you would have in place if things don’t go to plan; that’s how they make their decisions.”
 
MFAA accredited brokers like Mark Grange can assist with business planning and finding the right type of finance to support growth and success. For all of your commercial finance questions contact Mark Grange Liberty Financial Adviser – Brilliant Home Loans Today
www.brillianthomeloans.com.au

Is a family guarantee right for you?
Entering the property market is no easy feat for a first homebuyer, but even parents who aren’t prepared to hand over cash for a deposit may help by being a guarantor on a loan. Before taking the plunge however, it’s crucial to be aware of the implications involved. Here are three questions to ask yourself to see if a family guarantee is right for you:
 
1. Am I financially fit to be a guarantor?
The very first thing you should be certain of is whether or not you are in a financially capable position to pay off the loan if the borrower finds that they can no longer do so. There can be many disruptions to an income, such as loss of employment or a serious accident, and some types of guarantor loans hold the guarantor legally accountable to ensure the mortgage is paid off. You must also consider if you would be prepared to sell the property to repay the loan.
 
 
“You need to be in a strong financial position and have enough equity in your property to be a guarantor,” says Mark Grange Liberty Financial Adviser – Brilliant Home Loans. “Some banks even want to make sure that the guarantor can service the full debt as well, so it’s always advisable to get independent legal or financial advice if you’re considering it.”
 
2. Do the benefits outweigh the risks?
It’s no secret that it can take a long time to save for a deposit and by becoming a guarantor, you offer the borrower the chance to enter the property market sooner.
 
“Lenders may treat the loan like an 80 per cent lend, so you avoid the costly lender’s mortgage insurance (LMI),” say the adviser. “You also don’t have to save up for a full deposit for the purchase, or sometimes any deposit at all.”
 
However, any time you borrow money or a bank places a mortgage over your property, there are definitely things that need to be taken into account, the adviser explains. “While in some instances I would recommend it, it’s definitely not a first option as there are certain factors that can put you or your property at risk. Your ability to borrow will also be reduced after using a guarantor.”
 
3. Are there other ways I can help without being a guarantor?
If contributing to a deposit is an option, it allows you a little help without needing to put yourself or your property at risk, but there are some extra hoops to jump through if a deposit includes gifted funds.
 
“With gifted funds, if [the deposit is] less than 20 per cent of the property’s purchase price, then the banks will most likely want to see five per cent of genuine savings,” the adviser explains. “Having said that, there are a few lenders that will allow you to use rent as genuine savings. So, if you’ve been renting for a while, it shows that you have the propensity to make repayments and then the reduced (less than 20 per cent) deposit may be used in that regard.”
 
MFAA accredited finance brokers like Mark Grange can provide access to tailored loan products and expert knowledge and meet the highest educational and ethical standards. Contact Mark Grange Liberty Financial Adviser – Brilliant Home Loans today.
www.brillianthomeloans.com.au

Asking how long it takes to get a loan approved is like asking how long a piece of string is. Every application is unique, so the time between your first contact with your bank or broker and approval can never be predetermined. There are, however, some things you can do to help move your application along.
 
Although very rare, same-day loan approvals are possible depending on the lender’s criteria, the complexity of the deal and turnaround time. “In my experience, this has been possible when the client’s lending position is fairly straight forward in terms of employment, asset and liability position,” says Mark Grange Liberty Financial Adviser at Brilliant Home Loans. “Also, if a valuation wasn’t required due to a low LVR and both parties were happy with the contract price.”
 
If you’re not prepared, it could take up to a month. The most common reason for a delay is a lender’s turnaround time to assessment, especially when some lenders have competitive offerings and experience larger application volumes, but a lack of preparation can cause this delay to snowball. “When there are such delays and then a lender must arrange a valuation or request further information, this can lead to a lengthy process time,” the broker says.
 
A good finance broker will help you take all the necessary steps to ensure fast home loan approval, but there are simple ways you can help hurry the process along before your first meeting with your broker.
 
Disclose all information
To avoid back and forth requests, which can delay your application, ensure your lender has a thorough understanding of you as an applicant including appropriate identification of all borrowers. Provide all the supporting and necessary documents upfront to your broker, and convey as much detail as possible in relation to your requirements and objectives and have good, current information on your financial position. The broker will need to not only have your full financial details but will also need to take reasonable steps to verify it.
 
Skip the valuation queue
Not all applications require a valuation, depending on the property and lending institution, and forgoing this step can save a considerable amount of time. You can also save time by having a valuation completed prior to your application, as long as it’s accepted by your chosen lender – but check with your broker first.
 
 
To ensure your application avoids any unnecessary delays, speak to  Mark Grange Liberty Financial Adviser MFAA accredited finance broker.
www.brillianthomeloans.com.au

 
Some of the most important decisions a business owner will make are about their premises: whether to rent or buy, where to base the business and even the style of the property are important to get right. For those with an SMSF, there is one more option to consider: landing business premises and an investment property at the same time.
 
Figuring out whether buying your commercial premises through your self-managed super fund (SMSF) is an option that’s suitable for you is imperative to the success of your investment.
 
There can be many gains through purchasing commercial property through your SMSF, including creating a certain level of freedom by smart use of resources.
 
“It frees up capital for the business owner. They are unlocking super to do more for them,” explains Mark Grange Liberty Financial Adviser SMSF specialist.
 
Then there are the tax benefits that may be available which your accountant/financial adviser can outline.
 
On the flip side of the shiny self-management coin, the SMSF specialist offers a word of warning regarding obligation. “There is an absolute element of responsibility on compliance matters. You are the trustee of an SMSF and you need to understand what those responsibilities entail,” the SMSF specialist warns.
 
You must pay commercial rates for rent through a prearranged lease agreement and, although having a protected asset is great for some businesses, it also means that equity is locked within the fund. You can’t take earnings elsewhere.
 
If you would like to find out more about purchasing a commercial or residential property in you Super fund contact Mark Grange – Liberty Financial Adviser

There are options
Self-employed borrowers often come up against the challenge of not being able to present a raft of financials and tax returns to back up their loan applications. But this need not stop you refinancing or buying your dream home.
 
This means that, rather than the usual documentation, you prove your ability to service a loan using BAS, business bank statements, declarations from your accountant or a combination.
 
Of course, as with any mortgage application, you must still prove that your income outstrips your spending and you can service the loan. Getting this right is more than presenting a lender with a few quick sums on the back of a coaster; but with a little help from your broker it is possible.
 
Reduce debt: having credit cards with high reduces your borrowing capacity as do personal and vehicle loans. limits (Lenders use limit not current balances when assessing)
 
Low-doc loans do differ from standard loans in a few ways, apart from the application process. The Loan amount to Value of the property (LVR) is lower at less than 85%
 
In cases where the loan amount is for more than 60 per cent of the property’s value, some lenders also require self-employed borrowers to pay for lenders’ mortgage insurance, which protects the lender not you.
 
Lender policies around Low-Doc change regularly so if you would like to find out more contact Mark Grange – Liberty Financial Adviser

Rentvesting – how to enter the property market without sacrificing your current lifestyle
 
As property prices continue to rise, purchasing in a centrally-located or sought-after area is out of reach for the average working millennial. Instead, many are opting to rent rather than buy as it means not having to compromise their inner city or beachside lifestyle. But for those who are still eager to enter the market, there is a way to get the best of both worlds.
 
‘Rentvesting’ is the term coined for when you purchase a property for investment purposes in an affordable location and continue to live and rent in the area of your choice.
 
“Millennials aren’t interested in purchasing a property in the outer suburbs and then having to commute into the CBD,” says Mark Grange - Liberty Financial Adviser. “Rentvesting allows you to enter the property market at a more affordable cost with the view to buying your owner occupied in an area you prefer to live once you have built up enough equity.”
 
Where to buy depends on your circumstances, if you don’t have much spare at the end of each month you look for properties with high yield e.g. high rent compared to the value of the property. If you are prepared to chip in a few $$ each month you may look to properties with a potential for higher capital growth e.g. in highly sought after area with increasing property prices above the market. Or you can settle some where in the middle.
 
 “It’s all about living within your means. Don’t overstretch at the start while you’re building it up”.
 
To ensure you have the means to make ‘Rentvesting’ work for you, contact Mark Grange Liberty Adviser for advice on good debt and other strategies that will allow you to maintain your current lifestyle.