Bespoke Business – Secured Business Lending
Secured Business Lending – Stop Paying Too Much!
It is my opinion that business owners are the most overcharged and under-serviced customers in the banking system. We pay a significant premium to borrow money for our businesses, even when we provide residential security!
All because of a perceived risk, to the banks, that business owners are a more risker proposition than an employed customer. Whilst this may be true for a new or start up business, once a business owner has established themselves and their business there are very few lenders who proactively seek to reduce lending costs for those of us running our businesses.
Luckily for us, there are lenders who have recognised that business owners deserve equal treatment and are helping them save thousands in interest every year.
Some of our lending partners are able to provide standard, residential home loan rates for any business debts that are secured against residential property and this has the potential to save you a lot of money.
To give you an example, I recently helped clients restructure and refinance their existing lending facilities and save over $20,000 in interest every year. These clients had a well-established business with good revenue and profit and they were looking to access funds to inject some capital into their business. They had a small home loan and a business loan that they had used the equity in their home to set up.
Because their bank’s policy dictated that loans for business purposes must have a higher interest rate, they were paying over 8%pa, on average across their loans. Even though the bank had taken a mortgage over their residential property as security for the business loan…
We were able to help these clients refinance their existing loans with a well-known and respected lender, reduce their interest rate by 3.5% and access additional funds to invest in their business. This saved them over $20,000 in interest every year plus they were able to free up funds to grow their business and all it cost them was a $600 application fee!
These clients were no different to you and I, they worked hard and established a successful business however they sought an alternative option to for their lending. The power of choice is available to everyone and it when properly harnessed; it can become a game changer.
If you are a small business owner with a business loan then I implore you to give me a call or speak with your existing broker as you may be able to significantly improve your cash flow and potentially save thousands every year. All it takes is a simple review to discover your options and how they have the potential to improve your financial position.
Let’s start a SME revolution and demand a better service from our banks.