Citiwide Consultants have been involved in Commercial and Business Finance for over 18 years. We understand the pressures of running a small to medium sized business and we appreciate that you probably don’t have the time to shop around properly for the best loan options.

We also understand that a business may require various types of finance ranging from Commercial Property Loans, Business Overdrafts to Motor Vehicle and Equipment finance. Whatever your business finance needs are, we will have a solution for you.

As a commercial and business Finance Broker, Citiwide is accredited with all the major Banks and a number of specialist commercial / business lenders. Success in negotiating Commercial and Business finance is largely based on experience and this is where our strength lies.

To help you evaluate your options we provide you with some valuable information on this site. However, due to the ever changing fiscal environment and to ensure that any decision you make suits your personal situation, we highly recommend that you consult your Accountant or Tax Adviser before committing to any type of commercial finance.

To apply for Commercial / Business Finance lenders generally require you to supply 2 to 3 years records of financial information, i.e. Tax Returns, Profit & Loss Accounts and a full Statement of Assets & Liabilities for all parties involved in the transaction. If you are unable to provide that information, please click here for information on Low Doc Loans.

General overview of business loans

Fully Drawn Advances (FDA) or Business Term Loan

FDA’s or Term Loans are where the full amount borrowed is advanced to the borrower in one drawdown. These types of loans are generally over longer terms (up to 15 years) and may have Fixed or Variable rates of interest. Repayments may be "Interest Only", or "Principal and Interest".

Lenders generally lend up to 75% of the value of the Commercial security.

Business Overdraft

Overdrafts are probably still the most common type of finance used by businesses. An overdraft is a Line of Credit attached to a cheque account which allows business to operate on a day-to-day basis. The use of an overdraft is referred to as "working capital". Overdrafts are charged at a variable rate of interest, with interest being calculated daily on the balance outstanding. The balance of an account with an overdraft facility should ideally fluctuate between debit and credit as cash outflows and inflows occur.

The main features / benefits of a Business Overdraft are:

• Bridges the gap between payment of your creditors and receipt of money from your debtors
• You only pay interest the funds you use. No set repayment is required.
• You can access your funds in a number of ways including cheque, online or telephone banking

Most lenders require some form of collateral security, however there are exceptions. While business overdrafts are great for freeing up cash, they’re not necessarily recommended for long-term financing needs as the interest rates can be higher.

Business Mortgage Loan

A Business Mortgage Loan may be suitable for business people who have a residential property to offer as security for the loan. By borrowing against your residential asset, as opposed to your business asset, you will generally benefit from a lower interest rate. You can effectively operate the loan in a similar way to a Line of Credit.

Utilising a Line of Credit, means that the facility remains even when you've paid off your loan. This is ideal if you need to take advantage quickly of any other opportunities that may arise in the future.

Commercial Bill

Commercial Bills can be an excellent option when you need a significant injection of cash above $100,000. Normal terms are from 7 to 180 days and there are two types of bills - Floating Rate Bills & Fixed Rate Bills.

With Floating Rate Bills, the drawdown rate and the term to maturity of the bill are agreed at the time of the drawdown. The interest rate applicable is determined by the term of the bill. If the period is extended or rolled over, the interest rate may vary.

With Fixed Rate Bills, the drawdown rate is fixed for the term of the facility and your interest rate remains constant for the term of the facility, which may include several rollovers. With variable rate bills, the interest rate is fixed for each period.

Borrowing on a Commercial Bill facility offers the flexibility to adjust the principal amount borrowed at each rollover (or interest payment period) in line with business cash flow requirements, within a specified limit.

Low Doc / No Doc Loans

These types of loans are becoming more and more popular among self employed / business owners, because of their simplicity.

Low Doc means that you do not have to supply detailed Tax Returns and Financials. Instead you are required to sign your own declaration of income.

No Doc means that you do not have to supply detailed Tax Returns and Financials and you are not required to sign a declaration of income. In this case lending decisions are based simply on the value of the security and your credit worthiness.

If you have difficulty showing documentation to demonstrate your income, or you have limited business financials, a Low Doc or No Doc loan may be the right solution for you. Many self employed business operators have difficulty substantiating income or producing full records of their income. Interest rates vary quite considerably from lender to lender, so it pays to shop around.

With appropriate security, loans ranging from $50,000 to $2.0M are now available under this program.

Purchasing a Franchise

Obtaining a franchise in a successful franchise system is often difficult. The initial capital outlay is normally large, and to fully secure the loan you usually have to mortgage your house.

This is where Citiwide can help. We work from the basic belief that franchise businesses are different and usually inherit some strengths and capabilities from the franchisor.

The Citiwide approach offers:

• A quicker loan assessment by placing a value on the past performance of the franchise system.
• Preferred status with some of our lenders to selected franchisors to reflect the value of their franchise system.
• Ability for franchisees of preferred systems to borrow against the value of their business (including all franchise fees, training costs, stock and business assets) up to a percentage of the purchase price.
• Less focus on the franchisee’s personal assets when obtaining finance.
• Loan products tailored for franchisees.
• Market leading eCommerce services for franchise businesses.
• A full range of services which are customised and priced to reflect the value of the franchise

Whatever your need, Citiwide can tailor long and short-term solutions to suit.

For more information or any enquiries call us on 1300 732 630 or contact us using our online enquiry form