Financing Your Growing Business

Business loans are designed to help you purchase an existing business, start a new venture or franchise, or make significant investments in your current operations. To qualify, you’ll need to demonstrate the feasibility and profitability of your business idea, as well as showcase your experience and ability to repay the loan within the agreed timeframe.

Most business loans come with a repayment period of 5-6 years. If you secure the loan using a residential property, that portion may have a repayment term of up to 30 years. Due to the higher risk associated with business loans compared to residential mortgages, interest rates tend to be about 3-4% higher than standard home loan rates.

Typically, banks will lend up to *50% of the business’s value or purchase price (excluding GST) when the business serves as security. If you require a larger loan, you can offer additional assets, such as your home or investment property, which can allow banks to lend up to 80% of the asset's value.

To apply for a business loan, you’ll need to provide:

- Evidence of your business’s financial performance, including a profit and loss statement and assets and liabilities statement prepared by a chartered accountant.

- A Business Sale and Purchase Agreement.

- A copy of the Lease Agreement if your business operates from commercial premises.