There are many reputable credit providers/company’s providing solutions to the working capital constraints that businesses face when they are trying to grow, re-structure, re-align or refinance. They can provide almost limitless funds running into the millions, and as well, many provide term loans secured by equipment and/or property.
This might be the right structure, in the right quantity and at the right time to give your struggling business’s the decisive fire power they need to achieve their goals.
Evidenced by recent share market trends, an insight into home loan prices and the looming tightening of credit leads one to recognize the role of external factors in altering the market price post-royal commission (i.e. less credit available at a higher price).
The analysis is simple enough to help you come to understand that punishing brokers–already subject to compliance and professional standards is folly in a way some in mainstream fail to grasp.
I am aware of one company seeking to fund a mining services business with a funding requirement of $6 million, comprising $4 million in term debt and $2 million in debtor finance for a 12-month period, over which time the business would be “turned around” and the company was able to execute the initial stages of its turnaround plan, given the time and working capital, courtesy of these new funding arrangements. The financiers provided combined revolving line of credit and term loan facilities advanced against the value of the client’s debtors, plant and equipment and property and was ideal for financing growth, acquisitions and business restructuring particularly where the business sells its goods or services to other businesses on extended credit terms for businesses which can’t fund by an advance against debtors alone.
The world of finance has become more and more sophisticated with the passage if time, yet in my experience businesses are wedded to the Banks comparatively inflexible products which almost invariable involve taking mortgages over property as opposed to these more flexible financiers who tend not to seek real estate security.
Contracts with a bank have are known as “all money clauses” We tend to think that their a mortgage, only secure. the facility which is mentioned in the contract when the truth is that it secures all other monies owed by the borrower. It will for example secure an unsecured loan, a credit card, and moneys due to the bank under a vehicle leasing arrangement
I am not suggesting that Banks don’t have their place in commerce however there is some wisdom in a spread, i.e. keeping certain commercial arrangement separate from your unsecured loans credit cards. and vehicle leasing and etc with your bank, particularly as credit looks to be tightening.