Hi All, not very sure to post under which topic. Just wondering any forumites out there have any experience getting a business loan from ANZ or any finance institutions? Have look thr the Canstar Cannex website & ANZ's small business loan was the award winner2008. Seems like a security eg. house will be used for the business loan? Will this have any implication for building future investment portfolio? If any? Any sharing or advice will be greatly appreciated.
Yes, it is likely your will need to use your house as security and this will have a dramatic effect on future investing. Firstly your house will be at risk if your business fails, secondly the repayments for your loan will effect the amount of income you can buy in the future, and thirdly any equity in your house will be used up for the business loan.
Banks think business is risky, so you may have to pay a slightly higher rate than if you just got a LOC for investment purposes.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This of course would only change if the business was freehold or a franchise where the Bank may lende against the individual business security.
Otherwise they will require property assets or similar as security.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
