Question for the brokers out there.. what are the current terms (rates LVR security etc) that are on offer for someone looking at purchasing an existing business?
I've heard they're pretty awful at the moment, but thought I should ask those in the know….
Thanks all!
Matt.
Hi Matt
All depends on what is being offered as security:
1) Residential property then the Rates are ok subject to equity position.
2) Business itself – Good luck.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard,
I'm looking for more specifics. Actual rates and LVRs etc. I know roughly how much equity I have in a residential property. If I know what % that has to make up, I can then start to look around within a set price range etc and make decisions on if it's worth it or not.That's what I thought re: the business itself. Do they count the income from the business towards serviceability etc? Business assets etc? I'm really trying to get a detailed picture of what the current conditions are, whether they're workable/realistic/restrictive etc.
Hi Matt
Realistically unless the deal is very stong most lenders wont lend anything against the business value itself.
If you buy a recognised franchise then it might be slightly different you might get 60% lvr but a small leasehold business you wont get anything like that.
Depends on the business itself as to whether potential income will be taken into consideration.
Sorry it sounds vague but that is business lending for you in the current climate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard,
It's as I thought. A complete waste of time.Appreciate your time and feedback.
Cheers
Matt.
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