Ooo, so many questions.

First, buying a franchise is easier than starting a new business from scratch. Very few Banks will lend to a new business, while buying a franchise is easier as there are solid cashflow estimates etc available.

Second, even buying a business most Banks are going to want bricks and mortar security (either commercial or…[Read more]

Originally posted by terryw:
Its very hard to get finance for a business.

I also just do not agree with this statement at all. It is in fact not ‘very hard’ to get finance for a business, especially an established one. In fact it is sometimes ‘very hard’ to go to a residential lender and say, “I’m self employed and need to borrow money to expand…[Read more]

Originally posted by terryw:
Its very hard to get finance for a business. If you have equity, then the easiest option is to simply get a LOC for ‘future investment purposes’, then buy your business with this.

While that’s sometimes a good option, I don’t agree that it is always the ‘best’ option. Also, if you are going to leave your job to take…[Read more]

Yes, the Bank will consider the established income stream from the business you are purchasing.

They will however also look at your ability to continue operating the business. They will want to know if the vendor will be opening a new buisness in competition, and therefore be likely to shark some of your market. Also, is the business in a…[Read more]

And why shouldn’t they. You have just said to them, “I am no longer your customer”. Can you blame Banks if they tend to focus their attentions on people who ARE their customers. <— me being the devil’s advocate.

I work at a Bank and as a rule we tend to frown on that sort of thing. However, that being said if you can afford the two loans, anything is possible. Some Banks do have policy that prohibits it though.

You’re 20k is enough to pay the 5% limit extension fee on a st george no deposit loan, but you’ve got no way of meeting the other settlement costs (stamp duty etc).

So I don’t know.

Yeah, it sounds like it could be the location of the property that’s causing the problem, because BankWest, St George and Bendigo Bank (the three Bank’s I’ve worked for) would all do that as long as the other lending criteria was met.

My biggest concern for you is that you’re casually employed, and only been the 5 months. Those three Banks would…[Read more]

I can’t understand why they aren’t offering to match the IP rate you have with them. Tell them you wnt to 6.47% to apply to all your variable borrowings.

That’s a good rate.