Hi can anyone tell me what a bank would lend against a business which has been trading for many years. Is it possible to borrow 80% against property or can you borrow against the business?
thanks
You wont be able to borrow too much against the security of the business unless it has a freehold security of some sort.
Certainly with certain lenders you can use a residential property to raise funds for business purposes.
Richard Taylor | Australia's leading private lender
You may be able to get 50% LVR against the business, it really depends on your strength as a borrower as much as the trading history of the business. One problem with this sort of lending is that the ammortisation period is generally pretty short, you may have to pay back the loan in as little as 3-5 years, so principle repayments would be significant.
Regards
Alistairyou may need to look for a commercial loan broker as normal broker's lender panel want residential property as security.
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