Types of Business Loans We Offer

Line of Credit

A line of credit is a flexible financing option that allows businesses to access funds as needed, up to a predetermined limit. This type of loan is ideal for covering unexpected cash flow gaps or financing smaller capital needs. The interest rate on a line of credit is typically lower than that of an overdraft, making it a cost-effective solution for short-term financing.

Business Term Loan

A business term loan provides a lump sum of money that can be used for larger, one-time expenses. This type of loan is perfect for financing long-term strategic acquisitions, such as new equipment, real estate, or working capital. Business term loans are typically repaid over a fixed period with regular payments and are often secured by collateral.

Business Overdraft

A business overdraft allows account holders to continue withdrawing money even when their account balance is zero. This type of loan provides working capital before income is received and helps maintain cash flow stability. Interest is charged on the fluctuating daily balance, and there is no fixed repayment period, making it a flexible financing option.

Secured Business Loans

A secured loan requires collateral, such as property, machinery, or vehicles, as security for the loan. This reduces the lender’s risk, often resulting in lower interest rates and higher loan amounts. However, if you are unable to make repayments, the lender has the right to seize the collateral to recover the loan amount.

Unsecured Business Loans

An unsecured loan does not require collateral, making it a riskier option for lenders. As a result, interest rates on unsecured loans are typically higher, and the loan amounts may be lower. These loans are often based on the business’s creditworthiness and financial health.

Choosing Between Secured and Unsecured Business Finance

Understanding the difference between secured and unsecured business loans is crucial when deciding on the best financing option for your business.

Specialised Securities

Not all lenders view the value of collateral in the same way. Different lenders have varying opinions on the loan-to-value ratios of assets. If a lender deems an asset unsuitable, they may refuse it as collateral. Common specialised securities include:

• Company title property
• Multiple units on one title
• Studio apartments
• Vacant land
• Holiday rental properties (e.g., hotels, motels)
• Retirement units
• Flood-affected property

At Cresco Finance, we have established relationships with various lenders and can source the best loan offers based on your unique needs and the security you provide.

Document Requirements for Business Loans

To facilitate a smooth loan application process, certain documents are required. These may include:

• Proof of Identity – Valid identification documents, such as a driver’s license or passport.
• Proof of Income – Recent pay slips, tax returns, or other documents verifying your income.
• Bank Statements – Personal and business bank statements to provide a comprehensive view of your financial situation.
• Credit History – A credit report detailing your credit history and score.
• Business Financials – Financial statements, such as profit and loss statements, balance sheets, and cash flow statements.
• Business Plan – A detailed business plan outlining your business goals, strategies, and financial projections.

Turnaround Times for Business Loan Applications

At Cresco Finance, we prioritise efficiency. Our typical turnaround times for business loan applications are designed to provide you with a decision promptly, allowing you to move forward with your business plans without unnecessary delays.

What is Business Lending?

Business lending involves borrowing a sum of money from a lender specifically for business purposes. Interest is charged on the loan amount, and repayments are typically made over an agreed period. Business loans offer different interest rates and terms compared to personal loans, reflecting the lender’s assessment of the business’s risk and potential for success.

Personalised Consultations

We conduct one-on-one consultations to understand your business’s unique needs and financial situation.

Comprehensive Loan Comparison

We compare multiple business loan options available in the market to find the best solution for your business.

Professional Guidance

Our team provides expert advice and support throughout the loan application process, ensuring you make informed decisions.

Business Loans vs. Business Overdrafts

A business overdraft is a line of credit that allows a business to withdraw funds beyond its account balance, providing immediate cash flow. In contrast, a business loan provides a lump sum of money for specific purposes and is repaid over a fixed term. Understanding the differences between these financing options is crucial in selecting the best solution for your business needs.

Qualifying for a Business Loan

Lenders consider several factors when evaluating business loan applications, including:

• Personal Credit – Your personal credit history and score.
• Proof of Income – Verification of personal and business income.
• Business Debt Coverage – Assessment of the business’s ability to meet its debt obligations.
• Business Details – The business’s age, revenue, and industry risk.
• Guarantor Contribution – A guarantor may be required to secure the loan.