Danber Financial Services can assist Business Client with their commercial Financing needs for the following facilities detailed below.
Commonly used to purchase property, both commercial and residential, or a business including a franchise. The loan terms / type will depend on the Loan to Value Ratio and the nature of the asset being purchased. Repayment options similar to residential loans, but terms are usually shorter and may be restricted to 5, 10, or 15 years and will vary in the amount range, loan term, interest rate, interest rate type (i.e. fixed or variable), fees and security.
A revolving line of credit with an authorised limit attached to a business’s operating account. Mortgage security is usually required. Mostly used to provide working capital to cover the operating cash flow cycle of the business. Not intended for large capital purchases or long-term financing needs and interest rate is set at a slightly higher rate than normal commercial loans.
Line of Credit
A line of credit or equity loan draws on an account balance up to an approved limit. Usually secured by a registered mortgage over a property. Interest only payments. Fees & interest raised monthly (like overdraft). Commonly used to fund medium term working capital requirements.
Used for international import/export of goods and services. Provides the seller with surety of payment and the purchaser with guaranteed supply. Secured by the stock itself and contract documentation (letters of credit, factoring, export credit, insurance and EFIC guarantee).
Asset & Equipment Finance
A chattel mortgage or finance lease is a loan that uses the good purchased as security. Used to finance new and used motor vehicles, plant and equipment, green/energy assets and tertiary assets. Typically secured only by the asset financed but a Director’s Guarantee may be sought. Loan term should not exceed the usable lifespan of the asset being purchased.
Invoice (Debtor) Finance
A line of credit linked to and secured by outstanding accounts receivable (debtors). Used as a form of short term cash flow funding if your business supplies products or services to other businesses on trade credit terms.
Insurance Premium Funding (IPF)
IPF is a short-term loan (no greater than the expiry of the insurance policy) to pay an insurance premium, with convenient and flexible alternative to paying large insurance premiums upfront. Multiple business insurance premiums with the same insurer can be financed under one contract. (e.g. Workers Comp, General Business Insurance, Professional Indemnity, etc.).
Unsecured Business Loans
No security loan available to some businesses although larger loans may require Directors’ Guarantees. Short term in nature – usually no more than 12 months and borrowers must ensure that the facility is ‘fit for purpose’.