Banks generally don’t give fixed term business loans like what you are describing for buying a business or running of a business, what banks would do is give you an overdraft facility but you would need to give balance sheets, statement of assets, everything including your cousin twice removed dogs name.
Hehe Domains, no Offense but not even close m8. Of course we give fixed business loans. Lets talk about the different options
1) Overdraft: Attempting to finance this type of deal; as an overdraft is quite definitely out of the question. Reasons? Overdrafts are meant for bridging finance and to manage cash flows. Your type of deal does not meet this together with the fact the interest rate that will be charged will be charged much higher as it is short term debt financing
2) Business loan- Business loans have a maximum of 5 years. Meaning whatever you are financing and the rate applicable to the bank will be 5 years. Normally depending on loyalty and the affordability of your business together with the applicable security Prime+2.5%
3) Franchise-Franchise application-different requirement. Main requirement 50% unencumbered cash, franchise agreement, the contract. The lease the projected financials,CV and other documents. From what I understand you do not have 50% unencumbered cash which puts us in the loan department.
Bond the property with the applicable bank, offer as security. Do a revaluation of the property and cede it over. Together with financials,up to date management accounts, projected csash flow, income and expenses of yourself and further supporting document together with a business banker who knows what he/she is doing with analysis and recommendations and debt structuring and send the application through. Provide the docs that credit may ask as further supporting documents... not to be funny but Domains had a point where we ask for literally everything... but wouldnt you as well if you were giving out your own cash to someone you barely know?
Tips: Stock,vehicles,goodwil life policies WITH NO SURRENDER val;ue, Shares with listed or unlisted companies all represent "security" that is not accepted. I could go into all the reasons but I wont. They should be to some extent self explanatory from a banks point of view. What we like? Property, with an up to date valuation and bond. Surrender val;ue policies, fixed investments ceded with the bank to the bank. What we dont like. Property bonded with other banks- if it is bonded with another bank, banks will not stand second in line to claim should there be a default hence often the requirement is the movement of the bond and the takling over of full banking as a requirement. I hope you come right and the above helped abit
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