Business & Commercial Finance

Good business finance starts with understanding what the money needs to do.

The right finance depends on what you're funding, how and when the business will repay it, the security available and what the business needs to look like after the transaction.

Greenfield Finance helps business owners work through those questions, understand the funding options available and find a lending structure that makes sense for the business.
 

 With more than 20 years in banking and finance, including business and commercial lending, Greenfield Finance understands both sides of a lending decision.

We understand what you're trying to achieve as a business owner, but also the questions a lender is likely to ask about cash flow, financial performance, debt, security and how the finance will be repaid.

That can be particularly useful when the transaction is more complex than simply choosing a loan and comparing interest rates.

Whether you're buying premises for your own business or investing in commercial property, the lending assessment can be quite different from a residential property loan.

For an owner-occupied property, the lender may consider the financial performance of the business, cash flow, the property being purchased, available security, the industry and the amount you're contributing.

For an investment property, the lease, tenant and rental income may also be important.

We can help you understand the lending options and what lenders are likely to need before an application is made.

A profitable business can still experience cash flow pressure.

Customers may pay after wages, suppliers, tax and other expenses are due. Growth can also increase the amount of cash tied up in stock, staff or work in progress before the additional revenue arrives.

Depending on the situation, funding options may include an overdraft, line of credit, business loan, invoice finance or another working capital facility.

The right option depends on why the cash is needed, how long it is needed for and how it will be repaid.

Buying vehicles, machinery or equipment with cash can reduce the money available for the day-to-day needs of the business.

Equipment finance can spread the cost over time and match the funding more closely to the period in which the asset is being used.

We can help you understand the finance options available for vehicles, machinery and other business equipment and how the repayments and structure may affect your cash flow.

Financing the purchase of a business can be more complex than borrowing against an asset with an easily established value.

A lender may want to understand the historical performance of the business, the purchase price, how much you're contributing, your experience, the proposed ownership structure, available security and how the debt will be repaid after settlement.

The amount a lender is prepared to finance can also depend on what you're actually buying.

We can help work through the funding structure and the information lenders are likely to require before an application is made.

Growth often requires money before the additional revenue arrives.

You may need to employ staff, purchase stock, invest in equipment, open another location or fund a new contract before the business receives the benefit.

The right funding will depend on what you're investing in, when the return is expected and how the additional debt will be repaid.

Understanding that timing can help determine whether short-term working capital, equipment finance or a longer-term business loan is the more appropriate structure.

Residential or commercial property can sometimes be used as security for business borrowing.

That may provide access to different lending options or pricing, but it also means the property is supporting the business debt.

The decision should therefore consider more than the interest rate.

We look at the purpose of the borrowing, the business's ability to repay it, the security structure and whether there are other appropriate options.

One of the best times to talk about business finance is before it becomes urgent.

If you're planning to buy premises, purchase equipment, acquire another business or fund growth, understanding what lenders will want early gives you time to prepare.

That may include current financial information, your tax position, cash flow forecasts, contracts, leases or details of the proposed transaction.

Good preparation doesn't guarantee approval, but it can identify issues early and make the lending process much clearer.

 You don't need to know which lender you want or which type of facility you need before getting in touch.

Tell us what you're trying to achieve, how the business is performing and what the funding needs to do. We can work through the options and explain what lenders are likely to need.