Loans provided to Purchase a new or established franchised
Business. Banks will lend from 50 to 75% of the purchase price
subject to different criteria and conditions.
The purpose for the limit is to provide working capital for the business or
purchase of capital equipment .
An overdraft facility is provided with your business account with an agreed
overdraft limit. Security is usually required together with a credit assessment
of the business viability.
Line Of Credit
The main advantage of a line of credit is it’s flexible – like an overdraft it can be drawn
as the need arises. It can be used to access funds for working capital requirements.
As this type of loan is usually secured against property, interest rates tend to
be lower than for overdrafts
Fully Drawn Advance
A fully drawn advance provides access to funds upfront and is used for funding long term
investments such as a new business or equipment that expands the capacity of the business.
A fully drawn advance is a term loan with a scheduled principal and interest repayments.