FAQs

Secured funding has the asset being purchased as the collateral against the credit extended. Funding without security is not secured by the goods being acquired. Other collateral may be required by some applicants.

The purposes for funding with security include non-tangible purchases such as services, fees, training programs, some supplies and materials, development expenses and similar expenditures.

An ABN is essential for all forms of commercial credit. Lenders will assess cash flow, turnover and the financials of the operation when approving applications.

Rates are higher on credit facilities which are not secured by the assets being funded.

Yes. Staff training programs would be considered a typical purpose for applying for credit without security.

Operators may consider overdrafts, lines of credit or credit which is secured by other assets or property owned by the enterprise.

Some lenders may request that some enterprises provide collateral. This may be assets or property owned by the enterprise or the owner of the enterprise.

Some banks only approve up to 3 years but other non-bank lenders can approve longer terms.

Yes. All types of commercial entities are eligible to apply for all forms of commercial credit.

An overdraft may be suited for shorter term support while a credit arrangement over a fixed term may suit a longer term purpose.

An online credit calculator can be used to get estimates on all types of commercial funding.

If the interest rate is at a fixed rate it will not change over the term. If it is at a variable rate, it may change in line with lender rate changes.

Banks and lenders have individual criteria for the amount of credit they will approve for their portfolio of facilities.

A personal guarantee may be considered as suitable collateral and may be requested in some cases. Subject to individual lender guidelines.

Interest on commercial credit is usually deductible. Whether or not repayments are deductible will depend on what the credit is utilised for.