Business Finance

Business Finance

Robertson Wouters Finance are specialists in business finance with access to the best deals on business finance from their panel of over 25 lenders, including all the major banks.

We dedicate ourselves to finding you the best deal for business finance, and one that meets you and your business’s specific needs and circumstances.

Your Business Finance Needs

  • Purchasing / Starting up a Business
  • Purchasing / Starting up a Franchise
  • Purchasing a Commercial Property
  • Looking at Construction of Commercial Property
  • Looking at Commercial / Residential Developing
  • Purchasing a Farm
  • Looking at Expanding your Business
  • Looking at Working Capital or Cash Flow Assistance
  • Looking at Debtor Finance
  • Looking at Importing / Exporting

Whatever your business finance needs are you can be sure Robertson Wouters Finance can satisfy them. We have you covered with a wide variety of market leading products to choose from our large panel of lenders.

The Loan Process

Follow a detail description of the loan process below.

Information Collection

Once clients are ready to proceed with an application, the financier requires copies of certain information to enable an assessment of a business finance application.

Generally this information includes:

    • 100 Points of Identification – Drivers Licence and Passport / Birth

Certificate for all directors, partners, guarantors, applicants.

  • Last 2 years business taxation returns and financial statements
  • Last 2 years personal taxation returns for each

 

applicant/director/guarantor

  • Detailed business plan and cash flow statement for any start up ventures
  • Company / Business details
  • Borrowing Structure i.e. Company, Trust, Sole Proprietorship, Partnership
  • Security details for any security to be used.
  • Lease agreements
  • Loan purpose / proposal
  • Purchase contracts if applicable (i.e. purchase of commercial property)
  • Last six months loan statements for any debt being refinanced
  • Statement of all current assets and liabilities for all directors/applicants/guarantors.

Application

Once all information has been gathered and both the clients and Robertson Wouters Finance have agreed on the best product for the specific needs and circumstances of the clients, an application can be completed with the specific financier. These application forms are then signed along with the associated privacy and compliance forms.

Lodgment

Once an application form has been fully completed and signed it is lodged with all the supporting documentation to the chosen financier. This process is done either electronically or via facsimile.

Assessment

A business finance application is sent directly to a business manager who will look after the whole business connection in the future. The assessment will be performed by either the business manager or the banks credit team at their head office. Generally anything over $250,000 and under $1 million, the business manager will have the discretion to make the loan decision. Under $250,000 a credit team usually assesses the application. Over $1m the business manager writes up a Credit Memorandum with a recommendation and submits it to a higher credit team for their final sign off.

Generally speaking an assessor will:

  • Perform a credit check CRAA on all directors, applicants and guarantors for any credit history, blemishes or defaults
  • Perform company searches on all companies involved
  • Perform detailed credit analysis of the application
  • Assess the associated risk involved with the application
  • Perform a serviceability equation sensitised and averaged over a 2 or 3 year period to ensure the business can meet all its current and future commitments.
  • Ensure security for the loan is acceptable to the banks policy.
  • Price the application i.e. rates and fees, term etc.

Conditional Approval

Once the assessor is satisfied that the application meets all the policies and requirements of the financier and the borrowers have the integrity and capacity to repay the debt as and when due, they will issue a conditional approval. This conditional approval is normally subject to a valuation of the property being used as security for the loan. If the assessor is not satisfied with the application, they will defer their decision it pending additional information or decline it.

Valuation

Upon receiving a conditional approval, the bank or Robertson Wouters Finance will then order the valuation of the security property. This will be either a Kerbside Valuation where the valuer is given comprehensive details of the property and makes an estimation of the value from the street without entering the property, based on the past sales of similar properties in the area and the property details itself. A full valuation will be ordered in some cases – this is where the valuer will make an appointment to inspect the property inside and out, and then makes an estimation of the value based on the inspection and past sales of similar properties in the area.

Unconditional Approval

Once the valuer has completed a copy of the valuation report is sent to the financier, the assessor will check to ensure the property and its value are acceptable to the policy. They will also ensure that the LVR or loan to value ratio is acceptable. Generally for business finance purposes, banks will lend up to 80% against residential property, between 65-80% against commercial property, between 50-70% for rural property, and between 50-60% for specialised property and approved franchises. Unsecured is looked at in some circumstances.

Assuming the valuation and LVR is acceptable to the bank; they will issue an unconditional approval which means that the loan is fully approved and congratulations/celebrations are in order!

Documentation

Once a loan has been unconditionally approved, it is sent to documentation where letters of offer and mortgage/security documents are prepared. Letters of offer are basically the finance contracts or agreements between the financier and the borrower. Mortgage/security documents are generally mortgages of land over the property or properties being used as security and any guarantees that are necessary.

Sign up

Once documentation has been prepared it will be sent generally to borrower’s home address. Once these are received it is imperative that borrowers read through the documentation to ensure there are no mistakes and they are happy with the loan terms and conditions. Any questions can be directed to Robertson Wouters Finance. When borrowers are satisfied with the Letters of offer and mortgage documents they can sign them either in front of their Robertson Wouters Finance consultant in conjunction with their business banking manager.

Settlement

Once documentation has been signed correctly and returned to the financier, the financier will be in a position to book a settlement. There are different settlements which take place but generally we deal in purchase and refinances settlements.

Purchase settlements take place when you are purchasing a property. At settlement date, the purchaser’s bank meets with the vendor’s bank at a specified time. The purchaser’s bank hands over bank cheques in exchange for the title to the property being purchased along with a discharge of mortgage, transfer of land and other documents. In a refinance settlement there is just an exchange of a bank cheque for a title and discharge of mortgage.

This is the last phase of the loan process, everything is completed and more congratulations /celebrations are in order!

Thank you

Your finance transaction is now complete, and we wish to thank you for your business and look forward to assisting you with all of your future finance needs. We also encourage you to pass on our details to your friends and family as we would love to assist them in finding the best deals for their property, business and vehicle finance.