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Showing 1 - 12 of 388 posts
The debt service coverage ratio (DSCR) divides the cash a business generates by the repayments it must make. Lenders size a business loan by working backwards: adjusted EBITDA, less tax and essenti...
Two official series tell you most of what is happening to business credit in Australia. The RBA's monthly Financial Aggregates show how much the total stock of lending to businesses is growing; its...
A private loan valuation is done for the lender, by a valuer on its panel, asking what the property would realistically fetch if the lender had to sell it within months. That is a narrower question...
Small-scale development finance funds projects of roughly two to ten dwellings, such as duplexes, townhouses and small unit blocks. Banks, non-banks and private lenders all lend in this space, on d...
Lenders size construction loans on the as-if-complete valuation: the valuer's estimate of what the finished property would be worth today, built to the plans and contract. The loan is usually the l...
A covenant is a promise in your facility agreement to keep certain numbers inside agreed limits and to report on time. In business loans and commercial property loans the usual financial tests are...
Private lending puts brokers across two regimes. A private loan to individuals for personal, domestic or household purposes, or for residential investment property, is regulated credit, and the Nat...
When you borrow for buying a business, the lender relies on your due diligence as much as its own. Expect to show three to five years of financial records reconciled to BAS and bank statements, a l...
A private loan term sheet sets out the commercial terms before the loan documents are drawn: amount, term, rate, default rate, fees, prepaid interest, security, personal guarantees, conditions and...
On a property-secured request, peer-to-peer lending and a private loan can look alike: non-bank money, a registered mortgage, a rate above a bank's. The difference is where the money comes from. A...
Most commercial loans run for a fixed term - often three to five years, indicatively - with annual reviews in between. At expiry the balance is due, and the lender decides whether to renew and on w...
Lenders offering development finance ask for pre-sales because each unconditional, arm's-length contract with a proper deposit is evidence that the debt will be repaid. The requirement is usually e...
