Business Lending
KBRZ Business Loans assists you in getting the loan solutions you need
KBRZ Business Lending understands that SMEs must work extra hard to stay ahead in their industries. In many situations, SMEs need funds to sustain their business or achieve enormous business growth. However, without the support of track records, assets, or strong financials, it’s difficult for a small business in Australia to get funding from major banks. We want to provide a fast and flexible business loan alternative for SMEs.
With KBRZ, our clients get their funds in 3 simple steps. Our process is straightforward and comprehensive, clients are able to clearly see what step they are in and what the next one is. We want to ensure that all client needs are met timely. With KBRZ Business Loans when all required information is ready, funding can be released within 24 hours.
Increasing demand for Leading short term private lending
The short-term finance industry is growing rapidly in the market. As the demand for the industry increases, KBRZ Business Loans have become a major provider of private financial loans and short-term business loans in the Australian market.
KBRZ offers fast and compliant loan processing procedures as well as flexible lending solutions at the best rates in the market.
Brokers, accountants and financial planners rely on our private short-term financing solutions to help clients bypass cash flow problems and secure equipment replacement and financing for expansion. We have assisted many of our clients in achieving their business goals while easily avoiding financial problems.
Our professional wealth management team has outstanding data analysis and risk management skills. With advanced investment strategy and strict risk control methodology, KBRZ endeavours to provide steady and solid wealth accumulation for our valued investors
Flexible Short Term Business Loans cater Various Financing Needs
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Working capital (purchase stock, increase sales)
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Expand current business
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Business credit cards
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Equipment acquisition
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Maintenance or upgrade of existing systems or equipment
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R&D or the purchase of IP
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Acquisition of additional business
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Starting up an additional business
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Trade Finance
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Purchase of premises
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Refinancing
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Equity release, reimburse owner’s funds
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ATO liability
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Employee wages & super
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Payout business partner
Private Lending FAQ:
1. What is the difference from traditional lending?
A: Borrowing amount and LVR is based on the value of the property
2. What type of security is acceptable?
A: Residential, Commercial, industrial and Vacant land with or without DA
3. What is the requirement?
A: Secured with property, company borrower with personal guarantor
4. What is the maximum LVR?
A: Subject to security type and location can be up to 70%-75% LVR
5. What are the loan terms?
A: Can be from 3mth to 24mth
6. Can it be done if the security is in the personal name?
A: Yes
7. Can it be done if it's owned in the name of a trust or SMSF?
A: Trust is ok, but not SMSF due to the limited recourse nature
What is off market lending or contributory fund lending?
We have heard of privately brokered deals in property transactions market, whereby deals are transacted without being advertised or marketed in the usual way via public domains. This strategy is normally reserved for high ticket price properties and networking plays an important role in transacting these deals.
Speaking of lending, we’ve witnessed the essentials of “off-market lending” bringing both sides of the fence - lenders and borrowers together in a more uncommon way. And yes these are usually complex deals so we are not talking about home loans (information easily accessible via internet) or bank-type business or commercial loans. Similarly to off-market property deals, usually seen in a bigger loan size.
At perception, one might challenge that’s how commercial loans brokers do deals, matching borrowers with lenders. In fact the distinct nature of off-market lending deals is with the lender. To more accurately define off market lending deals, are lending deals that are originated by single or syndicated “off-market” lenders. At times, it can be called contributory fund lending.
01. What are “off-market” lenders?
Direct lenders and brokered lenders are the major driving force in the world of business, commercial and corporate lending. Off-market lenders are investors who want to tap into the interest-earning yield of lending to quality businesses, but not actively pursue deals in the market, in other words, not “common lender” or “usual lender” who are open for business in the lending industry. This is similar to the trust-structure on-call lending business model in the market, while distinct nature is in the investors - of whom may even be foreigners with capital sitting onshore but not being managed by private bankers or fund managers.
02. What types of deals suit off-market lending?
These type of deals are usually complex in nature, yet the size is not large enough or tenure is not sufficient to justify the eyes of corporate financing. And it most certainly suits deals that aren’t suitable for “shopping around”. And we’ve seen many many deals turned down due to having been shopped around. Not to be shopped around deals can be borrowers need to stay strictly confidential, as it might trigger other covenants if certain information became public knowledge, along the lenders market.
03. Why use “off-market” lenders?
Other than being highly confidential of the need for borrowing. Borrowers who have unusual circumstances that just don’t fit most lenders' appetite, might just suit an off-market lender. Does that make these deals higher in risks or covenant lite? Yes and no, that’s when an experienced broker comes into play, and the broker wouldn’t want to push the deal happen just for the sake of making the transaction occur because that will sabotage the relationships and there won’t be the next deal from this off-market lender if the lending turns sour due to high risk. And it’s only safe to have independent legal and professional accountants to be involved in the due diligence process.
04. Are they more expensive to tap into?
There have been deals that are cheaper due to the fact that “off-market” lenders unlike established lenders or fund managers who need to chase yield, reach a profit net of the expenses of managing a business. These investors are cost-lite and with the aim of making passive yield that beats average return products in the market.
05. What are the cons?
As previously mentioned, these deals could be a trap if not managed properly. Sometimes there is a reason why common lenders wouldn’t extend a loan to certain borrowers. Hence due diligence is critical. However there are deals that just don’t want to seek common lenders and choose to seek a more affordable cost option. As per discussed, these lenders can be a cheaper option, and without handcuffs in loan agreements or hefty exit fees.
06. What are the pros and cons for investors?
As investors into these lending deals, they can set their own rules, generate yield without management fees, and in control of exit terms. I have been an investor in multiple funds and the demand to have a concrete exit timeline is always a headache. The cons? These deals might be too off the chart and thread the risky ground of lending appetite. Investors should seek professional opinions and not rely on personal emotions in assessing these deals. That’s when a reliable act-for-your-interest broker’s advice becomes valuable.
07. What makes a quality broker?
A quality broker is one that can pull in a professional team with strong credit experience. A team that has the accounting, compliance, taxation, legal, and risk management expertise to execute due diligence on behalf of investors. A broker team that acts for your interests, and stays the course for long term sustainable business development, instead of shooting the star for a once-off bullseye deal.
Email info@kbrz.com.au to express interest to become off-market lending investor