UNSECURED LENDING

In contrast to secured loans, an unsecured loan relies on the personal promise, or covenant, of the borrower to repay. Unsecured loans are, therefore, generally higher risk than secured lending, with the consequence that they are subject to higher rates of interest and are normally available only for much shorter terms. For example, while a mortgage secured on a property will be available for 25 years or even longer, a unsecured loan is rarely offered over much more than six or seven years

CASE STUDIES

Unsecured Line of Credit for business expansion.

  • Business details

A well-established business formed ten years ago. The company supplied hardware for installing telecommunications into buildings across Australia.

  • What did the client want? 

The clients were seeking finance to purchase quantities of discounted stock. The business needed 1m line of credit (LOC) secured against their assets.

  • Difficulties along the way 

we approached their existing lender however they declined due to standard lending policies for businesses. We needed a lender with a flexible approach.

  • What did we do? 

We work with lenders that specialize in funding suitable businesses for growth – and after discussing details about the client and their needs, we negotiated terms.

  • Key points

In contrast to secured loans, an unsecured loan relies on Directors Guarantee, or covenant over the business assets, Unsecured loans are, therefore, higher risk than secured lending, with the consequence that they are subject to higher rates of interest.

  • The end results 

Funding went ahead for our happy client. Within weeks from making the application they received funding.

  • Business: $1m
  • Rate: 8%
  • Term Line of Credit

LET US HELP YOU FIND

THE SUITABLE SERVICE

We offer an end to end financial solution with a focus on making the
process as simple and stress-free as possible.

LET US HELP YOU FIND

THE SUITABLE SERVICE

We offer an end to end financial solution with a focus on making the
process as simple and stress-free as possible.