5-year fixed-rate Government funding that’s as simple as getting a credit card
Martin Cattach
Working Capital Strategist | Founder of Finance for Business | Call me when the banks say NO.
IF you apply before the 30th of June …
Applications for the SME Business Recovery Loan Scheme close on 30th June 2022.
So if you could use 5-year fixed-rate finance, plan to have your application in by June 2022.
The SME Business Recovery Loan Scheme offers low interest loans capped at 7.5% to SME businesses with a turnover of $750,000 or more AND it’s government guaranteed, so it doesn’t require real estate as security
That’s a pretty good deal...
The application process is even simpler than? a credit card application
All you need is:
Company Name and ABN
Company Address?
Bank statements (read only link to company trading account )?
Directors details?
Name and address and a photo of driver licence?
How easy is that !?!
How much can you borrow??
If you meet the turnover requirements, then you can:
Borrow from $50,000 - $500,000
Borrow up to 1.5x your monthly average turnover (the limit)
How does it work??
What you get is a revolving Line of Credit with a redraw facility that can be used to pay domestic and overseas suppliers.?
The mechanics of the process include:
?Key Qualifying Criteria
You quality if:
NOTE: If your turnover is over $500,000 then it might be worth exploring with an expert - because if you can show that your business is growing and will reach $700.000 in the next 6 months then you could possibly qualify.
What are the costs and charges?
?(Maximum loan amount is limited to $500,000)
So what you’re up for is:
Compared with a typical FinTech loan, with credit-card level interest rates that can range from 15% to 25% this is a pretty good deal.
I have clients using this facility to:
What’s the Line of Credit Repayment Process?
The repayment terms (minimum payments) for the Moneytech Facility is 33%, 33%, and 34%.?After we fund the invoice payment using the facility, the first minimum payment of 33% will be due on the 28th of the following month.?The next 33% will be due on the 28th of the next month, and the final 34% on the 28th following.?
Normally due payments will be direct-debited from a nominated bank account on the due date (28th of each month), However, EFT, BPAY and Credit Card payments prior to the due date are also available.??
?What are the terms and conditions?
Terms
There is No Minimum Term and No Lock-in Contract
?Security
???????1.? Any Ranking General Security Agreement (GSA).
???????2.? Director & Shareholder Personal Guarantees.
?What can you fund with the money?
This can be used to purchase International & Domestic suppliers for:
You can also use the funds for:
Basically, if you need to spend money to kickstart your business post-COVID then this can fund it.
What information do you need to get your application underway?
By finance industry standards, this is no more difficult than applying for a credit card.? You need some basic Company information and director details.? You also need to supply Trust details if you have an associated Trust.
Basic Company information
The basic information about your business that’s needed.
Directors details
?Basic directors details for each director of the company
Trust details
If there is a trust in place then you need to supply:
Escape the post-COVID cash trap
Don’t let your business be hamstrung by working capital limitations post-COVID.
If you qualify for the SME Business Recovery Loan Scheme then act fast (like today).
Your first step is as easy as a phone call
Don’t let the “get around to it”? gremlins (or the rush to get sales today)? rob you of this opportunity.
Phone or message me today - or book a call her
That will put an appointment in both our diaries, as well as a spanner in the works of the “get around to it” gremlins.
Call us even if you DON’T qualify
If you don’t qualify, then talk to us anyway -? because the post-COVID cash trap is getting closer.?
January, February and March 2022 could well be a “valley of death” for many COVID-reduced businesses who aren’t prepared for the full impact of the cash gap (the delay between what they’re owed and when they’ll get paid)
Link to Cash Trap Article
We’re working capital specialists and our experts specialise in finding ways for SME businesses to escape the cash trap - without mortgaging their future to exorbitant FinTech Interest rates.