HomeSec Vs The Banks

?Did you know that there is a significant difference between going to the banks for a business loan and a private lender like HomeSec? When it comes to speed, flexibility and approval requirements the differences might actually shock you. So, today we wanted to break down for you how HomeSec and the banks perform in all of these categories.

1.???? Loan Approval Speed

HomeSec: We can provide funds within 24 hours of applying for a loan. This makes us ideal for urgent cash flow requirements or time sensitive business opportunities.

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The Banks: Most common practice is for them to take weeks and even months to process business loans. This is just them deciding whether they will approve the loan or not. They are known for their lengthy approval process due to external valuations holding up the process and compliance checks.

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2.???? Eligibility Requirements

HomeSec: We have always prided ourselves on our flexible approval process. We focus on the value of the real estate rather than credit history, income verification or excessively detailed financials. We will also have a conversation with the client, if they fall outside of the LVR, because we know that there can be other factors that are worth considering too.

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The Banks: Require extensive documentation that is usually nearly impossible for businesses to obtain and can takes weeks for them to do so. This includes proof of income, credit checks and comprehensive financial statements.

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3.???? Purpose of Funds

HomeSec: Provides short-term business loans without strict restrictions on how the funds are used, as long as it is for a business purpose.

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The Banks: Often impose limitations on what a loan can be used for. They often require specific justifications for the loan’s purpose which can also delay the loan’s approval.

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4.???? Loan Structure

HomeSec: Offers interest-only short-term business loans that are designed to assist immediate financial needs without the burden of a long-term commitment. Plus, it can really help your client get on top of things by not having to worry about principal payments.

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The Banks: Usually provide long-term loans with regular principal and interest repayments, which may not suit the client's needs.

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5.???? Broker Involvement

HomeSec: Allows brokers to charge up to 4% commission. We also pay our brokers immediately at settlement of the loan, thus making it a very attractive option for brokers to recommend to their clients.

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The Banks: Broker commissions are often less, and the process is more geared towards brokers only being involved in urgent scenarios. A lot of banks and private lenders can take months to pay broker commissions too, which we think is very unfair on brokers that work very hard to settle loans.

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So, there you have it. We think HomeSec comes out on top every time. HomeSec is ideal for business owners that are seeking fast, flexible and hassle-free access to their equity. So, if one of your clients is in need of a short-term business loan be sure to get in touch with us today.

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?1300 93 83 83

https://www.homesec.com.au/

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