Commercial Finance
Commercial Finance Structured Around Your Business
The right commercial finance solution starts with understanding the business.
What are you funding? Why is the finance required? How will the investment help the business? How will repayments affect cash flow? What information and security are available?
Pinnacle Finance Hub helps business owners explore commercial finance options based on the needs and financial position of the business rather than simply matching a loan amount to a product.
Experience across banking, business and commercial lending provides an understanding of both the borrower’s objectives and the factors lenders are likely to assess.
Commercial Lending for Australian Business
Commercial lenders may consider much more than the amount being borrowed. Depending on the transaction, assessment may include:
- \Historical financial performance
- \Current trading results
- \Cash flow
- \Existing debt
- \Business structure
- \Available security
- \Industry
- \Trading history
- \Directors and shareholders
- \Purpose of the finance
- \Repayment capacity
- \The asset being financed
The same transaction may also be assessed differently by different lenders.
Pinnacle Finance Hub helps businesses understand the likely requirements and consider which lending options may be suited to the transaction before an application is submitted.
Commercial Property Finance
Purchasing commercial property can be a significant step for a business or investor. Finance may be required to:
- \Purchase premises for your own business
- \Move from rented premises to ownership
- \Acquire a larger property as the business grows
- \Purchase commercial investment property
- \Refinance an existing commercial property
- \Access available commercial property equity
Commercial property lending can be assessed very differently from residential lending. Factors can include property type, location, valuation, lease arrangements, business financial performance, deposit or available equity, loan-to-value ratio, available security, proposed loan term and repayment capacity.
Pinnacle Finance Hub can help you understand those requirements and consider finance structures appropriate to the proposed property transaction.
Buying Business Premises
For some business owners, purchasing the property they operate from can form part of a longer-term business and asset strategy. Instead of continuing to rent premises from an unrelated owner, the business may be considering acquiring a property suited to its current and future needs.
However, purchasing premises also creates new commitments and can tie up capital that might otherwise be used elsewhere in the business. Important considerations may include:
- \Deposit requirements
- \Available equity
- \Repayments
- \Business cash flow
- \Purchase costs
- \Required security
- \Future growth plans
- \Working capital requirements
- \Proposed ownership structure
- \Finance term and repayment structure
Pinnacle Finance Hub can help explore how the proposed property purchase may fit within the broader financial position of the business.
Working Capital Finance
A profitable business can still experience cash flow pressure. The timing between paying expenses and receiving customer payments can create funding gaps, particularly when a business is growing. A business may need to fund:
- \Stock
- \Materials
- \Wages
- \Suppliers
- \Freight
- \Project costs
- \Additional employees
- \Larger customer orders
- \Seasonal demand
- \Expansion costs
Working capital finance may help bridge those timing gaps and provide additional flexibility. The appropriate solution will depend on why the funding is needed, how much is required and whether the requirement is short-term, seasonal or ongoing.
Pinnacle Finance Hub can help businesses consider working capital facilities and other commercial funding options relevant to their circumstances.
Working Capital Calculator
Growth can create pressure on cash flow.
Wages suppliers materials stock and other operating costs often need to be paid before customers pay their invoices
The Pinnacle Finance Hub Working Capital Calculator* gives you a simple starting point to estimate the cash gap your business may need to fund.
Use it to better understand your working capital needs and start a conversation about the funding options that may be available.
* The calculator is a guide only and does not replace professional financial advice.
Equipment and Asset Finance
Vehicles, machinery and equipment can help a business increase capacity, improve productivity or take on new opportunities. However, paying for major assets outright can also place pressure on cash reserves.
Pinnacle Finance Hub can help businesses explore finance for assets including:
- \Utes and vans
- \Commercial vehicles
- \Trucks
- \Trailers
- \Machinery
- \Earthmoving equipment
- \Plant
- \Tools
- \Manufacturing equipment
- \Technology
- \Other business equipment
The most suitable finance structure may depend on the asset being purchased, how it will be used, the business’s financial position and how long the asset is expected to provide value.
Financing the purchase may allow the business to spread the cost while retaining cash for other operational requirements.
Business Loans and Growth Finance
Businesses seek finance for many different reasons. Funding may be required to:
- \Expand into new premises
- \Employ additional staff
- \Purchase stock
- \Complete a fit-out
- \Fund a major contract
- \Invest in marketing
- \Upgrade systems or technology
- \Acquire another business
- \Meet a temporary cash flow equipment
- \Support broader business growth
The purpose and expected life of the investment should influence the way the finance is structured. A temporary funding requirement may call for a different solution from a long-term investment in business growth.
Pinnacle Finance Hub starts by understanding what the business needs the money to achieve and how any repayments will fit within ongoing cash flow.
Commercial Refinancing
Existing business finance should evolve as the business changes. Facilities that were suitable several years ago may no longer match the current financial position or future needs of the business.
A commercial refinancing review may consider:
- \Current rates
- \Existing facility limits
- \Repayment structures
- \Security arrangements
- \Commercial property loans
- \Working capital facilities
- \Equipment finance
- \Overall business debt
- \Future finance requirements
The objective is not simply to change lenders. It is to determine whether the existing finance structure is still appropriate and whether alternative structures may better support the business.
The Commercial Finance Process
Understand The Business Requirement
The starting pointis what needs to be funded and what the finance needs to achieve.
Review the Financial Position
Relevant business financial information, existing commitments and security are considered.
Consider the Finance Structure
The facility needs to suit both the purpose of the borrowing and the ongoing needs of the business.
Review Suitable Lending Options
Available lenders and finance structures can then be assessed against the transaction.
Prepare the Application
Pinnacle Finance Hub helps bring together the information needed to present the finance request clearly.
Manage the Process
The application is managed through assessment, approval and settlement.
Why Partner with Pinnacle Finance Hub for Commercial Finance?
Commercial Lending Experience
Experience in commercial lending provides an understanding of the information lenders are likely to focus on.
Comfortable With Business Financials
Financial statements are central to many commercial applications. Pinnacle Finance Hub understands the importance of the numbers behind the application.
Equipment Understanding of Small Business
Finance needs to make sense operationally as well as meet lender requirements.
Residential and Commercial Capability
Business owners may have personal property, commercial property, equipment and business debt forming part of the same overall financial position.
Access to Multiple Lending Options
Different lenders have different policies, pricing and appetite for particular transactions.
Frequently Asked Questions
What Can Commercial Finance Be Used For?
Depending on the lender and circumstances, commercial finance may be used for commercial property, equipment, vehicles, working capital, business expansion, refinancing and other legitimate business purposes.
How Do Lenders Assess a Commercial Loan?
Assessment can include financial performance, cash flow, existing debts, available security, industry, trading history and the reason the funding is required.
Can Finance Be Used to Buy My Business Premises?
Commercial property finance may be available to purchase premises for an operating business, subject to lender criteria and assessment.
What Is Working Capital Finance?
Working capital finance can provide funding to assist with short-term operational requirements or timing gaps between business expenses and incoming revenue.
Can Equipment and Vehicles Be Financed?
Depending on the asset and business circumstances, finance may be available for vehicles, machinery, plant and other business equipment.
Why Use a Commercial Finance Broker Instead of One Bank?
Different lenders can have different lending policies, pricing, industry preferences and assessment methods. Considering more than one option can help identify lenders better suited to a particular transaction.
Commercial Finance for the Next Stage of Your Business
Whether you are purchasing property, investing in equipment, managing working capital, expanding the business or reviewing existing finance, Pinnacle Finance Hub can help you explore your options.