You have a business that is successful, you have been able to develop some strong equity in your existing property(ies) and have an opportunity that requires you to raise some cash for a new venture or opportunity. We are proud to be Australia’s Business finance specialist especially when it comes to cash out lending for a worthwhile purpose.
There are many benefits to borrowing money as cash out as there are also some points to be aware of:
Using your existing equity for cash out lending can mean you do not have to tie up other assets as security for this new facility.
Provided the loan is for a worthwhile purpose you can generally have additional flexibility to use the funds as you need, whether that be expansion of the business, entry into other areas or purchase of other assets.
Allows you to utilise unused equity in your property to potentially get a better return on your funds.
Can you be used to invest back into the business to fund further growth opportunities and increase revenues.
Some things to keep in mind:
Any new lending still requires you to go through the normal lending procedures prior to being able to access any cash out.
Depending on the amount you would like to access in additional funding, the lender may still require some proof or evidence to confirm the purpose of the funds and confirm the purpose is acceptable for the type of loan being provided.
Additional lending means additional monthly commitments to meet. If the purpose of the funds is not going towards an income producing asset you will need to ensure the business is able to meet the additional monthly pressure on cash flow.