Commercial loans for a Smash Repair business exist with number of financial institutions in Australia.
What can I borrow?
- Where you are buying the smash repairs workshop you may be able to borrow up to 80% of the values of the property, however where you add a guarantor or even add a residential security to the loan, you can borrow up to 100% of the value of the property you are purchasing.
- You can borrow up to 25 years with certain lender.
- No annual reviews up to $1 million.
- Loans are limited to a maximum of $10 million dollars, but some higher loan amounts may be considered on individual basis.
- You may be able to get a low doc loan if you don’t have the required financials for certain property types.
Am I eligible?
- You will need to have at least 2 years managerial experience within the panel beating industry.
- You will need to be to demonstrate servicing.
- You will need to have a detailed business plan as to how you plan to run a successful smash repair workshop; the plan needs to show your forecast for cash-flow, insight into your chosen location and insight into nearby competitors.
- Banks will want to see that the business has low debts compared to their income.
How do banks value the property?
- Its location- this is because workshops located in metro areas or even major regional areas tend to be viewed favourably as they are more likely to attract more customers.
- What is also relevant is whether it is a standard workshop or a purpose-built workshop; where they are purpose built to carry out specific functions they aren’t usually easily altered or restructured for other uses, therefore renting them out or reselling them may be more difficult. As they also require specific valuations and environmental reports banks are particularly cautious as to whether any chemicals stored have been done correctly. These reports can also be extremely costly, so banks may require you to have larger deposits when considering taking on the loan.
- These properties are usually industrial type properties, either being designated light or heavy industrial.
- Banks will want to see that you have tenants who are willing to sign a long term lease, where you are buying the workshop as a freehold property.
What security can I offer?
- Residential property.
- Industrial property.
- Depending on whether you will be operating a business yourself; fixed and floating charge or bill of sale over all the assets held by the business.
- A guarantee provided by all the directors.
- A deed of consent provided by the lessor to the bank.
Our brokers will source the right loan for your unique financial situation. Give us a call today or send us an online enquiry and we will contact you!