An 80% Commercial loan is a difficult loan to obtain. It may be possible for extremely strong clients. This type of loan is completely discretionary, and is only done on a full document basis.
Generally, it is for commercial loans less than $1m.
Documentation requested will include
- Copies of the directors personal tax returns for two years
- Copies of the company tax returns for two years, and full financials
- Copies of cheque account bank statements over the last 4-6 months and details of any overdraft facilities etc
- Copy of ATO Integrated Client account Running balance statement for company to ascertain its current tax position
- Schedule of current lease/hp facilities.
- Current debtor and creditor ageing list
Factors considered when assessing this type of commercial loan, will be strength of customer, overall net position, other real estate owned. cash flows, and future cash flows.