Frequently Asked Questions
The first step is to speak to a Commercial Broker at Specter Financial over the phone. We’ll discuss your business and your goals, and gather some key details about your operations and financial history. Then leave it to us – we’ll negotiate with our extensive lender panel and respond with commercial finance solutions tailored to your unique situation. Speaking to us is completely free and you’re under no obligation to go ahead. Request a call back here.
To be eligible for financing or loans via Specter Financial you will need to meet one of two of the following criteria. If you have been running your business for a period greater than 3 months, you qualify for financing. If you own/are currently paying off property, you are also eligible, regardless of current circumstances relating to your business. If you do not fall into either of these categories, get in contact with a friendly member of our team and we can discuss possible tactics moving forward.
This will be determined on a case-by-case basis. Our team will provide you with loan limits depending on your business’s current turnover and profitability, or the equity stake you have in your properties listed.
At Specter Financial, our customer-centric philosophy means that we will always strive towards terms that enable the highest chance of success for you. Once we have established your current situation and future ambitions, we can work with you to arrive at terms that are customised to your needs and mutually beneficial for both parties.
This will depend on the complexity of your financing requirements. Typically, Specter Financial offers same day approval and funding for straight-forward non secured loans. You can expect to receive secured loan approval and funding within a 24-48 hour time frame. Keep in mind each loan is different, so these guidelines are subject to change.
Commercial loans are not governed by the National Consumer Credit Protection Act 2001 (NCCP Act), meaning negotiations with lenders can be more flexible and fruitful for you, the consumer.
That is why it is vital to have an experienced broker in your corner during these negotiations. Having worked in many sides of the financial system, the experts at Specter Financial are aware of what banks and lenders want to see in an application. Without this experience, the banks often capitalise on loanees lack of knowledge—overcharging and locking you into loans that are not weighed in your favour.
For commercial loans, it’s best to have a team like Specter Financial on your side. We’ll always make sure you’re aware of the best deals.
As your commercial brokers, we first get to know you as an individual, making sure we have fully understood the goals and ambitions of your business. Once we are on the same page, our team will record what type of property you are looking to get a loan for, whether that be a warehouse, office space, retail shop front or factory.
Next, your Specter Financial representative will collect information on your business.
-Are you a PAYG?
If so, you will need to provide us with your most recent payslip and group certificate.
-Are you self-employed?
If you answered yes, our team will need to see your BAS statements for the past 2-3 years and any supporting documents depicting your business and personal financials within that time. This can include tax returns. If you are unable to provide 2-3 years worth of income evidence, we do offer low doc solutions with a variety of specialist lenders we’re associated with.
Once we have collected these details, we will be armed with all we need to find you a loan that is just right for you. Our experience in the industry combined with our ability to negotiate, often results in competitive loan terms and interest rates for the clients we collaborate with.
After we have located the loan that suits your needs best, we will provide you with an Indicative Funding Proposal (IFP). This highlights the likely terms of your loan—once you give us the green light, we will send this off to be finalised by the lender. In the meantime, we handle all paperwork and communications with your solicitors, accountants and/or buying agents to ensure the process is as streamlined as possible.
First and foremost, we’re on your side. Here at Specter Financial, our only allegiance is to you. Our credit experience and knowledge of available rates and terms mean that we can approach the right lender for your situation. Some commercial brokers actually work for the banks, meaning that their motivations aren’t strictly aligned with your needs. This is where we differ.
We understand your goals and our success is often defined by your’s, meaning when we work on financing solutions for your business, we are in it for the long-haul.
Our time in the industry has also meant that we’re aware of things that the general public typically aren’t.
Did you know that some types of commercial loans can be offered at residential rates? Or that your Loan to Value (LTV) ratio isn’t set in stone?
Having access to this kind of knowledge enables us to secure better deals for our clients when they enlist in our commercial brokerage services.
At Specter Financial, you will always be made aware of fees and costs before being subject to them. It is completely free to talk to one of our dedicated brokers and you are under no obligation to proceed with any plans put forward.
Brokerage fees may be issued to cover man-hour costs needed relating to solving complex or unusual situations. This is usually due to the time needed to identify suitable lenders and deals for your business. However, as previously mentioned, you will always be notified of possible fees before moving forward.
Brokers who are FBAA Members are obliged to practice to the highest standards of the financial institutions they work for or within. This guarantees all laws and regulations established by industry regulators for fair business practices, ethical behaviour and compliance with finance law are met at all times. These are positive indicators for you, the borrower, as you know that the broker responsible for securing your loans is bound to adhere to the industry’s highest standards.
Currently, financial planning and wealth management is not offered as a direct service at Specter Financial. We will refer you to one of our trusted partners who’s most suited to catering to your needs. The partners we refer you to can help you with insurance, accounting, residential lending or superannuation advice and guidance.
When you’re looking to secure a loan through Specter Financial, you can expect to show the following documents:
Employment and salary history
- Current capital—this is your cash deposit that’s available to pay upfront
- Supporting evidence depicting the value of the property/asset being financed against
- Financial history (e.g. credit rating, expenses and debts)
If you are unable to provide these documents for unforeseen circumstances or have a poor credit rating, don’t worry! Get in touch with our friendly team and we can work towards tailored solutions for you.
Typically, lenders will look at 5 key factors when deciding to approve a loan.
Character
This is a look into your past financial behaviour. Have you paid back previous debts? If not, was it due to things outside of your control? Were you still making an effort despite financial troubles? More accurately, it is a look into your inclination and likelihood to take the right steps and act responsibly if your loan was to be approved. Those who haven’t earned much in the past will still be looked upon favourably if they are hardworking and reliable.
Documents and supporting evidence that may be required at this stage are:
– Tax returns
– Personal and/or business credit history (late payments, delinquent accounts etc.)
– Prior business ventures (did you pay off loans? Outstanding payments etc.)
– Job stability and previous employment history
Capacity
Your capacity to pay back a secured loan will be determined on past profit and loss statements for established businesses and projected revenue statements backed by data for new or planned businesses. Lenders will also look into any outstanding debts, as well as your circumstances—do you have dependants or current personal loans that could affect your ability to pay off this one?
Collateral
Collateral is offered as an assurance to the lender in the case that a loan is unable to be repaid. For unsecured loans, collateral is often unnecessary, however, it can improve the odds of being granted said loan. The lender will assess the collaterals future and present value to determine if it is suitable to cover your proposed loan. Interest rates on the loan could be influenced by the quality of your collateral. Speak to a broker at Specter Financial for more information on what classifies as collateral.
Capital
These are any assets that are currently storing your wealth and could be used to pay back the lender should you not be able to meet your loan repayments. Capital could include cash reserves, property, or items such as machinery, vehicles, and other inventory held by your business. Similarly to your collateral, lenders will assess the current and future values of these assets, to gauge the quality of your capital, as well as the likelihood and ability of these assets to be liquidated in the event of you being unable to repay your loan.
Conditions
The exact conditions of your proposed loan will be unique to your requirements. However, there are some things to consider:
– Interest rates & fees
– Loan amount
– Repayment schedule
To strengthen the likelihood of securing funding and having your loan approved, there is one thing we expect from our clients. Honesty.
When it comes to arriving at the right financial solution—it takes two to tango. At Specter Financial, we are more than willing to lead the dance and do all of the heavy lifting, but to ensure the best result we still need you to help us, help you.
What we mean by that is, we require you to be honest about your financial situation and goals at all times. If we keep our relationship as transparent as possible, we can quickly identify the best path for us to take towards your business or personal goals. Remember, we are on your team! Get in touch with one of our experienced brokers today!