Business Asset Funding

Business asset funding is one of the most popular ways for a company to obtain a large sum of cash that can be spent purchasing goods and products for use within their day to day operations. In short, it’s an option available to those that meet a certain level of criteria on a professional scale and it can be used to purchase pretty much anything to do with the functionality of an organisation.

Who can apply for business asset financing?

As the name might suggest, this type of loan is reserved for company owners and executives in specific. The purpose of the loan is to provide a sum of cash to a borrower under the agreement that they will use the money to buy what they need for their business. If they fail to keep up with their repayments then the purchased assets might be seized, and so this reassuring gesture can be of benefit to lenders that don’t wish to experience a loss on their investment, as well as borrowers that don’t want to be charged cash that they might not be able to afford.

In order to apply for business asset financing, the applicant must work on a professional basis and within a professional sector. They can own their own company, or work for someone else – but the main thing is that they can demonstrate that they earn on a professional level. And that’s where the criteria comes into the fray.

What is the specific criteria that an applicant must meet?

In the majority of cases and applicant will need to be able to prove:

  • At least 11 months of earning
  • An income of at least $100,000 AUD a year
  • A credit score of more than 600
  • No outstanding and unpaid debts (that have been voided as a result of non-payment)

With this information, a lender will be able to evaluate the potential for a borrower to pay back what they intend to borrow. If all appears in order then the lender might be more willing to approve the application, and the borrower could then receive their cash investment within less than a week. When using a good financial broker, this amount of time could be lessened even further.

In summary, anyone that meets the above criteria and is able to apply for as a business, or on behalf of one, can be eligible to submit an application. Different lenders will consider varying factors, so it’s best to seek professional advice before making a claim, or else run the risk of having the application rejected.