Q. How long does it take to get funds?
A. We aim to settle all loans within 24 to 48 hours from your application. In most instances this is no issue, meaning you have the money you want, when you want it.
Q. What can I use the money for?
A. Instant Business Finance is a business lender, therefore funds borrowed need to be predominantly for business purposes. Common scenarios are:
– Purchasing a business
– Buy stock or equipment for an existing business
– Moving a development to the next stage. (if a residential development, it must be owned in a company name)
– Pay wages or tax
– Any business purpose we can help
Q. When do I pay the interest?
A. We simply capitalise the interest into the loan and you pay it all at the end of the loan term. For example, if you borrow the money for 3 months, the 3 months interest is capitalised into the loan for the 3 month term. That way you don’t have to worry about making payments each month.
Q. Does IBF do Valuations?
A. In most instances we don’t do valuations, and we don’t require a valuation from you? We simply work with real estate appraisals, which we arrange to have done.
Q. Do I have to complete loads of paperwork?
A. Not at all. We have a very simple 2 minute online application form. Instant Business Finance really aims to make this as easy as we can.
Q. How long can I borrow the funds for?
A. Loans are generally 1 – 6 months, but we can certainly accommodate situations where you may need the funds for a longer period of time.
Q. What do I need to be able to borrow funds from I.B.F.?
A. You simply need three things….
1). A genuine business purpose for the loan.
2). Enough equity in a piece of real estate.
3). An exit strategy (as these loans are only short term). An “exit strategy” simply means, how will you pay the loan back in 1 – 4 months. It maybe by way of a complete refinance, business cash-flow, or sale of the property, etc.
Q. How are the loans secured?
A. We secure all of our loans against real estate security. So you would need a piece of real estate, and we can lend up to 75% LVR (Loan to Valuation Ratio) on residential properties, and slightly less on other forms of security). This can be a house, land, or commercial property.
We can lend on unencumbered property, and we also lend on properties which already have a first mortgage in place. Just as long at the total debt of the property (including our loan) does not exceed 75% of the value of the property.
Q. Will I.B.F lend against multiple properties?
A. Yes we are happy to lend on multiple properties, and we lend Australia Wide.
Q. What happens if I pay my loan back early?
A. No problem at all. There are no penalties or charges if you repay the loan sooner. Interest is calculated in monthly blocks, so it simply means you’ll pay less interest because you only pay interest on the time you have the funds for.
Interest on any unused months will be rebated off the payout figure.
Q. What happens if I need more time?
A. We always try be be a flexible as possible. We understand things don’t always go to plan, but we just ask that you work us and keep the lines of communication open.
Should you require more time beyond the due date of the set loan term, you can simply extend by paying an additional months interest on or before the due date Or if settlement of a refinance or sale of the property is due but will happen just after the due date. Depending on certain circumstances, we can allow the loan to run over time (without penalty fees).