Lenders see risks in financing businesses with no deposit or residential property as security. Are you parents in a position to help?
A business loan with a guarantor allows you to borrow 100% of the commercial property value or the need for a residential property as security.
Your Mum and Dad, acting as the guarantor, can borrow up to 80% of the property value they own in equity to guarantee your business finance. The commercial loan would allow you to
- Borrow the full amount you would need to buy a retail shop front for your new business without any deposit.
- Limit your liability should you default on the commercial property loan.
- Get cheaper commercial interest rates -- sometimes up to 5 or 6 points cheaper -- by using a residential property as the security guarantee.
We’re happy on your progress and hope to help you expand your business. You can call us on 1300 889 743 to find out more about business loans. You can also fill in our free assessment form and one of our business finance specialists can help you.
Cheers,