How to navigate commercial lending process with confidence

A step-by-step guide to securing commercial lending in Australia.

As the landscape of lending continues to evolve, by understanding the benefits and potential drawbacks across different loan products, you can make informed decisions that align with your financial goals.

Securing commercial financing can be a crucial step in growing your business. As a Brisbane-based non-bank lender, we understand the unique challenges businesses face when navigating the lending process. At IJ Capital, we are dedicated to helping clients navigate the complexities of the lending landscape. This guide outlines the steps to approach commercial lending, from preparation to securing your financing.

Step 1: Assess your financial needs

Identify loan purpose

• Determine how much funding you need and how it will be used, such as property development, expanding facilities, or land subdivision.

Evaluate assets

• Identify the assets you plan to use as collateral.

Step 2: Prepare documentation

Gather key documents

To apply for an asset-backed loan, you’ll typically need:

1. Asset valuation
   • Obtain a professional valuation of the asset(s) you plan to use as collateral.
     *IJ Capital will appoint an independent valuer to prepare a property valuation report.
2. Business plan
   • A concise business plan outlining your goals, how the loan will support your business, and repayment strategies.
3. Financial statements
   • Recent financial statements (last 2-3 years), including profit and loss statements and cash flow projections.
4. Personal financial statements
   • For business owners, personal financial details may be required to assess creditworthiness.

Step 3: Research lenders

Compare asset-backed lending options

• Look for lenders who specialise in asset-backed loans and understand your industry.
• Evaluate the loan products offered, including terms and interest rates.

Step 4: Submit your application

Prepare for application

• Clearly explain the purpose of the loan and how the assets will secure the financing.

Follow submission guidelines

• Submit your application and all required documentation according to the lender’s guidelines.

Step 6: Review loan offers

Evaluate terms carefully

• Review interest rates, repayment schedules, and fees associated with the loan offers.

Step 7: Finalise the loan

Complete due diligence

• Be prepared for the lender’s due diligence, which may include assessments of the collateral and further financial checks.

Sign the agreement

• Carefully review the final loan agreement before signing to ensure you understand your obligations.

Step 8: Access your funds

Understand the disbursement process

• Once the agreement is signed, confirm how and when the funds will be made available.
• At IJ Capital, we are committed to a quick turnaround—funds can be disbursed to borrowers as soon as 48 hours after the agreement is signed. This rapid access to funds allows you to act swiftly on your business opportunities.

With careful preparation and the right approach, you can access the financing you need to drive growth. If you’re considering a loan or would like to discuss your financing options further, feel free to contact our team today. We’re here to help you secure the funding you need to achieve your goals.