Finance Strategy for Business Sectors

Funding insights for metro & rural locations

We have developed competency in lending strategies for business sectors in city and rural locations across Australia.

Credit providers are increasingly focused on understanding what drives behaviour and credit risk in specific industries and set lending policies accordingly. We understand and interpret established and emerging policy guidelines across service areas such as Real Estate Agencies, Financial Planning, Finance Broking, Insurance, Legal and Accounting.

The result is a better match of credit provider to client for a successful lending outcome.

Business Sectors Insights

Benefit from our expertise in lender appetite, valuation measures and debt strategies across a range of professional services and regional business industries.

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Accounting

Banks like lending to accounting businesses, especially ones without reliance on one key partner/owner.

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Agrifarming

The specialised nature of agriculture differs from commercial or mortgage lending. Agribusiness banks generally provide farmers with financial products, such as business loans, online banking access and insurance that cater to the agricultural industry.

Since the panel of credit providers that offer farm and farm assets services is thinner, specialised advice from an agribusiness finance broker is recommended.

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Finance Broking

Lending policies for the Finance Broking industry are developing as the segment matures.

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Explore MCP Advisory Services for more insights.

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Financial Planning

Lending for operators in the Financial Planning industry is changing as the segment evolves.

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Hospitality, Tourism & Leisure

HTL Assets have become increasingly popular with investors and owner-operators alike.  They have specific credit policy that supports them.

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Insurance

SMEs in the insurance broking industry are growing in number and stature as leading professional service providers. Lending confidence is following suit.

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Legal

SMEs in the legal industry make up the second most demanded of all professional service providers.

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Medical & Healthcare

The medical profession has long been a preferred segment for banking and finance.

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Property Investment & Development

Property investment is diverse, and finance needs can be complex in their structure. For those interested in property development, we have many insights and experiences to share.

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If you have Commercial Property Investments, it is important to understand the profile of the tenants and subsequent weighted average lease expiry (WALE) in determining property value.

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Real Estate

Lending for Real Estate Agencies has become increasingly intricate in recent years.

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SMSF

Lending using SMSF structures needs advice. Since lending is only part of the process, talking to all your advisers is essential.

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As a comparison to SMSF, consider alternatives such as a Private Investment Company (PIC).

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Transport

The transport industry plays a key role in the Australian economy but also faces challenging conditions with regulations, fuel costs, environmental and technology factors becoming increasingly relevant.

Structuring credit facilities for transport operators takes experience. 

 

Other Industries

Other Industries

Our team has experience in several industries and business types, including service businesses, technology-based businesses, importers and manufacturers.  Ask us about yours.

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Connect to a Lending Specialist

Sector Insights

Our summary insights into sector lending provide you with a starting point for identifying your business needs.

Professional Services

Real Estate Agencies
Purpose
Refinance, Purchase of existing rent rolls, Succession Planning, Investment.
Parameters
Up to 60-65% of Valuation.  Supported by Circa up to 2.0 - 2.5 times Multiple of EBITDA (adjusted or owner salaries)
Indicative Term
Generally up to 5-10 Year Amortisation
Security
GSA over trading business and borrowing entity.  Standard Guarantees & Indemnities.  If applicable, aggregator tripartite agreement deed between all relevant parties.
Credit Appetite
Medium to High
Accounting
Purpose
Refinance, Practice Purchase, Practice Establishment, Working Capital, Business Succession
LVR%
50-60% of Gross Fee Income.  Circa 3-3.5 times Multiple of EBITDA (adjusted or owner salaries)
Indicative Term
Up to 7-10 Years (without supporting tangible security)
Security
GSA over trading business.  Standard Guarantees & Indemnities.  Keyman Insurance if applicable.
Credit Appetite
High
Legal
Purpose
Refinance, Purchase of existing loan portfolios, Succession Planning, Investment
LVR%
1.5 times total recurring income.  Circa up to 2.0 - 2.5 times Multiple of EBITDA (adjusted or owner salaries)
Indicative Term
Generally up to 5-7 Year Amortisation.
Security
GSA over trading business and borrowing entity.  Standard Guarantees & Indemnities.  If applicable, aggregator tripartite agreement deed between all relevant parties.
Credit Appetite
Medium
Insurance Broking
Purpose
Refinance, Purchase of Business, Succession Planning, Investment
LVR%
1.5 times total recurring income.  Circa up to 2.0 - 2.5 times Multiple of EBITDA (adjusted or owner salaries)
Indicative Term
Generally up to 5-7 Year Amortisation
Security
GSA over trading business. Standard Guarantees & Indemnities.  Keyman Insurance if applicable.
Credit Appetite
Medium

Medical

Pharmacy
Purpose
Refinance, Business Purchase, Working Capital, Equipment, Business Succession, Fit-out
LVR%
Existing Business - 65-75% of Valuation.   Greenfield Site 55-65%
Indicative Term
Up to 15 Years (without supporting tangible security)
Security
GSA over trading business.  Standard Guarantees & Indemnities
Credit Appetite
Low to Medium
Aged Care
Purpose
Refinance, Business Purchase, Working Capital, Construction of Facilities
LVR%
Existing Business - 60-65% of Valuation.   Purchase Site 70-75%
Indicative Term
Up to 5-7 Years (without supporting tangible security)
Security
GSA over trading business.  Standard Guarantees & Indemnities.  First Mortgage over Property
Credit Appetite
Low to Medium
Medical Practice
Purpose
Refinance, Business Purchase, Working Capital, Equipment, Business Succession, Fit-out
LVR%
Existing Business - 80-100% of Valuation.   Greenfield Site 80-100%
Indicative Term
Up to 20-25 Years (without supporting tangible security)
Security
GSA over trading business.  Standard Guarantees & Indemnities.  First Mortgage over Property
Credit Appetite
High

SMSF

Investment
Purpose
Refinance, Investment.
Parameters
Up to 60-75% of Valuation.  SMSF minimum Net Asset Position of $500,000 at application stage
Indicative Term
25 Years Residential Property. 15 Years Commercial Property
Security
Non-specialised securities only
Credit Appetite
Medium

Agriculture

Agriculture
Purpose
Refinance, Purchase of Agriculture Property, Livestock, Plant & Equipment
Parameters
Rural Freehold to 70-75%.  Grain, Cattle, Dairy etc circa 50% of valuation.  20-25% assigned to PPE
Indicative Term
Generally up to 15 Year Amortisation depending on asset type
Security
GSA over trading business and borrowing entity.  Standard Guarantees & Indemnities.  1st Mortgage over all farm assets including home.   GSA or SSA over licence and quota agreements
Credit Appetite
Medium

Franchising

Franchising
Purpose
Refinance, Leasehold and/or Freehold Purchase, Working Capital, Investment
Parameters
Up to 60% of existing business.  50% of Greenfield Franchise
Indicative Term
Within overall franchise term, or Up to 10 Year Amortisation
Security
GSA over trading business, borrowing entity and/or entity that holds franchise agreement.  Standard Guarantees & Indemnities. Right of Entry
Credit Appetite
Low to Medium

Property

Investment
Purpose
Refinance, Purchase, Improvements, Investment
Parameters
Up to 65-75% of Valuation.  Interest Only terms up to 5 years. Stronger Amortisation for Higher LVR's
Indicative Term
30 Years Residential Property. 15-20 Years Commercial Property
Security
Non-specialised and Specialised securities. First registered mortgage over security property and GSA over borrowing entity
Credit Appetite
High
Development
Purpose
Construction, Purchase, Improvements, Development
Parameters
Borrow up to the lower of 75% of the land and construction costs (LDC) or 65% of the Gross realisation Value (GRV). Pre-Sales are generally a requirement which more than cover peak debt
Indicative Term
For the duration of the construction and development period. Up to 3 Years
Security
Non-specialised and Specialised securities. First registered mortgage over security property and GSA over borrowing entity. Security cover includes pre-sale deposits
Credit Appetite
Low to Medium

Transport

Property
Purpose
Refinance, Purchase, Improvements
Parameters
Up to 65-75% of Valuation.  Interest Only terms up to 5 years. Stronger Amortisation for Higher LVR's
Indicative Term
15-20 Years Commercial Property. 15 Years Industrial Property
Security
Non-specialised and Specialised securities. First registered mortgage over security property and GSA over borrowing entity
Credit Appetite
Medium to High

Leisure Assets

Pubs & Hotels
Purpose
Refinance, Business Purchase, Equipment, Renovation/Improvement
LVR%
Freehold (Gaming): 60-65% of Valuation. Freehold: 50-55% of Valuation.  50% Leasehold
Indicative Term
Up to 10 Years (without supporting tangible security)
Security
GSA over trading business.  Standard Guarantees & Indemnities.  First Mortgage over Property
Credit Appetite
Medium
Registered Clubs
Purpose
Refinance, Purchase
Parameters
Up to 50-55% of Leasehold Valuation
Indicative Term
Generally up to 5-10 Year Amortisation
Security
GSA over trading business and borrowing entity.  Standard Guarantees & Indemnities.  The GSA to include any gaming licence and liquor licence
Credit Appetite
Low to Medium

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Here to connect you with business and financial strategies. Contact us to start a conversation.

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