Subprime & Short-Term Finance

general-loan-1-04What is a Subprime Loan?

  • A type of loan that is offered at a rate above prime to corporate entities who do not qualify for prime rate loans. Quite often, subprime borrowers are often turned away from traditional lenders because of their low credit ratings or other risk factors that suggest that they have a reasonable chance of defaulting on the debt repayment.
  • Subprime loans tend to have a higher interest rate than the prime rate offered on traditional loans. The additional percentage points of interest often translate to tens of thousands of dollars worth of additional interest payments over the life of a longer term loan. However, getting a subprime loan could still be a good idea if the loan is exclusively business related and will be used for growth or if it is meant to pay off a higher interest debt .
  • The specific amount of interest charged on a subprime loan is not set in stone. Different lenders may not value a borrower’s risk in the same manner. This means that a subprime loan borrower has an opportunity to save some additional money by shopping around.

 

Some possible uses of funds include:

  • Additional stock or taking advantage of bulk discounts
  • New or upgrade equipment
  • Renovations to grow your business
  • Opening new locations
  • Sales and marketing
  • Working capital management
  • Completion of a property development

 

Am I Eligible?

  • Have you been in business for at least 12 months?
  • Are your total monthly sales greater than $10,000?
  • Do you have net equity of greater than $300,000?

If you have answered YES to the above apply now for pre-approval or give us a call on 1300 558 887 to speak to one of our friendly team.

 

How much business funding can I get?

Naritas can loan between $50,000 and $1,000,000. The amount loaned will depend on:

  • The type of facilities you qualify for
  • If you are a trading enterprise, your average monthly card and cash sales as well as the stability of your business.
  • If you are a property developer, your net asset position and exit strategy

Why use Naritas?

 

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