Business loan – Franchise cafe

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The case we will discuss today is a franchise coffee shop, with our help the loan has successfully been approved.

According to the latest report <Business Environment 2019> by World Bank, New Zealand has been ranked as the No.1 Superior in Business over the 190 countries. In other words, comparing to the others, New Zealand has the most competitive environment for start-ups and investors. However, there is a tendency that business transaction is becoming much popular in this fierce society. For instance, stable income and affordable risks are the key factors.

Two ways for your business Loan application:

  • You can either get the loan with a secured personal asset, i.e. house.
  • Or use the existing positive cash flow from the business to prove to the bank that you have the capacity for the repayment.

For people who are looking for business:

  • Individuals can seek for several banks and compare your preference, consult with banker with the application process. (it takes time)
  • EverBright Finance as a third-party mortgage platform, we will negotiate with the banks on behalf on our clients and also analyse different policies thus provide our clients a better option.

Q&A

  • Why mortgage adviser?

Unlike the home loan, the requirement for a business loan is much trickier. For instance, we individuals sometimes have no clue which bank has the lowest interest rate, their risk appetites, or the policy has loosened because of the depression.

Therefore, an experienced mortgage adviser is a MUST! The adviser in EverBright Finance has cultivated in the financial industry for over 10 years, built an ongoing connection with the banks and other non-bank lending institutions.

For our clients, firstly we will build a risk portfolio to analyse, then optimize their business plans and efficiently improve the rate of approval. (ROA). Here is the case study is shown below:

Client: Mr. Li who purchase the franchise coffee shop.

Mortgage Type: Business loan

Deal Price: $200,000

Mortgage Amount: $200,000

Secure: cash flow from the business

Processing Time: apt 2 weeks

 

More details:

With the lack of knowledge in mortgage policy, Mr.Li has failed several times with his application. The difficulty, in this case, is that Mr.Li has no relevant experiences in the retail industry, nor any personal asset as security to guarantee his repayment.

Song, one of our excellent mortgage adviser has helped Mr.Li altered such a situation and received the full amount of mortgages within two weeks. Here we briefly explained the structure of Song’s financial portfolio.

First of all, after comparing all the risks and benefits of each bank using our systematic data, Song opted for a particular bank that best suit Mr.Li’s demand.

Based on his financial background, Song built a lending application that includes the risk assessment and also to foresee the market trend. Meanwhile, doing some research on the industry competitor is essential, to analyse the competition in the area, thus optimize the business plan and to utilize the cash flow. Eventually, Mr.Li received his loan without any personal security guaranteed.

In general, Song has over 10 years of experience in BNZ and now as a financial adviser dedicated to proving a long-term relationship with banks, to serve clients with his professionalism. If you have any questions about mortgages, please don’t hesitate to contact us!

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