Intricacies of Funding Business Acquisition with Abhishek Maharaj
Business financing is a complex topic for many of us. Our brains have more questions than answers regarding business acquisition funding. Today, Abhishek Maharaj helps us understand the ins and outs of gaining funding.
Abhishek is a partner broker at Win Quote SME Finance. Win Quote specializes in commercial and business loans. Abhishek has over 20 years of experience in the finance industry, both through his work at significant bank institutions and his own business. In this episode, we discussed the world of commercial finance and explored the best ways to raise money for purchasing a business.
Currently, interest rates are going up in the Australian economy. Property prices are adjusting. It’s getting much more challenging to borrow the money to purchase the property because banks are looking hard into serviceability and everything else. But what’s happening in the commercial market?
Our expert today shares how the interest rates are affecting business finance, how fintech finance works, how to get banks to lend to you, the essence of a detailed business plan, and vendor financing, among other things.
If you are trying to find financing for your business, grab your notebook and pen. You are in for a fantastic class. Listen in and learn.
Key Talking Points of the Episode:
[01:39] The difference between residential and business finance
[02:04] What happening in the commercial market?
[05:23] What is Fintech finance?
[07:44] Things that banks consider when lending to purchase a business?
[14:19] Residential Mortgage versus standard commercial loan
[18:15] How banks assess someone’s ability to run a business
[20:41] How detailed should a business plan be?
[22:48] What is due diligence?
[26:28] Prepared and unprepared from a bank’s point of view
[29:33] Unconditional approval of financing
[32:41] Is it possible to have pre-approval for a business purchase?
[41:46] Is vendor finance common?
[42:33] Does vendor finance increase risk from the bank’s point of view?
[43:35] How Abhishek structures deals
[49:11] the main difference between commercial finance and residential finance
[52:16] Trends to look out for in 2023 in the lending space
[54:15] Tips on how to increase likely hood of gaining finance
[58:26] Will the interest rates affect business acquisitions?
[01:00:41] Connect with Abhishek
Magical Quotes from the Episode:
“It’s possible to finance a business. But you’ll pay for it.”
“When the buyer is buying a business, they want to make the right decision, and make sure that that investment is going to return to free. Often, it’s not going to “
“In commercial lending, you can look at forecasted future income, whereas with residential lending, the bank wants to see you earning a certain amount of income for a period to service your property purchase or whatever it is.
Connect with Abhishek Maharaj
Visit Our Listings Page: http://tiny.cc/woe55
Visit Us: http://www.xcllusive.com.au
Call Us: (02) 9817 3331