Frequently asked questions
Can I make additional payments?
Maximizing your business finance flexibility is crucial. Most of our lenders accommodate additional payments, helping reduce interest over time.
What kind of support can I expect during the loan application process?
From the first consultation to loan disbursement, our commercial lending experts guide you at every juncture, ensuring a seamless business finance experience.
Are there any hidden fees or costs?
With Colossal Finance, transparency is paramount. All associated costs and fees are lucidly detailed, ensuring you're equipped with all the information necessary for your asset finance or business loan journey.
How do the loan repayments work?
Keeping commercial loan repayments simple and transparent is our aim. Typically, repayments are made monthly via direct debit, with all terms outlined clearly in your tailored business loan agreement. We have some lenders who accept monthly payment via Credit-Card.
Is it safe to link my bank account to the lending platform?
Absolutely. Our top-tier asset finance platform employs Illion’s market-leading bankstatements.com.au, a highly advanced and encrypted tool, ensuring your bank details remain secure and private throughout the business finance process.
Will my personal information be protected?
At Colossal Finance, we prioritize the safety of your business and personal information. All data is securely stored using the latest encryption technologies, safeguarding the confidentiality integral to our asset finance and commercial lending services. You can read more about our privacy policy
What is a balloon and how does it work?
A balloon payment, often encountered in the realm of asset finance, is a larger final payment at the end of a loan term. It reduces your monthly repayments, providing flexibility, especially when budgeting for commercial vehicle finance or equipment needs.
What is the maximum age of the asset? Is it cheaper to finance if newer?
In asset finance, the age of the asset, especially for commercial vehicle finance, often dictates its financing terms. Newer assets might attract better financing rates due to reduced risk. Generally, assets under five years of age are preferable, but we accommodate any asset age based on the asset's condition and value and use.
Do you fund private sales?
Certainly! At Colossal Finance, we recognize the value of diverse asset acquisition channels. We support financing for private sales, ensuring your asset finance needs are met, be it through dealerships or private sales.
What is the maximum balloon?
The maximum balloon payment largely depends on the asset type and its depreciation rate. While many commercial vehicle finance options might allow up to 50% as a balloon, it's essential to consult with our asset finance experts to determine what's best for your unique scenario.
Does it have to be for business use?
Primarily, our asset finance solutions cater to business needs, optimizing commercial vehicle finance, equipment, and more. However, specific arrangements might be made for personal use based on the asset and financing terms.
What’s a balloon/Residual Value? Is it a part of the loan?
A balloon, also known as Residual Value (RV), is not an extra fee but part of your loan structure in asset finance. While it's an integral portion of the loan, it's a larger sum paid at the end, allowing for smaller monthly repayments, especially popular in commercial vehicle finance options. This residual or balloon can be paid out when the asset is sold or refinanced at end of term.
What’s a balloon/Residual Value? Is it a part of the loan?
A balloon, also known as Residual Value (RV), is not an extra fee but part of your loan structure in asset finance. While it's an integral portion of the loan, it's a larger sum paid at the end, allowing for smaller monthly repayments, especially popular in commercial vehicle finance options. This residual or balloon can be paid out when the asset is sold or refinanced at end of term.
Differences between a consumer and commercial loan/asset finance?
Consumer loans are personal in nature, focusing on individual needs, while commercial loans or asset finance solutions cater to business requirements, such as commercial vehicle finance or machinery acquisition. The latter often provides tax benefits and flexible structures tailored to business cash flows.
What constitutes a commercial vehicle?
A commercial vehicle, vital in asset finance discussions, is primarily used for business purposes.
How much deposit is required, if any?
Deposit requirements in asset finance vary based on the asset type, its value, and the financing terms. While some commercial vehicle finance options might not require a deposit, others might request a percentage of the asset's value.
Can I refinance an existing asset?
Absolutely. Leveraging our expertise in asset finance, Colossal Finance offers refinancing solutions, providing businesses the opportunity to optimize their cash flow or secure better financing terms for existing assets. We can complete a Sale & Hireback on any asset regardless of when it was purchased.
Are there any restrictions on the type of assets I can finance?
While our asset finance solutions encompass a broad range, from commercial vehicles to machinery, certain restrictions might apply based on the asset's age, condition, and intended use with some lenders. Our team provides guidance, ensuring you secure the best financing terms.
What if I have an issue with my credit score?
Every entrepreneur faces challenges. Despite credit score hiccups, Colossal Finance collaborates with a range of lenders, including those who assist businesses with credit challenges, ensuring your commercial goals remain within reach.
Why do we go to a particular lender?
Every business's financial needs are unique. Our team matches clients with lenders based on loan purpose, desired terms, and the lender's strengths in the asset finance and commercial lending sectors.
How much information is required for approval?
The specifics of our business loan approval process depend on the loan type. Whether it's a standard or low-doc loan, we aim to streamline the process on every deal, requiring only necessary details to expedite your commercial ambitions. We will actively advise whether a better solution will require more information for you to make your decision.
If I was to shop around, would I get a better rate?
Colossal Finance strives for excellence in the commercial lending landscape. Leveraging our strong lender relationships, we work diligently to secure competitive rates and optimal asset finance terms for our clients. Being a member of Australia’s largest Privately owned Aggregator allows us to guarantee preferential rates to all clients.
Do I qualify to apply for business finance?
Eligibility for our commercial loans depends on various factors. But generally, with Colossal Finance, if you're over 18, seeking funding for valid business reasons, and can demonstrate repayment ability, you're on the right path.
Are there penalties for early payout?
Navigating the complexities of business finance is easier with the right information. While some lenders may charge early payout fees, we ensure you're fully informed about potential penalties before finalising any agreement. So that you can make an informed decision.
How much money can I borrow for a business loan?
The amount you can borrow for a business loan varies widely and is determined by a range of factors including the purpose of the loan, your business's financial health, and the lender's terms. At Colossal Finance, we work to understand your unique needs and help secure the optimal funding solution.
Ease of approval for a commercial loan?
We streamline the application and approval process for commercial loans. With our strong lender relationships and understanding of various industries, we are often able to secure approvals more efficiently.
What is the speed of approval for commercial loans?
The speed of approval for commercial loans can depend on the complexity of the loan and the specific lender. However, our goal at Colossal Finance is to expedite the process and potentially secure approvals in as little as a few business days.
Can you do better? Is the rate you’ve given me the lowest?
We aim to secure the most competitive rates available for your business loan. Our comprehensive approach includes negotiating on your behalf and leveraging our strong lender relationships to seek the best possible outcomes.
Are there options for fixed or variable interest rates?
Yes, options for both fixed and variable interest rates are typically available for commercial loans. The choice between the two often depends on your business’s specific needs and financial strategy.
What documentation will I need to provide for a commercial loan?
Documentation requirements for commercial loans often include financial statements, business plans, tax returns, and details about the purpose of the loan. We guide you through the process to ensure all necessary information is submitted.
What interest rate will apply to a business loan if approved?
The interest rate for a commercial loan is typically determined based on a variety of factors, including your business’s financial position, the loan amount, and the loan term. We strive to negotiate the most competitive rates for our clients to ensure their business needs are met in the most cost-effective way possible.
Are any early repayment fees payable?
Early repayment policies vary among lenders. Some may charge fees for early repayments, while others don't. We aim to secure commercial loans that offer flexibility in repayments, including early repayments without penalties where possible.
What are the terms of a commercial loan?
Commercial loan terms are highly dependent on the type of loan and the specific financial circumstances of your business. They can range from short-term loans of a few months to long-term loans extending up to 20 years or more. We work with you to identify the best loan term that aligns with your business strategy and cash flow.
What rate can you get me?
Our commitment at Colossal Finance is to negotiate the best possible rate for your business loan. The final rate depends on various factors such as your business's financial health, the loan amount, and the loan term.
What are the payment terms?
Payment terms for a commercial loan can vary widely. Options may include monthly, quarterly, or annually payments, and could be based on a fixed or variable interest rate. We tailor the repayment structure to match your business's cash flow and financial situation.
How much money can I borrow for a business loan?
The amount you can borrow for a business loan varies widely and is determined by a range of factors including the purpose of the loan, your business's financial health, and the lender's terms. At Colossal Finance, we work to understand your unique needs and help secure the optimal funding solution.
Who is eligible for Trade Finance?
Businesses that are engaged in import or export transactions can typically access trade finance. Different lenders may have different criteria, but generally, they will look at factors like the nature of the transaction, the businesses involved, and the specific risks associated with the deal.
How does Debtor Finance Work?
Debtor finance involves a business selling its outstanding invoices to a finance company in exchange for an upfront percentage of their value. The finance company then collects payment from the business's customers and pays the remaining balance to the business, minus fees and interest.
How quickly can I access funds with Debor Finance?
The speed at which you can access funds via debtor finance depends on your lender, but in many cases, you could potentially receive funds within 24 hours of invoice verification.
Are there specific industries that can benefit more from Trade Finance or Debtor Finance?
Trade finance can be particularly beneficial for businesses in sectors such as manufacturing, wholesale, import/export, and retail, where large-volume transactions with international partners are common. Debtor finance can be a valuable tool for businesses in sectors such as recruitment, transport, wholesale, manufacturing, and construction, where cash flow can be impacted by extended payment terms.
Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. It's a key aspect of many import and export transactions, providing short-term financing solutions that can help businesses expand into new markets.
How can Trade Finance benefit my business?
Trade finance can offer significant benefits to businesses, including reducing the risk of international trade, improving cash flow, and allowing companies to take on larger transactions with increased confidence.
Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. It's a key aspect of many import and export transactions, providing short-term financing solutions that can help businesses expand into new markets.
How can Trade Finance benefit my business?
Trade finance can offer significant benefits to businesses, including reducing the risk of international trade, improving cash flow, and allowing companies to take on larger transactions with increased confidence.
Debtor finance is a type of funding that allows a business to access funds tied up in its outstanding invoices. Instead of waiting for customers to pay within their credit terms, businesses can get an advance on these payments from a finance company.
What are the benefits of Debtor Finance?
Debtor finance can significantly improve a business's cash flow by providing an immediate cash injection. It's also an attractive option because the finance is secured by the business's receivables, rather than the business having to offer up other assets as security.
Who is eligible for Trade Finance?
Businesses that are engaged in import or export transactions can typically access trade finance. Different lenders may have different criteria, but generally, they will look at factors like the nature of the transaction, the businesses involved, and the specific risks associated with the deal.
How does Debtor Finance Work?
Debtor finance involves a business selling its outstanding invoices to a finance company in exchange for an upfront percentage of their value. The finance company then collects payment from the business's customers and pays the remaining balance to the business, minus fees and interest.
