Average time to sell a business stretches out as buyers find it hard to get finance

A survey of LINK business brokers has shown the average time to sell a business has stretched out from 15 to 21 weeks as buyers struggle to get the finance needed to seal the deal. The survey also found the delays in obtaining business finance were pushing down sale prices, with the average price dropping from $400,000 to $225,000.

LINK managing director David Fitzgerald says this significantly makes it hard for business owners. Furthermore, the average buyer is “taking almost nine months to find a business that is suitable or that they can afford.”

The survey showed a 39% increase in the number of interested business buyers. However, about 38% of buyers surveyed have had to re-evaluate the types of businesses they can afford due to tightening lending policies, while 44% of buyers said the biggest problem is getting finance from the banks.

Overall, approximately 81% of business owners and buyers have had trouble obtaining finance from the banks.

If you require finance to start up a new business, buy a business or need business cash flow to expand your operations, but you are having problems with your bank because of the stricter lending criteria, speak to one of the business finance advisers at Intellichoice today on 1300 55 10 45. We have helped numerous clients to achieve their dreams and goals through alternative business finance solutions, including invoice finance, business loans, trade or import finance, inventory finance and equipment rental hire.

Trade finance solutions for your business

Is your company is having difficulty getting a business loan from a traditional bank or mortgage lender? Do you need help expanding and growing operations overseas but your bank is restricting your growth? Then your business needs to speak to one of our Australian mortgage brokers about import finance or trade finance. This business cash flow solution can be tailored to suit your funding needs.

Import finance or trade finance gives you the confidence to trade and take advantage of any market opportunities that arise.

Some of the benefits of import or trade finance include the following:

• Import finance provides for all aspects of manufacture, import, commissioning, payment and long term asset finance
• Pay overseas and local suppliers for goods with trade finance
• Trade finance gives your business greater flexibility and liquidity
• You don't miss out on business opportunities due to inadequate cash flow
• Trade finance can help you to improve your negotiating position with suppliers as you are now able to accept quick payment terms and import greater quantities and obtain bulk discounts
• Allows for timely payments to your suppliers
• Import finance does not require property security
• No deposits required
• Get up to 100% finance of purchase cost with import finance

Case Study Example
Our Brisbane mortgage broker recently helped a client who had new business opportunities for growth. His turnover would increase from $1 million to $4 million a month.

The bank had taken 2.5 months to get approval. It was costing our client's company a lot of money in lost business opportunities, but also to get the facility set up.

Our mortgage brokers in Australia introduced him to a new funder and he got approval within 1 day and the business finance facility was set up within 2 weeks at the same rate that the bank was going to charge him.

Our dedicated trade finance team will help you through the whole process and provide you with more information on how import finance can help grow your business. Contact one of our mortgage brokers today on +61 7 3624 1900 to find out more about import finance and whether this is suitable for your business.

Business confidence in Australia soars

The outlook for businesses in Australia is at its highest level in 5 years with business owners and senior executives confident of a strong June 2010 quarter.

Australian businesses have been buoyed by a sustained economic recovery and the fact that Australia avoided a technical recession. Any fears that the Australian economy might suffer a second shock have all but disappeared. However, inflation pressures are building, which could negatively impact any hopes for growth.

In light of the positive outlook, if you need business finance to expand and grow your business, speak to the mortgage brokers at Intellichoice. We have access to a range of business loan products, including commercial finance, invoice finance, trade finance and inventory finance. Call +61 7 3624 1900 for more information about our business cash flow solutions.

Get more information about invoice finance

If you want to expand or grow your business, the mortgage brokers at Intellichoice have a huge range of business finance solutions to meet your business needs, including:

• Commercial loans
• Business Loans
• Invoice Finance
• Trade Finance
• Inventory Finance or Stock Finance
• Equipment Rental Hire
• Development Finance

Speak to a mortgage broker on +61 7 362 41900 today for more information about invoice finance and whether this is suitable for you. Intellichoice have access to a wide range of business cash flow solutions to meet your business needs.