Check out our 6 most frequently asked questions below and contact us if you have more.
Why won’t the banks finance the loans that Quantum Credit will?
A bank may well fund Quantum Credit types of business loans - just not in the timeframe or on the terms expected by the borrower. Quantum Credit has expertise in a specialised lending niche that the mainstream bank lenders traditionally do not address well – asset-rich borrowers needing short term business loans quickly in order to grow and where they do not meet standard credit requirements. In these situations, Quantum Credit applies an asset-based-lending approach to its short term business loan, commercial property finance and investment loan assessments. We take the view that the equity in the property asset security will be sufficient to cover risks in the event of default. More background on why a borrower would use mortgage-secured non-bank business finance is provided here.
What experience does Quantum Credit have with short term business loans and who makes the lending decision?
We have been involved in credit assessment and lending for more than fifteen years on a property secured basis. All credit decisions are made in terms of a strict credit policy under which only nominated directors may make final credit approval decisions.
Does Quantum Credit consider the cash flow/income/profitability situation of borrowers?
To the extent that relevant information is available, it is certainly assessed. However, where such information is not current or is incomplete, Quantum Credit will assess other critical matters such as the purpose of the business finance required, the value of security property and the exit plan and approve or decline an application accordingly.
What rates does Quantum Credit lend at?
The rates of interest charged by Quantum Credit on short term business loans to small and medium sized companies are higher than those charged by banks on conventional (longer term) business loans. This is because the loans typically represent a higher risk over a shorter term than the traditional lending institutions are willing to consider. Rates for business loans will start at 9.75% pa and, depending on the risk of the deal, can go up to 2 % per month.
What is the fees and charges structure?
In addition to an interest rate cost for short term business and investment loans, Quantum Credit charges loan establishment and security fees, the amount of which will depend upon the complexity and riskiness of the short term finance loans in question.
Do I have to work with Quantum Credit through a broker?