Where can I source an investor/lender that will loan money against turnover rather than equity.$500,000 sort?

I run a small business in the transport industry turning over approx $50k per mnth. Have built my business up from 1 x 10 year old truck to currently 2 x brand new trucks with trailers since Nov 2004. Have secured a 5 year agreement for work for both new trucks with an internationally owned company and am looking to consolidate business debt accrued in my short but fruitful progress thus far. Have not got a property in Sydney and am willing to buy a home rather than rent for my young family so as to gain equity for myself rather than not having any leverage for finance as in my current situation

I'm not exactly sure what you mean against turnover. If you have an investor you also will have either less owner equity or more debt. Either way I don't believe you are going to see the result your seeking and it wont make your financials look any better. I would encourage you to bite the bullet for 18 to 24 months while you pay down on your new trucks and alsao on your other accumulated debt and build up a savings with enough cash to cover the absolute worst case scenario for at least 30 days. Mean while I believe it is imperative to have a banking relationship with a small bank that you will be getting more and more confident as you continue. They will probably be willing to give you a open line of credit and possibly large enough to pay down debt. Stll, I strongly urge you to resist that urge to relax and enjoy your success just yet. If you do you will falling victim to the same difficulty more the 79% of all young business ace in there first 5 years. Good Luck and congrats on your success.

If you're looking to buy a home, then you should be able to use this property as security. Depending on the financial institution, you should be able to get as high as 100% financing. This is basically personal finance, with cash-flow from a business as the repayment source.

The biggest challenge is showing your income to meet the repayments. Make sure you have last year's financials done, interim financials and a cash-flow budget for the business.

I'm no longer doing commercial finance, but still have some contacts, who may be able to assist.

Most important questions......

1. Are you sure that the extra debt for the property purchase is not going to take up excess cash-flow and be detrimental to the business? Renting may not appeal to you, but you need to make sure that you're not taking on too high a debt load.

2. Can you hold out for another 6-12 months so you will then have 2 years full financials? This will make getting finance much easier.

3. Are you able to show a regular savings pattern with your new contracts in place? This may require the time noted in Q2, but will reduce the amount required and also make approval easier.

Contact me if you'd like further tips.