Business Lender Sydney

Sparrow Loans offers property and business loans ranging from $200,000 to $2.5M for eligible companies in Sydney, Melbourne & Brisbane. Our loans give you the flexibility to leverage your property assets for business or investment purposes.

We’ve helped many businesses by releasing equity in their property for cash flow, investment in equipment, tax debts, working capital purchase inventory, site acquisitions, non-structural property improvements and more.

We can settle your property and business loans within 2 weeks. We understand that your business needs the funds, so we will expedite this process as much as we can.

No, we don’t; we can only lend to companies and corporate trustees. And, these loans must predominantly be for business purposes.

The fees for our loans include an establishment fee between 1.5% and 2.2% of the loan amount. There are also valuation and legal fees involved however these are third party costs, and we will advise you of these fees upfront so there are no surprises. Unlike some other private funders who will charge application fees, due diligence fees, commitment fees and establishment fees, Sparrow Loans is unique; you only pay the establishment fee on settlement.

Our LVR is dependent on what type of property security is involved. We can lend up to 70% for residential and commercial properties. We can also lend up to 65% for DA approved sites. Most private lenders will only lend up to 65% on commercial property, and up to 60% on DA approved sites, making Sparrow Loans more competitive.

It ultimately depends on the exit strategy of the business loan. If the exit strategy involves a property security sale, we don’t worry about serviceability as the loan and interest will be paid on exit. If the exit strategy is not airtight, we look at the business’s free cash flow and liabilities, which means we review a 6-month trading statement, your past 2 BAS, and your statement of position (your assets and liabilities).

The rates start from 6.5% for most businesses. The average rate works out between 8% and 9%, but we will discuss this with you at our first free consultation.

Our loan terms are up to 12 months, with the capacity to roll over for an additional 12 months. Our minimum term is as little as 1 month.

The most critical components of a loan assessment are the LVR and the borrower’s capacity to repay the loan on time.

The best thing to do would be to tell us as soon as possible before the due date to explore other options to restructure the deal. Or we might place it with another funder that can support the loan.

Once your loan application is received, we’ll need to verify your details and perform any credit checks necessary. We’ll let you know about the term of the loan, and monthly interest rates. Then, once your loan application is approved, your loan documentation has been signed and returned, your solicitor will assist in booking settlement – this is when we disburse the funds to the outgoing lender in the case of a refinance, or to the vendor in the case of a property settlement, or even to your solicitor’s trust account if releasing equity from an unencumbered property. If you’d like to know more, you can book a no-obligation meeting with us through the website!

We provide secured property backed business loans from $200,000 to $2,500,000.