Loans for advisory fees and expenses for engaging consultants to assist with regulation, red tape and compliance are available with unsecured commercial credit. Many sectors are subject to extensive and detailed regulation and compliance. Individual businesses can face complex red tape for specific projects, installations, and developments. To meet the challenges, many operators need to engage the services of professionals in key areas to advise on strategy and/or prepare documentation and submissions and/or support their own team.
The fees charged by many specialist consultants can be significant and the cost a major expense for the business. But the outcomes of not engaging this specialist expertise may be non-compliance and even more costly penalties and impacts on operations and growth.
Financing these business costs can present a workable, viable alternative to using cash flow for many operators. Businesses that may regularly need to use external advisory firms can include the hospitality sector on liquor licensing and other applications, the transport sector when new vehicle compliance rules are introduced, the medical sector with new procedures and pharmaceuticals, manufacturers getting new products approved for sale, and property development and construction with development application submissions.
Businesses of all types and sizes may also need to engage specialist accountants to advise on changes to tax rulings, ATO rulings, and when new government policies are introduced which impact their operations.
An area where many businesses are currently requiring expert advisors is in the area of tariffs and trade as a result of the new US tariff policies. Exporters may also face complex rulings internationally regarding meeting the environmentally acceptable packaging and other regulations imposed by some countries.
The requirements can be diverse and extensive, and the expenditure one-offs or ongoing. We provide solutions for all options to support businesses meet compliance and affordably navigate their sector's red tape.
Loans for Advisory Fees – Overview
Finance for consultants and advisors is a general description for a line of credit or loan for a commercial entity to fund expenses for work commissioned from an external advisory firm. The specifics of the work do not impact the loan itself. It may be fees for providing advice only, for carrying out work for the business, and/or representing the business to authorities, departments in both Australian and overseas governments.
The work itself could be preparing documentation such as submissions, applications and reports for a relevant government or other department. It may be advising management on procedures and processes required to meet compliance and regulation.
Funds may also be required for the cost of license and application fees where those costs are significant.
Credit Facilities for Loans for Advisory Fees
Finance for the expenses incurred in engaging external advisors etc would be considered a general business expense which would not be suitable as collateral for a loan. Financing would need to be provided with an unsecured commercial credit facility.
Businesses have several choices with unsecured business loans. Primarily these are an Unsecured Business Loan, a small commercial loan, or a Lender Overdraft. None of these facilities require the purpose of the funding to be used as loan collateral and provide businesses with a flexible and versatile funding facility.
The decision as to which is most suitable for the purpose may be determined by the amount required and the preferred repayment timeframe. A Lender Overdraft or Line of Credit may be established over a short term or as an ongoing credit facility. These facilities allow the business use of funds as required, the ability to reduce the Overdraft, ie pay down the debt, when cash flow permits. Interest is only charged on the amount of the Overdraft funds used each month. Lender fees apply with these fees and interest tax deductible.
Interest rates on Lender Overdrafts are at a variable rate. Making them subject to changes when the RBA changes the cash rate. Rates are similar on both unsecured options. Estimates can be calculated using our Finance Calculator.
Unsecured Business Loans are more formal arrangements for a fixed funding amount with repayments scheduled monthly over a fixed term. Our brokers negotiate terms and rates to best meet the individual business’ requirements. Interest and lender fees are deductible. Unsecured loan rates may be fixed or variable.
Eligibility for Loans for Advisory Fees and Costs
All commercial entities may be eligible for approval for finance to fund the costs of external advisors, regulation and compliance. Finance applications require documentation on the business’ financials, and the credit history is checked.
The finance approved for an unsecured commercial loan will depend on the specifics of an individual application. Rates and loan conditions can also vary for individual businesses. Our brokers work with each business to source and tailor a solution that facilities affordable compliance using their choice of advisory services.
To discuss your options for loans for advisory fees, speak with one of our expert commercial finance brokers on Business.Finance on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS
