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Short and Long Term Commercial Loans Solutions

. 5 min read
Your Path to Business Growth: Exploring Commercial Loans Solutions
Business owners may have identified the need for finance to support their operation but may not be fully across the range of commercial loans solutions available to them. Identifying the need is a first step towards achieving a workable outcome and achieving objectives. The next stage is possibly more technical in identifying which particular commercial loan will best work towards achieving the objective. That decision can be crucial in effectiveness as well as in the costs. The decision around which loan type is particularly highlighted in regard to short, medium, long term or an ongoing solution. Selecting the appropriate finance product can result in not only in a better outcome, but also possibly less interest payable and hence a reduced impost on business expenses. For example, opting for a long tem finance solution may lock the business into interest charges and repayments over an extended period, where possibly a shorter term option may be better suited. An option which may... Read More Caret Right
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Refinancing for Small Business Operators as Rates Rise

. 5 min read
The Small Business Dynamo: Meet the Operator
With lending interest rates increasing with RBA rate hikes refinancing for small business can be achieved with workable terms through Business Finance Aust. There can be a perception that small businesses are left worse off than larger enterprises when it comes to finance. That due to their size they will automatically be offered say a higher interest rate or tougher finance conditions. That may be seen to apply to both new finance and when seeking refinance. But this perception is not always the reality. Sure, if the small business is just starting up, then yes, it can be expected that they may be seen as a higher risk by lenders and as such attract a higher rate and/or tougher conditions for their loans. In these situations, we offer Low Doc and No Doc business finance. But if the small business has been operating for a reasonable time period, has a strong finance application and a good credit rating, they can... Read More Caret Right
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Economic Outlook Provides Intel for Business Finance Planning

. 5 min read
Leveraging Economic Insights for Strategic Business Finance Planning
Planning business acquisitions with finance can be assisted by utilising information through sources such as the RBA and ABS and using professional services such as Business Finance Australia to secure cost-effective loans. The need for assets such as equipment, plant and machinery can arise at any time in the business cycle. Sometimes the need is urgent and immediate while in other cases, the business may schedule longer-term strategies over several years. When it comes to making decisions around moving on the investment and how to best structure finance to work through the upcoming economic conditions, additional intel can be invaluable. The ABS is a good source of data on a whole range of economic activities. In regard to finance, knowing possibly when interest rates may rise or fall, can be important to planning acquisitions with the most cost-effective loans. To assist businesses in this regard, information and outlooks provided by the Reserve Bank of Australia are worth reviewing. The RBA... Read More Caret Right
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Bad Credit Finance Options as Rates Rise

. 5 min read
Maximize Resilience: A Guide to Bad Credit Finance Options
Businesses requiring bad credit finance in the current rising rate climate can seek assistance through specialist business finance lenders to source loans. The increasing rate climate and soaring inflation is placing cost pressures on many businesses. But for those in bad credit situations the prospects can be even more dire and concerning. It is widely accepted that interest rates offered on bad credit business finance would be higher than those for businesses with good credit ratings. Inflation is the key driver of the RBA’s rate decisions over recent months and with inflation rising by another 1.8% in the June quarter to 6.1%, more rises are certain. While finance rates were coming off a low base having enjoyed the record low of 0.1% cash rate since November 2020, for bad credit finance, the rate increases are on top of a higher base. A cost which the business must absorb into operating costs or pass on to customers with higher prices. Options which... Read More Caret Right
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Cost-effective Business Vehicle Finance to improve productivity on new utes and commercial van purchases

. 6 min read
Expected productivity improvements from new work vehicles can be enhanced with cost-effective business vehicle finance at cheaper interest rates. The expectation when acquiring new work vehicles such as commercial vans, light duty trucks and utes is that greater efficiencies and performance will be realised along with improved productivity to result in increased profitability. But where the finance to acquire these vehicles is not workable for the business, is secured at a higher rate than it could have been, or is not structured to suit specific objectives, those expectations may not be realised. The interest rate is a major component of vehicle finance and with the current scenario of the RBA raising rates, many business operators may have put purchase decisions on hold. But for others, ageing vehicles may make those buying decisions for them. All machinery, include vans and utes come to a time when their best days are behind them and they can become more of a liability than an... Read More Caret Right
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Latest data on construction activity may create need for business finance support

. 5 min read
The August construction activity report reveals another drop in some sectors which may create a need for some operators to require business finance support. The data reveals variations in some sectors that may indicate varying prospects for different operators. Prospects which may require either general finance to support the business or asset acquisition finance to support growth. The Ai Group reports the construction activity and the August results show a third month of contraction. However, the rate of that contraction is lower than for the previous month. In addition there are increases in new orders in some areas of the market. For business owners that refer to these reports for forecasts and possible indicators for their planning purposes, the August report may have mixed outcomes. Those operating in sectors which have continued to show a fall may seek support by way of restructuring existing loans through refinancing and other solutions. Those in sectors that reveal a level of improvement may... Read More Caret Right
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Sole Trader Business Finance at Better Interest Rates

. 6 min read
Those in the process of planning to work for themselves in a one person operation, sourcing sole trader business finance at the cheapest possible interest rates is achievable through the right lenders. The dream or even the definite career plan for many aspirational individuals is to work for themselves. To, at some point in their working life or career, to make the transition from employee to boss. This may mean setting up as a sole trader in any number of fields such as:- contracting in the business services including tech activities, contract delivery work, construction and trade work, turning a hobby into the main income stream, establishing a beauty business, owner-driver and many others. Many of these types of businesses will require the purchase of some form of equipment and/or general financial support at least in the initial phases. Finance may actually be needed to establish the operation with the purchase of a van, truck, IT equipment, tools and possibly... Read More Caret Right
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June Unemployment Rate – red flag for rate hikes & business operators

. 5 min read
The release of the June 2022 unemployment rate is a sign to business operators of ongoing issues in the labour market and further justification for more and larger interest rate hikes. The Australian Bureau of Statistics, the ABS, compiles and releases the employment figures and provides detailed data on the breakdown of the statistics. In the June reporting period the unemployment rate fell markedly and quite unexpectedly by many, by 0.4% from 3.9% to 3.5%. The June figure represented the lowest Australia unemployment in 50 years. Low rates of unemployment are a major economic goal for governments and something for them to celebrate as confirmation of the success of policy decisions. But in the midst of the economic conditions being faced in Australia, especially for business operators, these latest figures pose cause for concern for many. It increases the probability of further rate rises and signals continuing shortages in the labour market. Further rate rises are already expected, the RBA... Read More Caret Right
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Affordable Business Overdraft in a Rising Cost Climate

. 5 min read
2022 is certainly presenting quite a different set of economic and business circumstances to the previous two years. While the pandemic-related issues of 2020 and 2021 presented business owners with plenty to contend with, the government stimulus measures and record low interest rates were of great assistance to many. With both those supports now not available and inflation and operating costs surging, businesses need to look to other means. Business Overdraft is a traditional and very popular form of business finance which can be used to cover short-term or recurring shortfalls in income and cash flow. Shortfalls and pressure on cash flow is currently being felt and will increase for many operators as prices on goods and services including materials and supplies increase and due to a number of other decisions. We cover off on current cost drivers, how an overdraft may assist, the options in sourcing a Business Overdraft and what other options may also work for an individual... Read More Caret Right
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Restructuring Business Finance for FY21/22

. 6 min read
The end of one financial year and the start of the next can be an exceptionally busy time for most business owners and operators. You could be engaged in your own EOFY sales to generate additional income and move stock. Most will be focussed on tax issues to ensure all boxes are ticked and affairs in order before 30 June. Some will be seeking a discount at the EOFY sale events for motor vehicles and equipment. And this time of year often coincides with school holidays which can place additional demands on-time schedules. But amidst all that you have to do, it is also an appropriate time to take time to reflect on how you could set up your business for improved performance in the new financial year. Consider what tweaks you can make here and there to realise savings and generate additional income. One area worth taking a close look at is in regard to existing business loans and... Read More Caret Right

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Our Lenders

Trusted by 60+ lenders Australia-wide

Westpac
Liberty
Automotive Financial Services
Macquarie
Finance One
Commonwealth Bank
Pepper Money
Morris
National Australia Bank
RACV
Get Capital
Prospa
Grow
Selfco Leasing
Scottish Pacific

FAQs
Business Finance FAQs

Yes, subject to the specific guidelines of individual brokers. Many brokers will offer services to all types and sizes of commercial set-ups while some may specialise in working for only some types of operations. Some brokers may also specialise in certain industry sectors or with specific financial products.

Commercial loans all offer tax deductible elements. These vary with the different products including Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. Interest payments are all tax deductible. With Leasing and Rent to Own the repayments are tax deductible. With Chattel Mortgage a tax benefit is realised through depreciation.

The interest rates vary with the different funding products. Rates will change across the market with changes in the cash rate by the Reserve Bank. Rates will differ depending on the individual application and credit rating. Rates can vary for equipment in different industries. Credit providers will advertise their best rate for good credit rating applicants.

Yes. Having a current ABN is an essential requirement to be eligible for commercial funding products. Additional documentation on the financials of the operation and other details will be requested as part of the application process. If not all documents are available, ABN holders may seek No Doc or Low Doc options.

The same products apply across all industries and types of operations. But the funding offers can vary across different industry sectors for some credit products. This may occur with equipment and machinery in particular. Interest rates on equipment funding may be different from one industry to another. This may be due to risk assessment of the sector or the individual guidelines of a particular lender. Vehicle funding interest rates would be less subject to industry variations.

The type of credit product best suited to a commercial enterprise will depend on:- accounting method used; balance sheet approach; approach to tax; and financial objectives. The most popular options are Vehicle Leasing and Chattel Mortgage. Operators are advised to discuss choice of product for suitability with their accountant.

Cash flow support may be sought through an Overdraft Facility or a Secured or Unsecured Funding Option. All may be sought to support an operation with ongoing expenses to support cash flow.

New start-ups with an ABN are eligible to apply for all types of commercial loans. As most will not have all the documents for the application, they may seek No Doc and Low Doc options through specialist providers and brokers. Funding can be sought for vehicles, trucks, equipment and other purposes.

To be eligible for commercial loan, applicants must hold an ABN and identification are essential requirements. GST registration is not essential. A selection of documentation, docs, is requested. This may include tax returns, BAS returns, trading figures, bank statements, balance sheets and annual accounts.

Refinancing may be considered for many types of commercial funding arrangements. These may include asset acquisition funding, overdrafts as well as general secured and unsecured arrangements. Refinancing may be sought for a range of purposes including to achieve a lower interest rate, restructure repayment schedule or as part of a business-wide review of financials.

In general terms, any equipment which is for use in a commercial operation may be eligible for commercial funding. The ATO sets out eligibility for tax deductible asset acquisitions. The type of equipment will vary depending on the industry. It can include heavy machinery and equipment right through to general equipment such as computers, IT and photocopiers. Lenders may have their own guidelines as to what equipment they will fund.

Commercial financing is available through major and second tier banks and a wide range of non-bank lenders. Brokers offer services to assist operators to source funding to suit their requirements.

Rates are offered following an assessment of the application. The rate will be based on the credit rating of the applicant, the amount being applied for, aspects of the goods or purpose of the funding and other aspects. Rates offered vary across the lending market and are subject to the individual guidelines of the credit provider. Changes to monetary policy by the Reserve Bank can impact the interest rates market.

Features and structure of commercial loans should be assessed in relation to the accounting methods and objectives of the company. Consulting with an accountant can assist with this process. The best option is the one that suits the individual objectives and goals.

No. ABN holders and sole traders that are not incorporated are still eligible for commercial loans. Some lenders will have guidelines around application approvals. Small enterprises may seek a credit provider that accepts applications from their type of operation or seek assistance from a broker.

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