buying tips

buying tips

Easing cash flow with Insurance Premium Finance

. 5 min read
Managing Insurance Costs: The Benefits of Premium Finance
Business Finance assists businesses facing large annual insurance premiums with Insurance Premium Finance to manage expenses and ease pressure on cash flow. A finance product which may not be widely known about but can be extremely helpful for businesses as premiums on some policies rise and when businesses are looking to better manage large outgoings. The need for Insurance Premium Funding can arise due to a number of circumstances. For example, the last few years have provide great opportunities for businesses to upgrade assets with plant, machinery and equipment acquisitions. This emanated from the historic low interest rates which were available from November 2020 to May 2022 and the generous tax measures. Measures such as Instant Asset Write-off and temporary full expensing which were introduced as part of stimulus measures and provided eligible businesses with the opportunity to write-off the value of new assets in the year of acquisitions. Many businesses seized on these opportunities to upgrade and replace vehicles... Read More Caret Right
buying tips

When rates rise, will low doc finance conditions tighten?

. 6 min read
Entrepreneurial Empowerment: Navigating Low Doc Business Finance
With interest rates currently being on the rise businesses requiring low doc finance may be concerned around any tightening of conditions with higher rates. This is a specialist type of business finance, not as widely available as finance for fully documented applications and can include special conditions as requested by individual lenders. Cost-effective rates can apply but all applications are assessed individually. It can be, in simple terms, harder to get than finance for established businesses. Due to these specific features and factors, it would be only natural that in the light of the recent and ongoing RBA rate hikes, that some businesses requiring this type of finance may be concerned. Concern may exit can exist around whether this type of finance is harder to get, will attract premium interest rates and/or whether tighter and restrictive conditions may apply. We cover off on what is involved with Low Doc Business Finance, what loans are available, what business should and may... Read More Caret Right
buying tips

Tradies Health Month a Time to Ease Pressures of Business Finance

. 5 min read
August each year for the past 10 years has been designate Tradies National Health Month by Australia’s leading association for physiotherapists – Australian Physiotherapy Association (APA).  The initiative was started to provide an opportunity for workers in many sectors, but particularly the trades, to reassess their wellbeing, both mental and physical. These are matters that often get put aside by many people. Business finance issues can be a source of mental health problems and Jade Finance urge operators to consider ways to ease the pressure in Tradies Health Month. Not only business owners in the trade or building, we’re making the call-out to all business owners. The focus on health during August represents a great opportunity to assess issues and concerns around business finances and seek solutions to improve the situation and avoid potential health worries. In addition to what could be expected under normal operating conditions, the pandemic has created a new set of challenges which continue to be... Read More Caret Right
buying tips

When finance offer differs from finance calculator result

. 5 min read
There are a number of factors to consider when the finance offer received from a bank or lender differs from the result obtained by using a finance calculator. Calculators are a great resource for businesses to utilise ahead of making major equipment and vehicle acquisitions and taking our business loans and overdrafts. They allow for quick and easy calculation of repayment estimates and enable businesses to plan how they may like their finance structured. Using a finance calculator is extremely for preparing budgets, scheduling asset acquisitions, comparing possible repayments on different priced equipment models and generally assisting with the purchase and investment process. But key to effective use of a calculator is the proper use of the resource and having a full understanding of what these finance tools can and cannot do. A key issue to realise is that there can be a difference between the finance offer received – in terms of interest rate, repayments and even loan terms,... Read More Caret Right
buying tips

Financing for Business as Interest Rates Rise

. 5 min read
After an extended period of record low interest rates through 2020 and 2021, the Australian economy is now experiencing the first rate rises in around 12 years. A scenario which will be something very new to tackle for many businesses seeking financing. As the RBA undertakes a process of normalising monetary policy and raising the cash rate businesses need to prioritise seeking the cheapest financing rates to ensure cost-effective and workable business finance is achieved. To achieve this objective, business operators can address the key factors which contribute to being offered the best interest rates. In addition, a range of options in regard to lender, finance product and finance structure can be considered to ensure the overall financing is as affordable as possible. RBA Scenario The RBA  held the cash rate at the historic 0.1% since November 2020 and consistently repeated its position as remaining patient and waiting for inflation and unemployment to be in target range to trigger a... Read More Caret Right
buying tips

Simple Steps to Estimating Your Business Finance Repayments

. 6 min read
To take on business finance to acquire vehicles, trucks and equipment, plant and machinery is a major consideration. Many business operators may need to prepare financial projections and cash flow forecasts to plan the acquisitions in their operational expenditure. Key personnel may need to prepare budgets and proposals detailing ROI and expected productivity and performance outcomes from the acquisition for senior management and board approval. Most business owners, especially SMEs and sole traders need to work out if they can afford the purchase. Differing purposes and objectives but with one common thread – buyers primarily need and want to know what their finance repayments maybe when acquiring major assets. They need to be able to quickly and easily convert the purchase price of the equipment or vehicle into monthly repayments for inclusion in planning documents or to rule goods in or out of their affordability range. Read more here. That process is made easy and without any high-level maths or... Read More Caret Right
buying tips

Options for hard to get finance: New Biz, Small Biz, Micro Biz

. 5 min read
There are several types of businesses and categories of loan applicants that can face challenges when sourcing low rate business loans requirements. Specifically, new businesses which are in the process of setting up or have only been operating for a relatively short period; small and micro businesses regardless of how long they have been in operation; and businesses that have a poor credit history and hence a bad credit score. The challenges faced by these groups are widely known and can be a deterrent to businesses even applying for loans. Even the faintest prospect of being rejected for finance by a bank can be enough of a disincentive for businesses to completely put off applying. They dismiss relying on finance and instead either seek out alternative solutions to business needs or just proceed ‘as is’ and forego opportunities to grow and expand. With the deregulation of the Australian financial sector, a large number of non-bank lenders have entered the lending... Read More Caret Right
buying tips

Is now a good time to buy?

. 6 min read
The decision to acquire new business assets including cars, trucks, machinery and equipment involves a whole range of steps, considerations and evaluations. Which particular make and model to the buyer? Which model will deliver the best outcome for the business? Which finance product to use? Pay a deposit or borrow the full amount? Price of the asset and the finance? An extra consideration is getting the timing spot on. Deciding when is the right time to invest in new business assets should also be a priority. Numerous aspects can be evaluated in this stage of the buying process and we have collated a range of factors and current data for your consideration. EOFY Countdown We’re now into the home stretch or sprint to the end of the current financial year. 30 June is a key date in the business calendar for many reasons but rather than focus on that date, the weeks leading up are more critical. That is time... Read More Caret Right
buying tips

Accounting for Business Finance

. 6 min read
Most business owners engage the services of an accountant to handle their annual accounts, tax obligations and other regulatory commitments so they can get on with doing what they enjoy, what they're trained for and what brings in the money - running their business. While accounting is a specialist profession and many aspects best left to the experts, it can be extremely worthwhile for business owners and decision-makers to have a good understanding of the basics. This is particularly significant when it comes to deciding which type of business loan is best suited to an organisation. Different commercial finance facilities are suited to the different accounting methods. Understanding why and how the finance type selected can work to deliver taxation and other benefits to your business may be extremely useful and advantageous in managing your business. To assist you to build your knowledge bank, we’re covering off the basics of the different accounting methods and how each works with the... 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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