Tag: commercial finance

Q4 – time to finalise vehicle and equipment acquisitions with cheaper commercial finance

Maximize Your Tax Deductions The fourth quarter of the financial year signals time to speak with Business Finance about cheaper commercial finance for vehicle and equipment acquisitions. Traditionally the last 3 months of the financial year is the time when many business owners assess their position and look to maximise tax deductions through purchases before 30 June. To be eligible as a tax deduction, assets may need to be operational in a business prior to that date. For some machinery and equipment time may need to be allowed for delivery, installation and commissioning. There are additional compelling reasons as to why moving now on essential acquisitions is even more important this year. Capitalise, Optimise, Maximise, Minimise Reasons to act now are driven by the opportunities to minimise interest payable on finance, capitalise on opportunities, optimise benefits and maximise tax deductions. A key reason is the interest rates outlook. While the latest inflation figures are seen by many as a reason... Read More Caret Right

Jobs and Skills Summit – outcomes, opportunities and options

The Jobs and Skills Summit delivered positive outcomes for some businesses while others may require finance to support their operation in the shorter term. As a result of many migrant workers, temporary visa holders and international students leaving Australia in the early stages of the pandemic and not yet returning, the domestic labour market has been extremely tight. Unemployment has hit a near record low of 3.4% and the result is intense pressure on many business, constrained capacity to produce and lower production and productivity. The labour shortage has been flagged as a contributor to inflation due to the supply limitations it creates. These are issues noted by the RBA in recent monthly statements. With many businesses facing major problems recruiting staff to fill roles to enable full production, owners and operators would be looking to the Jobs and Skills Summit to deliver solutions. Solutions are clearly required to address immediate staffing issues as well as better equip the country... Read More Caret Right

New Financial Year Commercial Finance Considerations

The start of the new financial year is a far more significant ‘new year’ for the business community than the start of the calendar year. 1 July means a lot more to business operators than 1 January, when many could possibly be relaxing on holidays. 1 July is a time to get seriously involved in many aspects of the business. 2021 has additional significance, due to ongoing risks and threats to operations presented by the coronavirus pandemic. While Australia has done extremely well in economic terms re the pandemic, ongoing outbreaks and snaps lockdowns are constant reminders of the lurking risks. Astute business owners will be taking time out mid-year to assess their finance requirements moving forward. Growing a business can involve investing and that involves sourcing cost-effective commercial finance. But not all business investments involve the purchase of equipment, plant or physical assets. There are non-tangible purchases to be made in order to affect business expansion. We explain the... Read More Caret Right

Commercial Finance: Preventative not just Curative

Business finance can be seen by many owners and operators primarily as a cure. When a business faces hardship, financial problems, snags in their plans, they look to taking out some form of a loan. The wide use of the term financial solutions, which yes we also use consistently, can be partly to blame. 'Solutions' conveys the impression that you only apply for finance when you have a problem. But that is really only one way to view business loans. Commercial finance can be designed and structured to work as a prevention for many scenarios. More than a back-stop or backup, it can be the intervention or tool that actually prevents that bad stuff and the associated problems from occurring. Let’s look at specific commercial finance products from that preventative point of view to illustrate our point and how business financing works with business owners to shore-up their operations with structured finance. Business Overdraft Many businesses operate continuously with a... Read More Caret Right

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Our Lenders

Trusted by 60+ lenders Australia-wide

Westpac
Liberty
Automotive Financial Services
Macquarie
Finance One
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.