Business, Equipment & Home Finance for SMEs
The Balloon Payment (or Residual) is the final payment needed to finalise an equipment or motor vehicle finance contract. Business owners and individuals often prefer to include a Balloon Payment in their finance contract to reduce their monthly repayments. Balloon Payments bear interest but are not amortised over the term of the facility They approximate [...]
The First Home Super Saver Scheme was originally introduced in 2017, updated in 2019 and then extended further in the 2021 Federal Government Budget. The Scheme is designed to assist first home buyers to build a deposit for a home by taking advantage of the tax concessions available to monies held in superannuation. Why the [...]
If you are thinking about leasing business equipment, it is important to understand the options available. To help you make an informed decision I’ve prepared the following checklist of important issues to consider. Leasing Business Equipment - The Business Case A key motivation for leasing business equipment is often its potential to generate income or [...]
Interest Only Loans have been favoured by homebuyers and property investors for many years as way of preserving cash flow. (If you are not paying off principal, then you have more cash available for other purposes). For property investors, not paying principal also has the advantage of higher interest deductions and as the debt is [...]
If you are borrowing money for a new home, renovations, investment, or a car, it is important to understand what the true cost of the finance - the comparison interest rate. A recent Survey undertaken by Loan Market revealed that up to 40% of borrowers didn't know what a comparison interest rate was! Why the [...]
With Lenders rigorously assessing Home Finance applications, two common finance traps to be mindful of that may impact the amount you can borrow are: Credit Cards Use of popular Payday Schemes Even if you have no debt owing at the time of application, both credit cards and using payday schemes can limit your borrowing capacity. [...]
The biggest issue which results in a frustrating, lengthy and time-consuming loan approval process, is information required by Lenders to process loan requests not being provided upfront by applicants and/or in an incorrect format. Information Required by Banks - Treat Requests Like a Tennis Match To facilitate a faster turnaround when the Lender requests information, [...]
The experience for many business owners is that it is possible to be profitable but not have enough cash. Logic says that if you were making a profit, you should have enough cash to pay your bills. However, this is not always the case! How can a business be profitable and not have enough cash? [...]
While the cost of finance is important, ensuring you have the right business finance structure is even more critical. When a finance structure is incorrect, it can have serious implications for a business. Business operations can be impaired and relationships with Lenders strained, not to mention how time consuming, and costly, it can be to [...]
When applying for a business loan, there are steps you can take to avoid unnecessary delays and frustration. Whilst economists are painting an optimistic outlook for the Australian economy, Lenders are adopting a more cautious approach, seeking detailed information and taking longer to approve borrowings. Against this background, there are steps business owners can take [...]
