Fitout Finance Trap No. 2 - Not Aligned to Cashflow!
Fitout Finance Trap No. 3 - The Deposit
When you contract someone to undertake the fitout of your business premises, you will normally be asked to place a deposit.
Depending on the size of the fitout the amount involved can be significant which can place a strain on cashflow.
However to avoid this, you can arrange for the deposit to be reimbursed as part of the finance package.
Fitout Finance Trap No. 4 - The Wrong Product
Quickly signing up to finance to get the process underway and not ensuring you are using the right product, is another Fitout Finance trap to avoid!
Choosing the right product is important from an ownership and critically, a tax perspective.
Also, you may find that if you choose the wrong product, you cannot claim back the GST.
Fitout Finance Trap No. 5 - Supplier Finance
Fitout Finance Trap No. 6 - Approaching Existing Lenders
Fitout and Asset Finance provide business owners with the opportunity to build relationships and a track record external to their existing primary Financiers.
Being over exposed to your primary Financier, (having “all your eggs in one basket”), is another Fitout Finance Trap to avoid.
Building external finance relationships can provide a “safety net” or fallback position if your primary Lender does not deliver.
Importantly, it can also avoid linking security that may be held by the primary Financier, to the Fitout Finance.