Business finance is a complex area where I have experience dealing with a range of businesses from top resorts and reef boat operators in Far North Queensland, medical practitioners (GP’s, specialists, allied health professionals etc), professionals such as lawyers and accountants and international manufacturing businesses through to ‘mum and dad’ and single operator businesses such as mechanics, builders and equipment hire companies.
Over the years assisting small and medium sized businesses with their finance most require finance for the following reasons:
Start-up/purchase of business – When business owners look to purchase a business or set one up from scratch they will usually seek a business loan to assist financing the purchase/start-up. These loans are preferably secured (usually by the Director’s residential property) but can also be unsecured or secured against other assets. Some lenders allow for the business being purchased to secure a loan;
Business Growth (Working Capital) – A good, profitable business can sometimes fail if it cannot get access to funding to assist with rapid growth. As well as the operational issues that arise in a business when it is growing, business owners find it difficult to collect their cash as fast as they have to pay their creditors such as suppliers, their employees and the Australian Tax Office. Working capital facilities such as overdrafts and debtor finance facilities need to be set at an appropriate level to bridge this gap so that the business owner can focus on doing what they do best – operating the business. Again, these facilities can be secured or unsecured depending upon the business and lender;
Purchase of Equipment (Asset Finance) –Many businesses finance their equipment and car purchases using asset finance. This is where the asset being purchased, for example a car, is used as security for a loan to purchase the asset. This does two things – firstly, it maintains current cash flow as generally, depending on the type of asset, 100% leverage can be achieved. Secondly, if the asset is securing the loan you generally do not have to use other forms of security such as a residential property to secure the loan – in effect there is more liquidity retained in the business or owners personal finances;
Purchase Commercial Premises – Rather than renting, a business owner will often purchase the commercial premises that they operate from either in the business entity, a self-managed super fund or in an entity specially set up to look after the asset. Benefits of owning their own premises include a certainty of continuity at the site (rather than being dictated to by the landlord at the end of the lease), more flexibility to adapt the premises and it can also be a wealth creation strategy.
We take the time to thoroughly understand your business and its requirements not just now but in the future. Your goals and objectives are important to us and our aim is to be part of your Trusted Advisor team just like your accountant or lawyer. And, just as importantly, we can ensure your staff are well looked after with our home lending service.
If you have existing finance that hasn’t been reviewed in a while or you have the requirement for new finance coming up please get in contact – we’d love to find out more about your business and using our wide panel of lenders come up with the right business solution to move your business forward.