Many mortgage brokers can help with your home loan and your business loan. There are several types of commercial and asset finance, so make sure you know the differences. Then you can decide which one will suit you. What is commercial finance? Commercial finance is an umbrella term for different kinds of business loans. They’re designed to help manage your capital and cash flow. Types of commercial finance Business overdraft: Your financial institution allows you to overdraw your existing business account up to an approved limit. You can only access the overdraft after your own funds have been used. The lender charges interest on the overdrawn amount. Businesses often use overdrafts as small loans, usually to cover cash flow gaps. Line of credit: A long-term arrangement between a business and a lender, where the business can access funds up to an approved limit. The business may borrow all or part of the […]
As a business owner, it’s likely you have no shortage of competing demands on your capital. In your quest for growth, you might want to hire additional staff, move to bigger premises, increase production capacity, diversify your product range or spend more on marketing. Using traditional loans or cash to pay for new equipment and vehicles can put a strain on your cash flow and tie up funds that could be used to help your goal of growing your business. Asset finance can be a more economical option. It can allow you to obtain the assets you need to expand without incurring the high upfront costs associated with buying vehicles and equipment. Instead of acquiring an asset outright, asset financing allows you to spread the expense into more manageable, monthly payments over an agreed term. Asset finance explained There are two main types of asset finance: finance leases, also known […]
13 NovAre you data smart?
We are in the age of data. Data is the ‘new oil’ – able to power new revenue streams and improve efficiencies in existing ones. With the relentless rise of both the amount of data and our tools to process it and turn it into actionable insights, it is up to all of us to get the benefit or be left behind. With new technologies from giants like Amazon, Microsoft and IBM that combine data with ‘deep learning’ to create real insights, the challenge now is what to do with those insights. The property industry has been slow in using data effectively. There are isolated pockets where data is used to acquire customers, such as listing presentations used by real estate agents or manage mortgage risk using credit and property valuations data. In general, though, as an industry, we have been poor at execution and slow to change. The opportunities […]
Your small business finance or commercial finance options include: Business loans Commercial loans Lines of credit Home equity loans Franchise funding Venture capital How much money does your business need? A lot of small businesses fail not because they’re offering a poor product but because they run out of cash. How much money do you need for your business? Not just to pay for set-up costs but to cover your living expenses while you get established? Don’t even think about going into business until you’ve done a detailed business plan and cash flow projection. Otherwise you’re planning to fail. Business finance vs commercial finance? Both business finance and commercial finance are generally secured by either commercial or residential property. However, business finance is probably more associated with small business or SMEs (Small to Medium Enterprises). Commercial finance tends to relate more to the financing of commercial property. Business loans Business […]
A dramatic increase in the number of lenders has highlighted the need for greater research and consideration, or ‘due diligence’, when searching and applying for a loan. The act of purchasing a property, commonly requiring the production of significant personal information, coupled with the commitment of large sums of money, can be stressful. And now, with a wide variety of new lenders entering the marketplace, confidently choosing a lender you are comfortable with can feel downright overwhelming. Fortunately, there are steps you can take to help you make the right choice and reduce your risk of misfortune. Trust your gut and be wary of behaviour or hints that may suggest something isn’t quite right Your first step should be to speak to a mortgage broker who is a member of the Mortgage and Finance Association of Australia (MFAA). The MFAA maintains high ethical standards for its brokers and ensures its […]