|
Finance, Home Loan & Mortgage Broker Business - Business Finance Options >>
X Inc. Finance has access to a wide range of business finance lenders means that through one finance broker, you can literally get an assessment on your business and an idea of who would fund your particular situation in a single, well informed meeting - at no cost. X Inc offers a range of assessment and service solutions. There are many different options with business finance and leasing. Essentially options boil down to variations of these types.
FDAs or Term Loans are where the full amount borrowed is advanced to the borrower on day one. These types of loans are generally over longer terms (up to 15 years) and may have fixed or variable rates of interest. Repayments may be "Interest Only", or "Principal and Interest".
Overdrafts are probably still the most common type of finance used by businesses. An overdraft is a line of credit attached to a cheque account which allows business to operate on a day-to-day basis. The use of an overdraft is referred to as "working capital". Overdrafts are charged at a variable rate of interest, with interest being calculated daily on the balance outstanding. The balance of an account with an overdraft facility should ideally fluctuate between debit and credit as cash outflows and inflows occur.
Essentially this facility offers:
There are different types of leases, but generally leasing is used for financing the purchase of assets like cars, telephony, computers, equipment, machinery etc. It is a popular form of financing as it saves spending the business' capital, but of course the borrower doesn't own the goods and in effect pays "rental" to the financier. The full lease payment is tax deductible if used 100% for business, but the value of the item cannot depreciate over time. A lease generally requires that a pre-agreed amount (balloon / residual) will be owing at the expiry of the term. For more specific information on leasing, click here.
Hire Purchase is similar to leasing except that the item is seen to be owned by the borrower. This means that only the interest payments made on the purchase are tax deductible. Depreciation is also allowed as a tax deduction. The interest rates on both hire purchase and lease are fixed for the term of the agreement.
If you're a successful wholesaler, manufacturer or service-based business who sells on credit terms, with debtor finance, you can borrow funds using the trade value of your debtors as collateral. This allows you to gain access to your accounts receivable prior to actually receiving the funds, maximising your business cash flow. To qualify for debtor finance, you'll usually need a minimum amount of annual turnover (usually in the hundreds of thousands range) and your business will need an established credit history. While this type of loan is harder to get than traditional loans, it may well be worth the effort if your company qualifies for one.
Inventory Finance is a new finance option, whereby the lender will pay your suppliers invoices for stock in advance, and you repay after you have received and sold your stock. The facility can be used to purchase stock ranging from raw materials to be used in manufacturing, through to finished products for wholesale or retail. This can be done without any requirement for real estate security and there is no need for the stock to be pre-sold. (The stock can be sourced from within Australia or imported.) Inventory Finance enables business growth and increased profits through an evergreen revolving line of credit for short-term stock financing. The facility enables you to purchase stock on extended payment terms that are aligned with your normal business trading cycle, from 30 to 120 days. It is a great finance solution for businesses whose financial needs cannot be met by traditional business lending facilities. Loans are typically available up to $3million and draw downs from $100k.
Lines of credit facilities let your business borrow money at competitive rates by using a variety of security options. An effective example is the 'Business Mortgage Loan' following.
A loan which is especially suitable for business people who have a residential property to use as security is a Business Mortgage Loan. By borrowing against your residential asset, you can keep your interest rate down and effectively operate in a similar fashion to a line of credit against your residential mortgage and if you wish, combine your working accounts (day to day transactions) and loan accounts into one.
Commercial Bills can be an excellent answer when you need a significant injection of cash - above $100,000. Normal terms are from seven to 180 days with a variable or fixed interest rate. There are two types of bills - Floating Rate Bills & Fixed Rate Bills. With Floating rates, the drawdown rate and the term to maturity of the bill are agreed at the time of the drawdown. The interest rate applicable is determined by the term of the bill. If the period is extended or rolled over, the interest rate may vary. With Fixed rate bills, the drawdown rate is fixed for the term of the facility and your interest rate remains constant for the term of the facility, which may include several rollovers. With variable rate bills, the interest rate is fixed for each period.
If you have difficulty showing documentation to demonstrate your income, or you have limited business financials, a low document or no document loan might be a solution for you. Many self employed business operators have difficulty substantiating income or producing full records of their income. Interest rate can be around the standard variable interest rate depending on the loan-to-value ratio, and in some instances these rates will step down after a period of on-time repayments.
With appropriate security, you can now get loans:
If you are looking at business finance, you have a couple of options when doing your research. First, a free professional assessment of your situation will allow you to promptly gain a reasonable understanding of your business finance options - including how you might achieve the best outcome for your needs, how long it might take and potential fees and charges. From there, if you want to proceed, X Inc. will help you put the paperwork together and proceed to negotiations with our panel of lenders for the most competitive arrangement possible. We use our buying power to source excellent business finance rates as well as realistic structures. In some cases we may be able to obtain workable finance approvals where you have previously been unsuccessful on your own.
Alternatively, you might wish to take advantage of our specialist Business Consulting service and build a thorough written analysis and report on your business options.
The home loan market is very competitive. There are literally thousands of home loan options to choose from and the fastest way to get to the best decision for you is to get assistance. Make an appointment or talk to a local mortgage broker before making a final decision.
Home Loan Costs | How Mortgage Brokers Work | The Best Home Loans | Business Finance Options | Finance Terms
 |
 |
 |
|
Loan Market secures in excess of $600 million in home loans each month. We represent every major residential bank and lender in Australia, along with a wide range of leasing and personal finance lenders, deposit bond providers and our own Economy Home Loans. If you are looking for home finance which is in your best interest, talk to us. |
X Inc specialise in high net worth home loans along with business finance and commercial loans. X Inc Finance brokers represent every major commercial and business bank and lender along with a number of specialist lenders. |
Nearly half of Australian home buyers now use a mortgage broker to find them the best home loan. And there are plenty of great deals around if you know where to look and who to ask. |
 |
Home Loans Australia
| X Inc Media Centre | Mortgage Brokers
Loan Market | Home Loan Calculators | First Home Buyers | Borrowing Power
Loan Market New Zealand | realestate.com.au Home Loans | X Inc Finance Brokers | Media
Ray White Real Estate - Search for Property in Australia
© Xinc. Financial Services P/L ABN 80822191403