Equipment finance: Are you getting a tax deduction for every $ you spend?

There are three common ways to finance machinery but only one will deliver a tax deduction for the full amount of the monthly payment. Commercial Hire Purchase (CHP) and Chattel Mortgage will typically only deliver a tax deduction of 55 cents to 65 cents for every $1 you spend in the monthly finance payments you make. To put this in more clear terms, when you finance $100,000 over a five year term you will spend around $115,000 including interest. Of that $115,000, you will typically only be able to claim … [Read more…]

Getting finance with your first machine

With many sectors experiencing boom times for work, we are seeing an increasing number of new businesses commencing. Sydney, especially in the civil & trade related areas is a great example. Sydney currently represents a once-in-a-lifetime opportunity for new companies to commence as there is such a significant amount of work available. We are seeing these new companies start in many forms. Whether it’s a valued employee being given an opportunity to buy a piece of machinery and dry hire that back to their employer while they are still working … [Read more…]

Equipment finance accessed as easily as fuel

Finance! An important fuel of industry, so is there a way to easily fill up whilst getting a good price at the bowser? In today’s business environment, the vast majority of companies live in a world where the prices that they charge for their goods and services is very much influenced by pricing pressure of the competitors in their market. Fuel prices is just one example and believe it or not, so is finance. Equipment and vehicle finance is a heavily contested space with a dozen or so banks and financiers … [Read more…]

Software finance – a way to gain the benefits of improved technology without the initial drain on cash

In a recent small business article, the statistics showed that 80% of business owners felt that there were significant operational efficiencies and economic gains to be had by implementing improved IT systems and software. Pushing hard against this is the significant cost for those systems (including customisation and implementation) and its potential drain on the much needed and protected working capital within these businesses, despite the fact that they acknowledge the immense medium to long term gains available. For the majority of small businesses, cash is king and the capital … [Read more…]

Equipment financing: bank or broker?

Some may say this is a time versus money equation but in reality it is not! If you can obtain the same interest rates (or better) on Equipment Financing through a broker then the answer is simple, use a broker!!! Time spent Your broker should handle the entire Equipment Financing process from start to finish with minimal input from you, which represents a significant amount of time saved compared to dealing with the banks. Convenience Your Equipment Finance Broker should always be available on mobile after hours (including weekends) and … [Read more…]

The Overdraft Alternative

In today’s business environment, access to cheap flexible cash is paramount. Money (Cash) is just another key component of business, similar to raw materials and labour. It should be accessed at the cheapest possible rate and with the greatest amount of limits available and with flexibility. Perhaps it is time for owners of small businesses to have a good look at the way they finance their day to day business activities. In the vast majority of cases, the following statements would be accurate for most privately owned businesses. Their present bank … [Read more…]

Why use a broker for your equipment finance?

This is a very valid question and often asked. It is interesting to note the statistics and the most telling statistic is that over 50% of small business (with a turnover up to $20 million) use Equipment Finance Brokers for a significant portion of their Equipment & Vehicle finance needs. Why would they do this? Having been in the industry for 30 years, I can tell you it’s a combination of a number of factors: Relationship Just as their clients are privately owned and operated businesses, so are the majority … [Read more…]

Accelerated Depreciation

Accelerated Depreciation, the hidden gold in the 2016 budget for companies with a turnover of up to $10million. (Provided they can get it through the Senate as Bill Shorten is threatening to block this component of the reform, so bring on the election!!) Although much publicity has surrounded the reclassification of small business which now extends to companies with a turnover of up to $10million and the ability of those businesses to claim 100% depreciation on assets purchased of less than $20,000, these are “small bikkies” compared to what is … [Read more…]

9 quick facts you need to know about equipment finance

After 25 years of financing equipment for capital intensive industries, we thought we would share a few facts which will assist business owners in getting this area right. 1) Interest rates can vary by as much as 1%, so it pays to shop around Unlike home loans, interest rates on equipment finance are very much open to the competition of a free market & as such can often be negotiated down by as much as 1% if sufficient competition is created between financiers so it pays to shop around. A saving … [Read more…]

Financing Tax Debt

With statistics saying that up to one third of small businesses under some form of ongoing Tax Debt with the ATO, the uncertainty of these arrangements and the issues they can potentially cause when companies apply for other finance with mainstream lenders, it is encouraging to see that a number of property financiers are now assisting companies in Tax Debt Finance. These property financiers are assisting with Tax Debt Loans through providing additional funds against residential and commercial properties at levels up to 75% of market value and at interest … [Read more…]