Rees Pritchard Pty. Limited can help you find the most competitive finance packages to suit your business. Importantly, if you have residential security we can generally obtain home loan rates on your borrowings.The types of business finance that we can help you with include:
Bank Bills
Bank bills are a flexible form of finance and are often used by borrowers with short-term or seasonal finance requirements. Bills are usually drawn for 30, 60, 90, 120 or 180 day terms, with the interest rate fixed for the term of the bill.
Business Credit Cards
Credit cards are ideal for small purchases and expenses in business. A credit card for your business provides flexibility and ease of use.OverdraftsOverdrafts are used to fund your business’ everyday requirements, assisting your liquidity. Overdrafts can be secured by the assets of your business, your commercial premises or to obtain a lower interest rate on your home. All your business’ trading requirements are operated out of the one account and there are no fixed loan repayments.
Cashflow Finance
Cashflow finance is designed to release funds into your business, secured by your debtors (accounts receivable) book.Your business’ borrowing ability is determined by the level of your accounts receivable, not by how much real estate security you have.It is often used by businesses as a replacement to overdraft funding.Your cashflow finance facility grows as your business does, providing your business with the cash it needs to succeed. There are different variations of cashflow finance and it is also known as debtor finance, invoice discounting or factoring.
Chattel Mortgage
A Chattel Mortgage Agreement can provide your business with an alternative method of funding for vehicle and plant & equipment acquisitions and is designed to optimise cash flow, while minimising the impact of GST.The Chattel Mortgage enables you to purchase the goods you need and acquire immediate ownership of the asset. Then you can get on with your day to day business without significant impact on your working capital.
Commercial Hire Purchase
The finance company retains ownership of the item until the business pays it off on a principal plus interest basis. The interest is tax deductible and, because it is implied owner of the item, the business can claim a tax deduction for depreciation. In cases where the equipment has high depreciation rate (e.g. computers) the taxation benefits in the early years of a commercial hire purchase agreement may be higher than those achievable by leasing.LeasingWith leasing your business obtains a tax deduction for the lease rental payments, but the finance company or bank providing the lease finance retains ownership of the item and is able to claim depreciation. At the end of the lease period, the business has the first opportunity to buy the item at its residual value. If it does not, and the item fetches less than the residual value on the open market, the business is liable for the shortfall.
Long Term Loans / Fully Drawn Advances
Long term loans and fully drawn advances are utilised for your business’ capital purchase requirements, including commercial property and large plant and equipment purchases.
Terms are dependant on the asset being purchased and can vary between 1 to 25 years. Principal and interest, or interest only repayments can be negotiated. Interest rates can be variable or fixed for terms up to 5 years – or a combination of both. Loans can be secured by commercial property, the assets of the business or residential properties.
Refinancing
The most common reasons for refinancing are:
- Better rates and fees available from alternative sources.
- Poor service from your current financier.
- Unwillingness of your current financier to provide you with the loan you require.
- Consolidation of all your loans into one.
If you would like more information please contact Steven Pritchard.
