We can help you access additional funds to stay on top of your ATO obligations!

Just a reminder that by 28 February most small businesses need to lodge and pay BAS and super guarantee contributions.

With the ATO taking a hard line on missed deadlines, it’s more important than ever for small businesses to plan how they will make their repayments on time to avoid potential consequences such as ATO penalties or a bad credit rating.

Unsecured Business Loans

The good news is we offer small business loans that could help you stay on top of your ATO obligations when you don’t have the cash on hand to cover requirements.

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

>> GET STARTED – To apply visit xpressbusinessloans.com.au

Business funding in three easy steps

Step 1 – APPLY
First we need a few details about you and your business. Just apply online to get started – it takes less than a minute and there’s no obligation.

Step 2 – GET APPROVED
One of our business lending partners will call for a quick chat about your business and answer any questions you have. If you wish to proceed they will complete a loan application with you.

Step 3 – GET YOUR FUNDS
The process is quick and easy. You could have a decision in as little as an hour, with funding possible in 24 hours to approved applicants.

Does your business qualify?

If your business has a turnover of more than $5,000 per month and can demonstrate at least 6 months of trading for a new business, or at least 3 months if you’ve purchased an existing business, we can help.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $300,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply

For more details feel free to call 08 8451 1500 or email us with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: Are you BAS ready?

The end-of-year period is a busy time of year for everyone, which means that making sure you’re paid on time can be particularly fraught.

Invoice too late or don’t follow up a client promptly, and an invoice that could have been paid in mid-December might not hit your business’s bank account until February. In fact, Xero research confirms that invoice payments are slowest in January.

That can lead to cash flow issues that can cause serious headaches for a business.

To keep the silly season from getting too stressful, here are some tips on managing late invoice payments across the end-of-year period.

Start soon

First things first: plan ahead.

Ideally, you’ll send invoices to your clients no later than Friday 6 December, which will give your clients two full weeks to pay before everyone takes off for the summer holidays.

But where possible, invoice even earlier.

“Don’t wait until December to start following up money from clients,” says Justin Mastores, partner at Rees Group. “Get on the front foot.”

“If you wait until 15 December, the client can say, ‘oh no, we don’t agree with that invoice’. Then it’ll go back and forth, and you won’t actually get paid until January.”

Davie Mach, client manager at Box Advisory Services, generally encourages his clients to have a three-month cash flow buffer, which will help see most through the dreaded December, January and early February period.

Mach adds it’s critical businesses map out their cash flow over this period, too.

“Business owners really need to know their numbers. A lot of businesses simply determine their profit by whatever number is in their bank account,” Mach says.

“But that’s not true at all. Businesses also need to know what’s going to come out of that account over the next couple of months, including any liabilities, taxes and expenses.”

Encourage timely payments

Sidney Cachuela, co-founder of POP Business, says establishing clear lines of communication is important. Make sure your payment terms are clearly outlined in the invoice.

“Both sides of the transaction need to be aware of their responsibilities,” he says.

Mach adds you can implement stricter payment terms, such as reducing the payment term from 30 days to 14 days.

Chase up late payments

Once a client payment reaches the overdue stage, it helps to have an automatic system in place that triggers a payment reminder notice.

If that fails, and you’re hesitant to send out a legal letter in fear of getting your client offside, Mastores says you can employ the services of an accounts receivable consultant or your accountant, to chase the payment up on your behalf.

Cachuela says: “Chasing up late payments can be awkward, and it can be hard maintaining a relationship if you’re forcing your customers to pay. A practical strategy is to outsource your accounts receivable function to a third party.”

Last-minute options

No-one wants to email a client to follow up an unpaid invoice only to get an automated out-of-office reply from your debtor boasting that they’re off skiing in Aspen.

If that’s the case, fortunately, you still have a couple of options up your sleeve.

“Within your business, you may find opportunities to decrease overheads and reduce expenses, which can assist through challenging times,” Cachuela says.

Mastores adds you can apply for a line of credit or a lump-sum short-term business loan, depending on your business’s situation.

“It’s important to research the right financing terms that suit the timeframe and your business’s serviceability to safeguard your business’s ongoing success,” Cachuela says.

Plan ahead for next year

Finally, here are five tips that you can start implementing in the new year to help your business avoid running into late invoice payment problems next summer holidays.

1. Accounting software: “There’s software that allows you to do regular direct debit payments that come out of the customer’s bank account automatically each month or year,” Mach says.
2. Do your research: “Conduct credit checks and background checks on new clients to make sure that they actually are good clients who will pay on time,” he says.
3. Upfront deposit payments: “Certain industries will charge 20 to 50% of the whole job upfront to pay for some costs to get started on stage one of the project,” Mastores says.
4. Retainer: “If you have ongoing relations with a client and know they’ll spend $20,000 year in, year out, get those clients on a regular monthly or quarterly retainer to smooth out the billing,” he says.
5. Prepayment discounts: “Offer customer incentives to reward early invoice payment. Structuring a reasonable discount can be beneficial for cash flow,” Cachuela says.

If stressing over unpaid bills isn’t how you want to spend your festive season, talk to me. We can explore cash flow options during the end-of-year slowdown.

There’s more than one way to nurture your business

We love helping businesses grow with the latest info and ideas to educate and inspire. We can also guide you to a funding solution to help bring those business dreams to life.

How Unsecured Business Loans work…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: How to deal with unpaid invoices at the end of the year

“Strike while the iron is hot” – it’s an old adage, but holds a lot of truth. So, how do you make the most of the ups of seasonal business? And what can you do during the down times to set you up for peak success?

Know what’s coming

For anyone who’s been in business for more than a year, your seasonal fluctuations shouldn’t come as too much of a surprise. So, analyse the data, look at what happened last year and get ready to take full advantage.

“It’s important to be looking at any business and predict when you’re going to have a stronger cash flow,” says Milton Collins, a Victoria-based business coach.

“Understanding the ups and downs of your cash flow, and the impact of your cash flow on your business and your staff, whether they are full-time employed, casual or part-time, is vital.

“Once you understand those peaks and troughs, and are comfortable with that, you can take full advantage of the ups and put your down-time to good use too.”

Whether summer is buzz-time or down-time for your small business, here’s some ways you can make the most of this time of year:

Smarten up your premises

One of the first things to focus on, says Collins, is the appearance of your premises. After all, first impressions count, and if you have a flood of new potential customers visiting the area, you want to make the best impression possible.

“If you’re a cafe, for example, make sure the exterior of your building either has plants or tables and chairs that are really attractive. It attracts people. If you’re a retailer, how are your window displays?

“You need the right signage too. And it’s always got to be clean. So you need to make sure you step back and walk through your door every day as a customer sees it.

“Whatever you do, you’ve got to do it with a bit of style and, whenever possible, keep freshening it up. It doesn’t have to cost a lot of money, but continual investment in your premises is vital. It makes a big difference.”

Consider a pop-up

If you’re located in an area that has an influx of holiday trade, how could you extend your reach and raise your profile?

Pop-up stores are a great and cost-effective way to do this. Maybe there’s a festival or event you could take your offering to, and get a whole host of new customers along the way?

“Look at the opportunities out there,” says Collins. “See what else you could be doing in your business that could either complement what you’re doing or provide an additional service.

“For example, if you’re running a cafe, explore doing outside catering. Do some research.”

Work smarter

Some tasks in any business are done in a certain way because, well, they’ve always been done like that. Use any quiet time to look at the tasks you can automate or systematise, whether through technology or a change of process.

“Improving your efficiency can make great improvements to your business. Some examples can be templating standard email responses – you’ll be amazed how much time this simple action saves,” says Collins.

Review your staffing plan – and your opening hours

Busy times call for more hands-on deck. Have you got enough people to help guarantee no potential customer is left unattended? Invest in your team to ensure no one leaves disappointed – after all, new customers walking out with a less-than-fantastic experience will likely never be seen again.

An extended staff roster will also enable you to trade for longer than you usually do – something which could make all the difference in peak season.

“Most businesses will already have hired their summer casuals,” says Collins. “But you do also have the advantage of school exams and university finishing for the year, as well as many people looking to pick up extra work over summer. Therefore, the supply of workers (especially unskilled) is high.

“Consider bringing in some assistance for the more menial, process-driven tasks to free you up for the more difficult work.

Stock up

For retailers, new stock – and plenty of it – is essential for maximising seasonal trade.

“Look for new products,” says Collins. “Ask yourself ‘What else can I add? What are the lines that will be complementary to what I’m currently selling? What new labels can I get in?’ Don’t become complacent.

And knowing when the peaks are going to come means you can better forecast stock volumes.

From a position of strength

Want to set up your business to take advantage of seasonal fluctuations? Talk with your broker today about how they can help you be ready to go when the opportunity arises.

Unsecured Loans to grow your business…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: Making the most of the seasonal ups and downs

Whether your business is slowing down or gearing up as this year comes to a close, it’s smart to get those loose ends tied up and some plans in place, so you’re entering the new year ready to go.

Here are six things you can do pre-2020 that could help you reap dividends next year.

1. Buy new stock

Plan ahead and invest in the right stock – both product-wise and volume-wise. This is a particularly crucial move for those industries that experience a rush in business over the summer season, such as hospitality venues preparing for New Year’s Eve events and the January holiday trade.

It’s also important for businesses operating within the construction industry who often need to purchase materials upfront ready for projects booked in for January and February.

2. Invest in new equipment

Your business’s success relies on the equipment you use and the people you employ. The right asset can be a wonderful income driver, so if there’s some equipment you need – maybe a new coffee machine that’ll increase output or a new van that’ll double your delivery capacity – why wait?

Technology upgrades are also worth considering. With technology moving at a faster pace than ever before, older systems can take their toll on a small business. Use any down time to streamline your tech stack, otherwise a loss in productivity could be amplified in your busy periods.

3. Fix the things that need fixing

Got some things in need of repair? Don’t delay. Your staff won’t like working with broken items, and your customers definitely won’t appreciate it. Without the right parts in good working order, a well-oiled machine will quickly lose traction, productivity will drop and staff morale takes a hit.

Remember, first impressions count. Whether it’s a broken door, temperamental fridge or changing room that’s in need of a light repair, get’em fixed.

4. Smooth your cash flow

December and January can see business grind to a halt as people enjoy a much-needed holiday. This can result in your income stream taking a temporary hit, particularly if you operate in the professional services sector.

Be prepared for these seasonal fluctuations by exploring finance options to smooth out any potential dips in cash flow.

5. Renovations and refurbishments

If trade’s easing off in the run-up to the holiday season, now’s the time to take advantage and complete those renos or refurbishments you’ve been planning for a while. Whether you’re thinking full-on reno or a cosmetic refit, investing in your premises can help you feel reinvigorated going into the new year.

6. Invest in marketing

Again, capitalise on the quiet time by reviewing your marketing plan. If your website would benefit from an overhaul, your social media needs some attention, or your brochures need a good update, now could be a great time to get those plans moving.

Get advice

Whether end-of-year is a quiet or busy time for your small business, be prepared to make the most of it.

Not sure where to start? Speak with your finance broker about where you could invest and get ready to see the New Year in with a bang.

Get an Unsecured Business Loan…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: How best to spend your small business’s time – and money – over the summer period

Is your business and personal finance wrapped up together? If so, now might be the time to consider ‘decoupling’.

Access to funding is critical for many small businesses. And, the reality is that traditional lenders don’t typically lend to businesses who don’t have an extensive trading history. As a consequence, many businesses have resorted to using their personal mortgage, a personal loan or credit card to fund their business, with the belief that doing so is a viable and cost effective alternative.

“Using personal credit sources to facilitate business funding has been born out of necessity for many small businesses, as banks – which historically have been the only source of finance – usually require the applicant’s house as security for the business loan,” says Nathan Watt, managing director of Watson & Watt, a Queensland-based accounting and tax advisory consultancy that specialises in working with small businesses.

Fast forward to the current landscape: small businesses are now in the enviable position of being able to access funding through the emergence of alternative lenders dedicated to enabling business growth or smoothing out cash flow challenges. This environment also provides a natural platform to separate personal and business finance – otherwise known as ‘decoupling.’

“The reality is, if you are running your own business, you should keep your business and personal finances separate,” says Watt. Particularly now. With interest rates at a record low, homeowners are in an enviable position to shop around to secure a competitive rate for their home loan.

Here’s three benefits of decoupling personal and business finances:

1. Access to better home loan rates

While a mortgage interest rate may seem attractive when compared to some business loan rates, you need to factor in the duration of the loan, too.

“While the mortgage rate may be good, paying off a business loan over 15 or 20 years will see that interest really rack up. On this note, considering the loan term is as important as the rate to ensure the true cost of the loan doesn’t skyrocket,” says Watt.

You can typically access more competitive rates when you ‘decouple’ your assets, as each asset can be reviewed independently, and the most appropriate product for each found.

According to Watt, “It’s always wise to review the rates you’re paying on any finance and see if there are better deals out there.

“When interest rates are cut, it makes sense to conduct a review,” he says.

For example, a mortgage taken out four or five years ago may have an interest rate of over 5% p.a., whereas an average home loan rate today can be found around 3.44% p.a. A 1.5% drop in a home loan interest rate would result in significant savings over the term of the loan.

2. Your home’s not exposed

The biggest drawcard for decoupling your personal and business finances, is keeping your personal and business assets separate, says Watt.

“When working with small business owners, I always advise them to keep things completely separate if at all possible,” he says.

“It protects your personal assets as well as keeping your finances neat.

“Ultimately, if you have your home tied up in your business finances, you are staking your home on the success of your business.”

3. It’s more tax efficient

Separating your personal and business finances makes it significantly more straightforward when it comes to tax time.

“If you have your personal and business finance intertwined, you have to work out percentages of what’s deductible and what’s not,” says Watt.

“If your finance is all in your mortgage, for example, it can result in it being less tax efficient as you’re being charged the interest on the principal over a far greater period of time than you would be if you take out standalone vehicle, equipment or business finance.”

Get advice

Now is a great time for small businesses to explore how to decouple their personal and business finances.

While it can be a complex task to undertake, your finance broker will be able to guide you through the process, and advise on the most suitable products and structure for your business and personal finance.

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

How Alternative Business Finance Works…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: The benefits of decoupling personal and business finance

At this time of year, many small businesses are starting to think about gearing up in readiness for the next few months as we head towards one of the busiest times of the year – the Summer holiday period.

Yet many plans require an injection of funds which may not be readily available at this time of year.

We all know that accessing funding from traditional sources can be challenging for small businesses, particularly those who are affected by any type of seasonality.

That’s why we work with small business lending specialist, Prospa – because they understand the seasonality of different industries and know exactly how it impacts cash flow and growth plans.

They shared with us the story of Margaret who owns Fashion from Heaven, a mid to high-end clothing boutique. Due to the very nature of the fashion industry, cash flow for Margaret’s business is affected by different selling seasons.

For Margaret, accessing business finance allowed her to employ more staff, freeing-up her time to work on the business, rather than in it.

She can now spend more time researching new labels and liaising with wholesalers, improving her social media reach and thinking about what her business needs to continue to grow.

Hear more about Margaret’s story…

If you require some additional funds to grow your business, fund an opportunity or support cash flow, click on the link below to to provide your details.

Someone will call you right back for a quick chat to see if you have any questions, Then, if you’re comfortable to proceed, you will be guided through the application – it only takes about ten minutes.

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

How Unsecured Business Loans Work…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: When timely access to funding makes a difference

We can help you access additional funds to help stay on top of your ATO obligations?

Just a reminder that by 28 October most small businesses need to lodge and pay BAS and super guarantee contributions.

With the ATO taking a hard line on missed deadlines, it’s more important than ever for small businesses to plan how they will make their repayments on time to avoid potential consequences such as ATO penalties or a bad credit rating.

We offer small business loans and a line of credit facility that could help you stay on top of your ATO obligations when you don’t have the cash on hand to cover requirements.

Here’s how we can help:

• Rates from 9.9% p.a.*
• Funding possible in 24 hours
• Loans from $5,000 to $300,000
• Line of credit up to $25,000
• No asset security required to access up to $150,000
• Structured, manageable repayment plans

To qualify you will need an ABN and have been in business for more than 6 months. Then all you need to do is provide your last 3 months of banks statements and you’ll be able to borrow 100% of your monthly turnover.

>> GET STARTED – To apply visit xpressbusinessloans.com.au 

Small Business Loan Case Studies

Whether you need the funds for a new marketing campaign, payment of wages or suppliers, BAS or ATO obligations, or to purchase stock or invest in new equipment, we’ve got you covered. Here’s a few real examples;

LOAN 1 – Sport / Tennis coach
Requirement: Lighting equipment purchase
Loan Amount: $50,000
Term: 12 months
Rate: 1.40% per fortnight – Total Interest Percentage (TIP): 20.00%
KEY PRICING INPUTS
+ Diversified income sources
− Limited coaching resources available to meet client demand
WHY?
Unsecured – Couldn’t secure finance from traditional lenders due to lack of assets sought as security

LOAN 2 – Medical / Podiatrist
Requirement: Practice acquisition
Loan Amount: $250,000
Term: 12 months
Rate: 1.50% per fortnight – Total Interest Percentage (TIP): 21.50%
KEY PRICING INPUTS
+ Track record of growing profits
+ No ATO debt
− Limited experience in running a practice
WHY?
Eligibility – An acquisition opportunity presented, which needed to be funded by equity and business finance.

LOAN 3 – Pharmaceutical
Requirement: Bridge finance
Loan Amount: $500,000
Term: 12 months
Rate: 1.00% per fortnight – Total Interest Percentage (TIP): 14.06%
KEY PRICING INPUTS
+ ATO debt repaid
+ Diversified income sources
+ Good credit history
− Weak balance sheet
WHY?
Speed – Urgent need to fund inventory purchase while changing banks.

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

How Unsecured Business Loans Work…

All you need is an ABN and 6 months in business to apply for a loan. Best of all you don’t need to provide financials or any security for loan amounts less than $150,000.

The amount you can borrow is based on the turnover [gross income/revenue] of your business, which is verified by your last 3 months of business bank statements.

As a general rule you can expect to borrow 100% of your monthly business turnover. For example, if you have $50,000 in monthly revenue you will qualify for a $50,000 business loan.

What you need;
– An active ABN [been in business 6 months]
– 3 months of business bank statements
– Minimum $5,000 in monthly turnover/revenue

Loan Features;
– Borrow $5,000 – $500,000
– Loan rates from .75% per month
– 100% Unsecured – No collateral required!
– Low Doc – No financials required!
– 3 to 36 month loan terms
– Cash flow friendly repayments [daily, weekly or fortnightly]
– Approved and funded in as little as 24 hours!
– No hidden fees
– No interest penalty for early repayment

>> GET STARTED – To apply visit xpressbusinessloans.com.au/apply 

For more details feel free to call 08 8451 1500 or email us back with your query.

Cheers,

Sam, Matt & Andy
​Urbantech Finance

PS. Remember, with just an ABN and 3 months of business bank statements you can borrow up to 100% of your monthly turnover. Borrowing money for your business does not get any easier than this!

We hope you enjoyed our post: Are you BAS ready?

Most small businesses use finance when they’re starting out. Access to finance can also help you manage your cash flow, cover unexpected expenses and purchase the equipment you need to grow.

Different loans are designed for different circumstances so it’s important to find one that meets your needs in a cost-effective way.

To help you get started, we’ve taken a look at the pros and cons of some of the most popular options.

An overdraft or line of credit

How they work

Both an overdraft and a line of credit can provide access to revolving credit, which means the money you repay is available for you to use again as you need it. An overdraft allows you to overdraw on your business bank account up to an amount approved by your financial institution. A line of credit may take the form of a business credit card or a debit card linked a separate account. Both can be useful for smoothing your cash flow or provide a useful source of short-term capital.

Pros:

• Flexibility – you can use funds as you need them and repay the loan at your own pace.
• If they’re well-managed, they can help to establish a good credit history for future borrowing.
• A line of credit is available whether or not you have money in your account.

Cons:

• With an overdraft, you may have to pay fees even when you’re not using the facility.
• You may have to pay a penalty fee if you exceed your overdraft limit.
• Some business lines of credit need to be secured, so you may need to use your home or business property or other business assets as collateral.

Term loan (secured or unsecured)

How it works

A term loan has an established repayment schedule over a number of years – anywhere from one to 25 – and can have a fixed or variable interest rate. This type of loan can be used for plant & equipment, core inventory acquisitions or another business purpose as well as business start-up costs.

Pros:

• You can choose the type of term loan that provides more flexible repayment options, including fixed, variable and split rates.
• Repayments can initially be interest-only to assist with business cashflow requirements.
• You may be able to borrow relatively large sums over a longer term at a relatively low interest rate.
• Ideally you will match the term of the loan to the lifespan of the underlying asset.

Cons:

• The application process can be time-consuming and demanding.
• You may have to provide property or business assets as security.
• If you choose a variable interest rate your repayments will increase whenever interest rates rise.

Commercial property loan

How it works

A commercial property loan will enable you to purchase rather than lease your business premises. It’s similar to a home loan but tends to be for a shorter period and the lender will take things like the nature and location of your business into consideration.

Pros:

• Rather than paying rent, you’ll be investing in a capital asset.
• As you pay off the loan, you may be able to use the equity to grow your business.
• You may be able to claim depreciation of fixtures and fittings.
• Can also be used to purchase commercial investment property.

Cons:

• If you choose a variable interest rate, your repayments will increase whenever interest rates rise.
• Many lenders require a personal guarantee, so assets such as your family home could be at risk.
• You’ll need to factor in expenses such as rates and repairs, which are normally covered by a landlord.

Hire purchase

How it works

Hire purchase can be a good choice if you can’t afford to buy an asset outright but eventually want to own it. A lender purchases the equipment on your behalf, and you hire it from them for an agreed period of time. You take ownership when the purchase price and interest have been paid in full.

Pros:

• Hire purchase can be flexible, with a choice of contract lengths and, in some cases, the option of a final balloon or residual payment to reduce monthly outlay.
• Interest is usually fixed, so it’s easy to budget for your payments.
• You may be able to claim appropriate tax deductions.

Cons:

• Interest can add significantly to the cost.
• Some lenders require a deposit.
• You don’t own the asset until it’s fully paid for so, if you default, you could lose the asset and the payments you’ve already made.

Looking for more information on what’s right for you?

Each type of loan includes products with different interest rates, fees, features and limitations. A professional mortgage broker understands all of the available options and can help you find the best solution for your business.

For more information or assistance with your finances please call us on 08 8451 1500

Cheers,

Urbantech Finance
Adelaide Mortgage Brokers + a lot more…

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We hope you enjoyed our post: A Simple Guide To Small Business loans

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 as hire purchase agreements; and operating leases.

A finance lease allows your business to buy a vehicle or equipment on credit. Your chosen lender purchases the equipment on your behalf and you pay it off in instalments. Once you’ve paid the last instalment, you have the option to purchase the item for a specified sum. This amount is referred to as a residual or balloon payment.

An operating lease gives your business the use of a vehicle or piece of equipment for the term of the lease agreement. After that time, ownership of the leased item reverts to the lessor.

The Australian Tax Office allows some lease payments to be treated as tax deductible expenses. Other lease payments are treated as depreciation expenses. It’s important to talk to your accountant or tax adviser before entering into an asset finance agreement to ensure you understand the tax implications for your business.

There’s almost nothing you can’t lease

In the past, most leased items consisted of what were known as ‘hard assets’ – tangible, physical items with a readily ascertained resale value. Think buildings, motor vehicles, machinery, heavy equipment and the like.

Today, businesses can lease a much broader range of items, including a vast array of ‘soft assets’. These can be intangible items whose resale value is negligible, or difficult to determine. They can include kitchen and catering equipment, fitness equipment, audio-visual equipment, office furniture, security systems, telecommunications infrastructure and computer hardware and software.

Many business owners choose to lease the hardware and software they need to run their enterprises, rather than buying it outright. It’s also possible to include intangibles, such as cloud storage and network support, in an asset finance agreement.

Leasing information technology products and services can allow your business to avoid the high upfront costs that can put these assets out of reach for smaller enterprises. Information technology changes quickly, and leasing, rather than buying, can mean you’re not locked in to an ageing or obsolete solution because you don’t have the funds to replace it.

Lease terms can vary from as little as 12 months to as long as seven years. Soft assets generally have shorter lease terms while hard assets, which depreciate more slowly, are typically leased over longer periods. The longer the lease term, the lower the monthly repayments will be.

Want to know more?

Having ready access to the assets you need to run and grow your business is important. Without it, you may not be able to take advantage of opportunities to expand, diversify and build your bottom line.

Using asset finance to acquire items can help you spread the cost of expensive items over a manageable period and reduce the chances of a cash flow crunch derailing your growth.

A broker can talk you through the range of finance options that may be available to your business. They can help you identify and secure the commercial finance that best meets the needs of your growing enterprise.

For more information or assistance with your finances please call us on 08 8451 1500

Cheers,

Urbantech Finance
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We hope you enjoyed our post: How asset finance can help your business grow

Small businesses can always benefit from an upgrade to existing equipment or from purchasing the very latest technology or machinery. However, the reality is that many business owners simply don’t have enough working capital to consider an outright purchase – making equipment finance an advantageous option.

Even if you can afford to invest significant cash into new assets, you are likely to be left with less capital to finance regular operations and explore new growth opportunities.

According to the Commercial Asset Finance Brokers Association of Australia (CAFBA), the asset finance market in Australia is worth $100 billion in receivables, at any given time, and around $40 billion in new equipment loans are written each year.

What are the most common types of equipment finance?

In short, vehicle and equipment financing enable you to purchase vehicles, machinery, office equipment and other requirements for your business on either a lease or rental basis. There are several options available for funding your business needs:

• A vehicle/equipment loan (also referred to as a Chattel Mortgage) is the option chosen by most businesses to purchase equipment, and comprises 78 per cent of the finance market. Throughout the loan, your business owns the asset, and the bank uses it as security, in case you default on your repayments.
• An alternative option to an equipment loan is taking out an equipment finance lease, where the bank or lender would own the equipment and rent it to the business for an agreed term at a fixed rental rate. Once the agreed term expires, you have the option to return the equipment, refinance the equipment or purchase it outright.
• Opting for a hire purchase loan means the bank or lender owns the equipment and you make repayments on it until the end of the term, when the ownership transfers over to you. The world of equipment finance can be tricky to navigate, so read on for a list of the top five questions every small business owner should ask themselves before taking out equipment finance.

Depending on which loan structure you choose, tax implications may apply, so it’s important to talk to your accountant or financial adviser about any business lending and your specific financial circumstances.

Knowing how your business’ bottom line will be impacted when you take out equipment finance is important; however, this can be difficult if your business is affected by seasonal cash flow fluctuations. Tools like our Equipment Finance Repayment Calculator can be helpful in this scenario, and many finance providers now offer the opportunity to match repayments to periods of higher cash flow.

Is an equipment loan or an equipment lease right for me?

Choosing the best way to pay for equipment can depend on the expected productive life of an asset. If you will need an update after a relatively short period of time, leasing equipment might be the better option. This way you avoid having to finish paying off an asset that is now obsolete, which can put stress on cash flow. If the equipment is likely to generate value for a long period, an equipment loan may suit you better.

Should I use a broker?

In addition to helping you with the equipment loan application process, finance brokers also have access to a wide range of lenders and finance products, helping you secure the most competitive interest rates, and can advise you on which option that works for your business.

Who is responsible for the equipment during the finance period?

Establish from the outset of the agreement who is responsible for maintenance, repair and replacement of the equipment during the finance period. If damage or fault occurs, you don’t want to get caught out with unexpected costs.

Are there establishment fees involved?

Establishment fees can easily run into the hundreds, so it is important to be aware if there are any when you are deciding which finance option is right for you.

What happens at the end of the finance period?

Before signing an agreement, it is important you understand what happens at the end of the finance period, as scenarios can vary depending on the finance option you choose. For example, if you are leasing the equipment, once the agreed term expires, you have the option to return the equipment, refinance the equipment or purchase it outright.

For more information or assistance with your finances please call us on 08 8451 1500

Cheers,

Urbantech Finance
Adelaide Mortgage Brokers + a lot more…

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We hope you enjoyed our post: The Small Business Owner’s Definitive Guide To Equipment Finance