At its meeting today, the RBA Board decided to leave the cash rate unchanged at 0.75 per cent.

Statement by RBA’s Philip Lowe:

The outlook for the global economy remains reasonable. There have been signs that the slowdown in global growth that started in 2018 is coming to an end. Global growth is expected to be a little stronger this year and next than it was last year and inflation remains low almost everywhere. One continuing source of uncertainty, despite recent progress, is the trade and technology dispute between the US and China, which has affected international trade flows and investment. Another source of uncertainty is the coronavirus, which is having a significant effect on the Chinese economy at present. It is too early to determine how long-lasting the impact will be.

Interest rates are very low around the world and a number of central banks eased monetary policy over the second half of last year. There is an expectation of a little further monetary easing in some economies. Long-term government bond yields are around record lows in many countries, including Australia. Borrowing rates for both businesses and households are at historically low levels. The Australian dollar is around its lowest level over recent times.

The central scenario is for the Australian economy to grow by around 2¾ per cent this year and 3 per cent next year, which would be a step up from the growth rates over the past two years. In the short term, the bushfires and the coronavirus outbreak will temporarily weigh on domestic growth. The household sector has been adjusting to a protracted period of slow wages growth and, last year, to a decline in housing prices, with the result that consumption has been quite weak. Following this period of balance-sheet adjustment, consumption growth is expected to pick up gradually. The overall outlook is also being supported by the low level of interest rates, recent tax refunds, ongoing spending on infrastructure, a brighter outlook for the resources sector and, later this year, an expected recovery in residential construction.

The unemployment rate declined in December to 5.1 per cent. It is expected to remain around this level for some time, before gradually declining to a little below 5 per cent in 2021. Wages growth is subdued and is expected to remain at around its current rate for some time yet. A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2–3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.

Inflation remains low and stable. Over 2019, CPI inflation was 1.8 per cent and underlying inflation was a little lower than this. The central scenario is for CPI inflation to be around 2 per cent in the near term and to fluctuate around that rate over the next couple of years. In underlying terms, inflation is expected to increase gradually to 2 per cent over the next couple of years.

There are continuing signs of a pick-up in established housing markets. This is especially so in Sydney and Melbourne, but prices in some other markets have also increased. Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality. Credit conditions for small and medium-sized businesses remain tight.

The easing of monetary policy last year is supporting employment and income growth in Australia and a return of inflation to the medium-term target range. The lower cash rate has put downward pressure on the exchange rate, which is supporting activity across a range of industries. Lower interest rates have assisted with the process of household balance sheet adjustment. They have also boosted asset prices, which in time should lead to increased spending, including on residential construction. Progress is expected towards the inflation target and towards full employment, but that progress is expected to remain gradual.

With interest rates having already been reduced to a very low level and recognising the long and variable lags in the transmission of monetary policy, the Board decided to hold the cash rate steady at this meeting. Due to both global and domestic factors, it is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target. The Board will continue to monitor developments carefully, including in the labour market. It remains prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

Need help with your finances or want to discuss your how interest rate changes could affect your situation? We’re as close as your phone – call 08 8451 1500

Sam, Matt & Andy
Urbantech Group
>>  See all of our best home loan rates here + a lot more…

We hope you enjoyed our post: The RBA’s interest rate statement for February 2020

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

At its meeting today, the RBA Board decided to leave the cash rate unchanged at 0.75 per cent.

Statement by RBA’s Philip Lowe:

The outlook for the global economy remains reasonable. While the risks are still tilted to the downside, some of these risks have lessened recently. The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty. At the same time, in most advanced economies unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken steps to support the economy while continuing to address risks in the financial system.

Interest rates are very low around the world and a number of central banks have eased monetary policy over recent months in response to the downside risks and subdued inflation. Expectations of further monetary easing have generally been scaled back. Financial market sentiment has continued to improve and long-term government bond yields are around record lows in many countries, including Australia. Borrowing rates for both businesses and households are at historically low levels. The Australian dollar is at the lower end of its range over recent times.

After a soft patch in the second half of last year, the Australian economy appears to have reached a gentle turning point. The central scenario is for growth to pick up gradually to around 3 per cent in 2021. The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices and a brighter outlook for the resources sector should all support growth. The main domestic uncertainty continues to be the outlook for consumption, with the sustained period of only modest increases in household disposable income continuing to weigh on consumer spending. Other sources of uncertainty include the effects of the drought and the evolution of the housing construction cycle.

The unemployment rate has been steady at around 5¼ per cent over recent months. It is expected to remain around this level for some time, before gradually declining to a little below 5 per cent in 2021. Wages growth is subdued and is expected to remain at around its current rate for some time yet. A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2–3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.

Inflation is expected to pick up, but to do so only gradually. In both headline and underlying terms, inflation is expected to be close to 2 per cent in 2020 and 2021.

There are further signs of a turnaround in established housing markets. This is especially so in Sydney and Melbourne, but prices in some other markets have also increased recently. In contrast, new dwelling activity is still declining and growth in housing credit remains low. Demand for credit by investors is subdued and credit conditions, especially for small and medium-sized businesses, remain tight. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.

The easing of monetary policy this year is supporting employment and income growth in Australia and a return of inflation to the medium-term target range. The lower cash rate has put downward pressure on the exchange rate, which is supporting activity across a range of industries. It has also boosted asset prices, which in time should lead to increased spending, including on residential construction. Lower mortgage rates are also boosting aggregate household disposable income, which, in time, will boost household spending.

Given these effects of lower interest rates and the long and variable lags in the transmission of monetary policy, the Board decided to hold the cash rate steady at this meeting while it continues to monitor developments, including in the labour market. The Board also agreed that due to both global and domestic factors, it was reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target. The Board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

Need help with your finances or want to discuss your how interest rate changes could affect your situation? We’re as close as your phone – call 08 8451 1500

Sam, Matt & Andy
Urbantech Group
>>  See all of our best home loan rates here + a lot more…

We hope you enjoyed our post: The RBA’s interest rate statement for December 2019

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

At its meeting today, the RBA Board decided to leave the cash rate unchanged at 0.75 per cent.

Statement by RBA’s Philip Lowe:

While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty. At the same time, in most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken steps to support the economy while continuing to address risks in the financial system.

Interest rates are very low around the world and a number of central banks have eased monetary policy in response to the persistent downside risks and subdued inflation. Expectations of further monetary easing have generally been scaled back over the past month and financial market sentiment has improved a little. Even so, long-term government bond yields are around record lows in many countries, including Australia. Borrowing rates for both businesses and households are also at historically low levels. The Australian dollar is at the lower end of its range over recent times.

The outlook for the Australian economy is little changed from three months ago. After a soft patch in the second half of last year, a gentle turning point appears to have been reached. The central scenario is for the Australian economy to grow by around 2¼ per cent this year and then for growth gradually to pick up to around 3 per cent in 2021. The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth. The main domestic uncertainty continues to be the outlook for consumption, with the sustained period of only modest increases in household disposable income continuing to weigh on consumer spending. Other sources of uncertainty include the effects of the drought and the evolution of the housing construction cycle.

Employment has continued to grow strongly and has been matched by strong growth in labour supply, with labour force participation at a record high. The unemployment rate has remained steady at around 5¼ per cent over recent months. It is expected to remain around this level for some time, before gradually declining to a little below 5 per cent in 2021. Wages growth remains subdued and is expected to remain at around its current rate for some time yet. A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2–3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.

The recent inflation data were broadly as expected, with headline inflation at 1.7 per cent over the year to the September quarter. The central scenario remains for inflation to pick up, but to do so only gradually. In both headline and underlying terms, inflation is expected to be close to 2 per cent in 2020 and 2021.

There are further signs of a turnaround in established housing markets, especially in Sydney and Melbourne. In contrast, new dwelling activity is still declining and growth in housing credit remains low. Demand for credit by investors is subdued and credit conditions, especially for small and medium-sized businesses, remain tight. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.

The easing of monetary policy since June is supporting employment and income growth in Australia and a return of inflation to the medium-term target range. Given global developments and the evidence of the spare capacity in the Australian economy, it is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target. The Board will continue to monitor developments, including in the labour market, and is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

Need help with your finances or want to discuss your how interest rate changes could affect your situation? We’re as close as your phone – call 08 8451 1500

Sam, Matt & Andy
Urbantech Group
>>  See all of our best home loan rates here + a lot more…

We hope you enjoyed our post: The RBA’s interest rate statement for November 2019

If you are buying or selling a property, the settlement period is when you will deal with finances and paperwork to legally transfer ownership of the property. Your financial and legal reps will handle the hard stuff but knowing what is involved is key to a smooth settlement. Here we guide you through it.

Before settlement

The length of the settlement (typically 30-90 days) can either be outlined in the contract of sale from the outset or negotiated by the buyer or seller before signing the contract.

If you are a seller and still looking for a new place to live, you might want to negotiate a longer settlement period. On the other hand, buyers may also have certain parameters, such as a settlement before Christmas or the start of the school year.

Negotiating the right settlement duration is all about what works for both parties.

Leading up to settlement day

Once the settlement period begins, you can expect a lot of activity.

First, the seller’s solicitor or conveyancer will contact them to fill in forms agreeing to transfer land, pay stamp duty and inform buyers of any encumbrances that exist on the title – for example, if there are restrictions on the use of land.

The conveyancer will also go over the contract, get the cheques ready and ensure any existing mortgages on the property are paid off.

Before settlement, buyers also generally check out the house one final time. This typically happens in the week before settlement day and is arranged by the seller’s agent.

On top of doing a final house clean, sellers can go the extra mile by leaving behind manuals for appliances, listing paint colours and passing on any other tips to help the new owners.

Settlement day

Settlement day is a much-anticipated day when you can finally take ownership of your new home or move on to new pastures.

A lot happens at settlement – much of it behind the scenes. Usually each party’s settlement agent (solicitor or conveyancer) will meet with representatives from the lenders (usually a bank) to exchange documents.

What usually happens is:

• The buyer’s mortgage comes into effect and the seller receives the remaining balance of the house price, usually 90%.
• The buyer’s conveyancer officially receives the property title and registers them as the new owner.
• Cheques are exchanged and the seller can claim the deposit from their agent.
• Any outstanding paperwork and payments, such as stamp duty and council rates, are signed and sorted.
• The keys are handed over and the property is officially sold!

What happens if it doesn’t go according to plan?

If you have engaged experienced professionals to help you with settlement, then setbacks are rare. On occasion, however, there may be issues such as delayed finance, missing signatures or concerns with the final property inspection. However, a good conveyancer will take it on themselves to do everything they can to rectify any problems quickly.

Once everything is signed, sealed and delivered you will be free to move into your new home or begin your next adventure.

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

Cheers,

Urbantech Finance
Adelaide Mortgage Brokers + a lot more…

We hope you enjoyed our post: What to know for a hassle-free settlement day