BUSINESS TERM LOAN/VIRIDIAN LINE OF CREDIT

A business or term loan provides a business with flexible access to finance when needed capital for purchasing a business, or additional capital for business expansion, major plant and equipment upgrades, or purchasing commercial property.

The flexibility is in the loan type, both fixed rate and variable rate business loans are available and a business can usually choose to make principal and interest or interest only repayments.

Business loan terms vary widely between lenders, but can be as long as 30 years; the minimum loan amount a business can borrow also varies widely so you will need to discuss these options with Lawrence Commercial.

An additional benefit of a business or term loan is portability, allowing a business to change the security used during the life of the loan.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

CASH FLOW FINANCE

Cash flow finance provides a business with access to the money tied up in outstanding invoices, allowing a business to continue meeting working capital requirements in periods of fluctuating or irregular cash flow.

With cash flow finance a business will generally be able to access funds totaling up to 80 per cent of the value of unpaid invoices, which is particularly useful during periods of rapid growth, business acquisitions or seasonal sales cycles.

The outstanding value of these invoices acts as security so there is no need to use residential or commercial property or sales goods to secure a cash flow finance facility.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

DEVELOPMENT FINANCE

Development finance is very similar to a residential construction loan, operating as a draw-down facility whereby a business can access funds required at each stage of the development, rather than the entire loan at one time.

A development finance facility is generally available for between one and five years, depending on the scope of the development project being undertaken.

Most lenders will allow a business to capitalise interest during the development period, with the full loan falling due upon sale of the development.

This is one of the most challenging types of loans to be funded as there may be a need for a level of presales, mezzanine funds and equity participation.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

HIRE PURCHASE

A hire purchase is a finance arrangement used to pay for goods over a period of time, usually one-to-five years, rather than paying the full cost upfront, with ownership retained by the financier until the hire purchase term is complete and the borrower has made the final repayment. At the end of the hire purchase term the title of the goods automatically passes to the business. 

Repayments on a hire purchase can be quite flexible and are often tailored to business needs, ideal if the business operates on irregular cash flow due to seasonal sales cycles.

An option also to have a balloon payment at the end of the hire purchase term of between 10 and 40 per cent of the value of the goods. This balloon payment will reduce regular repayments, the nominated balloon payment percentage will be required by the end of the hire purchase term to complete contractual requirements.

From a taxation perspective, a hire purchase arrangement may be beneficial. As it is deemed as a sale, a GST liability will arise, which a borrower may be able to claim upfront rather than yearly as repayments are made.

The interest rate component of hire purchase repayments and any depreciation on equipment may also be claimable for taxation purposes.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

CHATTEL MORTGAGE

A chattel mortgage is similar to a residential mortgage, except the finance provided is used to purchase vehicles or equipment rather than property.

With a chattel mortgage, ownership of the goods passes to the borrower on purchase, however the title to goods remains with the financier until the mortgage is repaid in full.

A chattel mortgage is particularly useful for any business operating on a cash method of accounting, including companies, partnerships and sole traders, as it allows businesses to claim the GST component of any vehicles or equipment purchased upfront.

A borrower may also be able to claim some tax benefits, including depreciation and the interest costs on the chattel mortgage.

A chattel mortgage is generally a fixed interest loan with a one-to-five year loan term, and is generally secured by the vehicle or equipment being purchased. As with a hire purchase agreement, an option to make a balloon payment or lump sum payment at the end of the loan term is available, reducing ongoing repayment amount.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

LEASING FINANCE

With leasing finance, a leasing company takes ownership of vehicles and equipment and then leases them out to the business for an agreed repayment amount and term, usually two-to-five years. Leasing finance may be ideal when a borrower needs vehicles or equipment that have long effective lives.

As a leasing finance agreement is a fixed rate, fixed term contract, it has the benefit of enabling the borrower to effectively plan finances over the leasing finance period. Lease payments are also usually tax deductible and the borrower should be able to claim the GST proportion of the repayments for tax purposes.

At the end of a leasing finance period, the borrower can often choose to purchase the vehicle or equipment at a price specified in original leasing finance contract. A borrower may also be able to purchase any leased vehicle or equipment earlier in the leasing finance period by paying out the leasing finance contract and remaining agreed purchase amount. 

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.

INSURANCE PREMIUM FUNDING

Spread your Insurance premium payments to suit your Cashflow. When business expenses are paid at regular monthly intervals, it’s a lot easier to maintain a positive Cashflow.

You now have the opportunity to finance your Insurance premium. This allows you to spread the cost of your premium over a choice of 6 to 12 monthly installments. Instead of the strain of a lump sum payment, you simply make a single, more manageable payment each month. It’s an easy way to maintain your professional cover while also streamlining your Cashflow.

Insurance Premium Finance offers these attractive benefits to your business.

• Competitive interest rate fixed for 6 to 12 months.

• Pay by the month convenience.

• More manageable payments at regular intervals that help you streamline your Cashflow planning more easily and accurately.

• Convenient direct debit payments from your bank account.

• Simple, no-fuss application process.

Lawrence Commercial can help tailor the correct facility to meet your specific borrowing needs. Contact Lawrence Commercial and find out how we can take care of your business financing needs.