HomeFinanceFriday, January 18, 2019, 12:06:09

Tuesday, May 22, 18, 13:23:33, 9 Months Ago Via gccfinance In Finance

An Inconvenient Truth about Borrowing for Business
Rated 0 out of 5 stars based on 0 reviews.
Hits: 2

Whether your business is just starting out, or has been established for many years, the way you manage cash flow may not be key to Al Gore’s business success but it will be key to your own.

Whether your business is just starting out, or has been established for many years, the way you manage cash flow may not be key to Al Gore’s business success but it will be key to your own.

Understanding a few home truths about business finance can ensure you manage cash flow and optimize it.

Rates are less important than terms and features are

The first thing business owners tend to look at when exploring business finance is the rate at which finance is offered.

This isn’t necessarily the best way to approach finance.

While rates are important, they should ideally be thought of as a function of features and terms against the security you offer against the loan or finance amount required.

If you select the wrong term or features, a loan you thought was cheap may end up costing you substantially more.

This is a common error made by business particularly in the area of vehicle finance.

The best way to approach finance is to speak with people who will educate you about your security position and outline not just the cheapest rate, but also the options appropriate and specific to your business.

Beware of deals that sound too good to be true – they rarely are

Finance companies are always offering business owners, sweeteners – additional features and benefits.

These items are often intended to just distract you from the real cost of the loan to your business.

When evaluating a deal, be sure to compare options. Be careful about rushing a finance decision offered by a dealer or vendor, and discuss the capital expenditure forecast – and needs – beforehand with your accountant, or team, internally.

You can borrow against bricks and mortar – also unencumbered equipment, invoices, debtors, cash flow and more these days

Value is no longer defined by money, but by business assets which can range from ideas, to unencumbered equipment, invoices, debtors, cash flow and more these days.

Understanding your asset base, as defined by contemporary commercial brokers, and business financiers, can ensure you obtain the cash flow and funds your business needs to more than just survive – thrive!

The key to obtaining finance against such assets is bothering to make those additional enquiries, or utilizing an experienced broker who is knowledgeable about options, and who will outline – and compare – alternatives.

It pays to finance any asset purchased for use in business

There are tax, depreciation and working capital based benefits that can ensure the retained earnings in your business are put to best use.

A few examples where it could pay to use borrowed money in your business include office fit-outs, software and licensing costs, specialized overseas commercial equipment finance, older assets – they can all easily be financed when you deal with a financier or broker with appropriate options. The lower the resale value, generally, the higher the rate and shorter the term. Don’t accept a no – ask why and how.

The only person you should have to report to is yourself

When your exposure to a single business lender crosses $1 million, you will most likely be required to provide additional reporting and may require particular financial ratios or covenants to be met depending on your industry.

At this point, it may make sense to move all exposures with a single lender. Navigating across different lenders policies may minimize the need for updated financials or additional reports and can keep you focused on the only business that matters ultimately.

Your own.

By Chris Slack, Head of Business Finance at Global Capital Corporation

For more details visit our website https://www.gccbusinessfinance.com.au/.


Sign In

About Author
GCCBusiness Finance
Date Registered: Fri, Mar 23, 2018
Last Time Online: Fri, Dec 14, 2018
So far has created 4 entries.
Global Capital Commercial’s Business Finance team has industry-leading experience in business solutions for small to medium enterprises (SMEs) and major corporations across most industries.

Home Page

Related Articles


Mar 15, 18, 11 Months Ago Via mohmmadkamrudin701 In Business

If you are working in a business to consumer model, you will need to identify and then be able to jump over several hurdles for your business to run successfully. It is not easy to run a business, and it is especially challenging to keep your business above water when the market is competitive. If you work in the vaporizer industry, you know that competition is high, and that you will need to think more creatively about a strategic plan to keep your vaping company successful and unique. You will...

Mar 15, 18, 11 Months Ago Via kingdomvapor In Food and Drink

video production Lausanne Welcome to Smart Cuts We’re here to help you speak through light, color and sound. Video, animation, virtual reality, interactive designs, events coverage, live web-streaming and much more. We do it right and we do it at a great price. But don't just take it from us: Video production Video is the core of our business. Smart Cuts provides experienced producers and camera crews for the following services:          Concep...

Mar 15, 18, 11 Months Ago Via mohammadsher1000 In Business

Office 365 Business Promo Code Brings You the Best Deal to Download the Office Tools

This latest office 365 business comes with all the familiar tools like Word, Excel, Power point, OneNote, Access and outlook in the advanced version both for your PC and Mac. Using these best office tools you can easily capture your ideas onto word using a keyboard, touchscreen or pen and also format data in Excel or incorporate content into PDF files that are easy to access or share with your other team members. All these features can be availed in reduced price using the Office 365 Business Pr...

Mar 15, 18, 11 Months Ago Via cbleakley9 In Computers

Key Benefits of Using a Professional Airport Transfer Service

There are different factors involved in traveling that can get a person anxious and frustrated. The vacation is no different from the business trip when it comes to the level of stress and anxiety involved. However, by proper planning and execution, you can save your time and energy. An airport service can save you from the hassle of driving to the airport. Hiring an airport transport service comes with various benefits, therefore, choosing a reputable airport transfer company is your best optio...

Mar 15, 18, 11 Months Ago Via jamesjohn7289 In Business

Quickbooks Support Phone Number +1-844-438-3711

Contact Us For Live Quickbooks Support. We Deal In Bookkeeping Services, Company Payroll Services, Cost Accounting, Quickbooks Enterprise, Quickbooks Pos Support, Quickbooks Pro Support and other company related financial services. Visit Our Website- http://www.accountingexpert.net Our Toll Free No +1-844-438-3711 420 Montgomery Street. San Francisco, CA 94104   The Best Quickbooks Support For Error Free Financial Transactions QuickBooks is an important term connected to your business. A...

Mar 15, 18, 11 Months Ago Via jaquilinebert001 In Business

There are various reasons why a business owner takes the decision to part ways with the business enterprise they have dedicated their professions towards creating.For many people, common known reasons for selling a venture are retirement, attempting to move to another opportunity, or ailment. Therefore, you should carefully consider everything that should be done when you put your business on the market for sale.First of all, you will like to know what a buyer is ready to pay and how to sell you...

Mar 15, 18, 11 Months Ago Via bizprofitpro In Business

How are the factors to consider for Hiring Bookkeeping Services Long Island to keep your Accounts in order?

If you have a small business and need bookkeeping services, Long Island Bookkeeping Solutions will provide all the help. If you need they will provide training, software and tools necessary to handle bookkeeping accurately. They have been in service for over twenty years providing software and training to small businesses in the area.The software helps businesses to maintain accurate information from finances to payroll data. Since the bookkeeping solution is used umpteen times there can be no p...

Mar 15, 18, 11 Months Ago Via businesswork In Finance

Tag Cloud