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Commercial Equity Group quarterly newsletter. Visit www.commercialequity.com.au 

''Someone stole all my credit cards, but I won't be reporting it. The thief spends more than my wife did'' Henry Youngman 

2015 Budget Special

In the recent Budget you would probably be aware that the Australian Government will provide small businesses an immediate tax deduction for every asset they buy costing less than $20,000.So to take advantage of this CEG are now offering the following for loans up to $20,000.
  • Reduced Minimum $15,000 
  • Increased LVR 100%
  • Lower interest rate 17.4% 
  • (CEG normal credit assessment criteria applies)
       Click here for our application form          http://www.commercialequity.com.au/services/forms/ 

Debtor Funding vs Chattel Mortgage 

Most small businesses understand that cash flow is imperative to the success of the day to day operations of the business. Both debtor funding and chattel mortgage finance can assist when the business does not qualify for traditional bank finance.

In some cases debtor funding is not suited to all businesses. e.g. a single debtor business. The financier might even take over the entire debtor ledger, this may cause difficulties if a business wishes to remain in control of some accounts that are particularly sensitive or important to the business.

The Chattel Mortgage is a very flexible finance option, allowing you to access the equity in your existing plant and equipment to assist with your immediate cash flow needs. This facility has the advantage of allowing repayments to be structured over longer terms matching repayments to the business cash flow.

Click here for our funding options
 http://www.commercialequity.com.au/services/business-loans/

ATO Wind Up Blitz

In our 2014 winter newsletter we outlined the issues of the rising taxes currently owed to the Australian Taxation Office by small business. It would appear they are taking a hard line stance and issuing an increasing number of wind up notices.

Numerous businesses are at risk by having had no payment arrangement in place and allowing the tax debt to rise over $100k. External administration notices have been lower in previous years but with the current climate of increasing wind up notices this could result in turn with an increasing number of insolvencies.

If the ATO enters into a payment arrangement it is usually short term fix and can place undue pressure on the debt servicing abilities of the business.  

CEG can assist by allowing applicants to access equity in existing equipment to meet these tax obligations therefore alleviating the stress.  
 

Recent Case Studies
Transition of Assets $680,000

CEG was recently approached to assist with an inter-generational exchange of assets between family members with a heavy earth moving equipment company that had been established since 2007. Mitigating factors in this transaction were gained from the company gaining 100% of the existing contracts and revenue in the change over.  While the initial transaction did appear complex in structure, we then sought further clarity and gained a sound understanding of the submission allowing us to provide financial assistance.

Shareholder Buy Out $110,000

CEG was recently approached by a well established business looking to pay out a shareholder that wanted to leave the company. The company had sourced a majority of the funding required but required additional funding to complete the transaction. The company's historical figures were consistent and they have a range of contracts in place, by using the equity in a diverse range of security that was offered we were able to maintain an acceptable LVR and offer assistance. 


Our mailing address is:

P.O Box 1474 Launceston Tasmania 7250

PH 1800 234 346