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Category Archives: Advice

Insurance premium funding is a winner for SMEs

March 4, 2020
Insurance Premium Funding is a winner for SMEs

Australian consumers are regularly offered the option to manage their payments on a monthly basis – for utility bills, vehicle registration, installment plans on major purchases, health insurance and even their life insurance premiums. This takes some of the pain out of personal budgeting.

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Get help from a Finance Broker

January 14, 2020
Get help from a Finance Broker

The Australian lending market is flooded with many different types of loan products, and this poses several questions for hopeful small business borrowers, especially those who are time poor (and who isn’t?):

  • What kind of loan product do I need?
  • How much can I afford to borrow and repay?
  • Where can I get the best interest rate and other conditions?
  • How can I compare the available loans?
  • What does all the technical jargon mean?

This is where the finance broker comes in. A finance broker is an intermediary between the lender and borrower, arranging a loan in return for a fee.

How finance brokers can help small businesses

Capable finance brokers:

  • Have a detailed knowledge of the loan market
  • Are independent and not tied to any particular lender
  • Can assess your financial situation and needs and find suitable loan products with competitive interest rates
  • Explain any financial and legal terms in the documentation in simple language
  • Assist you throughout the loan application and settlement process, and beyond

Finance broker fees

Finance brokers act for the borrower, not the lender, but in the vast majority of cases it is the lending financial institution, not the borrower, who pays the broker’s commission fees.

Preparing to meet your broker

To get the best results, it’s a good idea to do some preparation before your first meeting with your broker. Plan to explain clearly what your business does, how it is structured, and who your main competitors are. Think about your business goals and targets, opportunities and risks, so that you can communicate these clearly. Be prepared to outline the purpose of the funds you hope to borrow – that is, provide details of how you will use the cash to help your business proper.

You should also take the following documents along to the meeting.

  • Latest financial statements: Your balance sheet and Profit & Loss statement, your cash flow statement, any management accounts, your budget or forecast for the coming year.
  • Business tax returns: The last two years’ returns.
  • Business Activity Statement: Take a year’s worth of BAS – the last annual statement, or the last four quarters.

Questions you should ask your broker

Your finance broker will certainly be asking you many questions, but there are also lots of questions you need to ask in return, including:

  • Would a line of credit, or a term loan, or lease finance, or some other form of finance, suit my particular needs best?
  • If you think a term loan is best, what term do you recommend?
  • How much do you think my business can afford to borrow and repay?
  • Will I need to offer property as security for the loan? Will it need to be my home or commercial property?
  • Should I be looking for a fixed or variable interest rate?
  • How many lenders do you work with?
  • Do you have testimonials from previous customers?
  • How much is your commission, and who will pay it, me or the lender?

While your broker may not be able to answer all of these questions at the first meeting, you should expect full responses before you commit to the recommended finance.

Talk to us now

We’re here to help you find the best finance solution to help your business grow.

Call us on 1300 732 201 or email us at info@linxaustraliagroup.com.au

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Maximise your harvest with agrictech

December 23, 2019
Maximise your harvest with agrictech

Technological developments in cropping are not exclusive to big players. Small agribusiness too can benefit from digital crop and soil mapping, measuring and forecasting, plus drones and blockchain.

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IT Trends of the Future That Are Worth Paying Attention to Today

November 26, 2019
IT Trends of the Future That Are Worth Paying Attention to Today

Every year, the Future Today Institute publishes a report on the IT trends of the future, which will affect various sectors of the economy. In 2019, the number of innovations mentioned in the forecast almost doubled compared with the previous year. Technologies are being developed faster and faster. In order for your business to keep up, you’ll want to pay attention to the latest IT trends. What innovations in the field of IT will be in demand in 2020 and how to apply the IT trends of the future to business development today?

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Marketing 101 – a keystone for building a financially successful business

November 15, 2019
Marketing 101 – a keystone for building a financially successful business

Just expecting your business to grow organically, and waiting for your customers to tell you what they want, will not work in today’s highly competitive marketplace. We have put together some essential marketing tips for our business customers, because we want to see you not just survive financially, but actually thrive in your business life.

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How SMEs can prepare for the New Year

November 8, 2019
How SMEs can prepare for the New Year

Starting 2020 on a good foot could be as easy as placing a careful and well prepared final step in 2019. Have you added an end of year plan for your business into your to-do list?

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November 2019 Economic Update

November 1, 2019
November 2019 Economic Update

You don’t need to be an economic genius to know that gold prices rise when investors seek a safe haven as protection against looming tough economic times. Gold prices have recently lifted to their highest point since 2013, with gold futures forecasting a steady rise over the next five years. The reason?

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Don’t waste the office IT budget – here are the essentials

October 24, 2019

The Fourth Industrial Revolution is being fuelled by information technology, making solid IT a necessity in the modern office. There are a number of quality tech products on the market, which means you can equip a small office with all the right gear for a relatively affordable sum. But with so many products to choose from, what do you actually need? Read on to learn exactly what tech will benefit your business.

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