synergy-business-finance

How Do Business Loans Work? A Comprehensive Guide for Entrepreneurs

brendanp@synergyconsolidated.com.au (Brendan Philp) — Thu, 27 Feb 2025 04:10:15 GMT

Business loans come with substantially lower interest rates than personal loans. A secured business loan will usually offer a single-digit interest rate, while personal loans are significantly higher. Another benefit of using fit-for-purpose business finance rather than personal loans is the flexibility in term length they offer. Business loans for SMEs can stretch to 30 years whilst personal loans typically range from 5 to 7 years which dramatically increases the monthly loan repayments.

There are tailored business facilities to meet all your business needs, from$5,000 for simple equipment up to several million dollars for business expansion or purchase.

This piece covers everything you should know about business loans in Australia. You will discover the different types of loans available and learn how to apply for them. The guide also walks you through the required documents and ways to handle your repayments well.

What is a Business Loan in Australia?

Looking to fund your business in Australia? A business loan gives you a well-laid-out way to access capital. The process works through a financial arrangement where a lender gives your business funds that you'll repay with interest over an agreed period.

Definition and Key Components

An Australian business loan has several core components:

Principal amount (the sum you borrow)
Interest rates (fixed or variable)
Repayment schedule (weekly, fortnightly, or monthly)
Loan term (ranging from 1 month to 30 years)
Associated fees and charges

Common Types of Business Loans Available

Your business can tap into funding solutions of all types that serve different purposes. Term loans give you lump sum amounts for big investments, while business lines of credit let you draw funds up to a pre-approved limit to assist with cash flow. Equipment finance helps you buy machinery or vehicles , and invoice financing lets you borrow against unpaid invoices.

Secured vs Unsecured Business Loans

The biggest difference between secured and unsecured business loans comes down to collateral. Secured loans need you to provide assets as security, which could include:

Property
Vehicles
Business equipment

Secured loans offer better rates because they're backed by collateral. However, unsecured loans might work better if you need quick access to smaller amounts. Some lenders can approve these loans within 24 hours.

Lenders will look at your business's financial health before approving either type of loan. They check your annual revenue, time in business, and creditworthiness. A solid business plan and financial documentation can boost your application chances, whatever option you pick.

Understanding How Business Loans Work

You need to understand how business lending works to make smart decisions about your company's financial future. Let's see how these loans work in real life.

The Basic Mechanics of Business Lending

Business lending follows a well-laid-out process where you get funds and agree to pay them back with interest. Interest on your loan is calculated daily and usually charged monthly. To calculate your daily interest you multiply the daily interest by the loan balance and then divide this figure by 365. The amount you can borrow depends on your business's financial health. Lenders look at your revenue, cash flow , existing liabilities and commitments, how long the business has been operating and overall creditworthiness.

Interest Rates and Repayment Structures

Changes depending on market conditions and is linked to the Reserve Bank of Australia’s Cash Rate

Consists of a benchmark rate plus margin. Can increase or decrease depending on market movements.

Understanding your repayment obligations is vital. The loan agreement lists:

Payment frequency (monthly, quarterly, or yearly). For businesses with seasonal income, repayments can sometimes be scheduled to align with the income-producing periods.
Regular repayment amounts
Final repayment date requirements

Key Terms and Conditions to Understand

Your loan agreement spells out several significant conditions you need to think about:

The approved loan amount.
Interest rate - fixed or variable.
Default interest - if you fail to make repayments as agreed, the loan agreement will provide a default or penalty interest rate to be applied.
Fees.
Payment arrangements.
Whether you can make extra repayments or pay the loan out early.
Security - details of the security provided as collateral to secure the loan.
Guarantees - many business loans will require a General Security Agreement (GSA) which provides that the lender has a security interest in the borrower’s personal property. This provides extra security for the lender. Real property includes land and buildings (immovable) whilst personal property relates to everything else such as equipment and vehicles. Director guarantees may also be required for the loan.

The Business Loan Application Process

A correct business loan application can speed up the approval process. Let's get into what you need to prepare and understand about the application experience.

Recommended Read: A Guide on How to Get a Business Loan in Australia

Required Documentation and Preparation

Your loan application needs several key documents. Australian lenders typically ask for:

Identification
Financial statements (2 years)
Income proof
Tax returns & BAS statements
Bank statements
Business plan
Credit history
Cash flow projections

Credit Assessment Criteria

Lenders assess your application using the four Cs of credit:

Character: Your business experience and credit history
Capacity: Your ability to repay the loan
Collateral: Assets available to secure the loan
Capital: Your overall financial position to support the lending

Your credit assessment looks at both personal and business aspects. Lenders assess your business's financial health and credit history as well as your personal creditworthiness.

Timeline from Application to Funding

Business loan processing times vary based on several factors:

Traditional bank loans may take 2-6 weeks, while online lenders might approve loans within 24 hours. The total timeline depends on:

The purpose of the lending. A business purchase will take much longer than an overdraft application for an existing business due to the complexity of the transaction.
Your chosen lender type
Your documentation readiness
The loan amount and purpose

Traditional bank loans follow this general timeline:

Application submission and document gathering
Underwriting and assessment phase
Final approval and loan offer
Fund disbursement (2-5 working days after approval)

Note that incomplete applications or missing documents can extend these timelines. Your documentation should be accurate and up-to-date to speed up the process.

Managing Business Loan Repayments

A solid understanding of your obligations and proactive planning will help you manage your business loan repayments successfully. Managing repayments might feel overwhelming at first, but the right strategies make it easier to handle.

Understanding Your Repayment Obligations

Your loan agreement spells out specific repayment terms you must follow. The key to managing your business loan starts with accurate forecasting of monthly obligations and predicting future cash flow that ensures sufficient means for repayments.

Here's what your repayment structure has:

Principal and interest calculations
Payment frequency options
Late payment penalties
Early repayment conditions

Strategies for Successful Loan Management

Automatic payments help you avoid missed deadlines and potential late fees. Making extra payments during peak earning seasons can reduce your overall loan burden effectively.

Dealing with Financial Challenges

Financial difficulties may arise, but you have several ways to handle them. Missing a repayment can lead to late fees and damage your business and personal credit score. If you expect challenges in meeting your repayment obligations, proactive communication with your lender is vital. Remember, bad news never gets better with time.

These approaches work well for managing financial difficulties:

Forecasting income and expenses to ensure sufficient cash flow
Building a financial cushion for unexpected expenses
Maintaining open communication with your lender
Learning about flexible repayment options

Your lender might offer these solutions if you struggle with repayments:

Temporary payment reductions
Loan term extensions
Debt restructuring options
Fee concessions

While reduced payments provide temporary relief, you'll need to make up the difference later. Keep a close eye on your cash flow and stay in regular contact with your lender until you establish a solid repayment routine.

Calculating Affordable Loan Amounts

Steps to calculate an affordable loan amount:

Review your current income and expenses – Ensure your business generates enough profit to cover potential loan repayments.
Forecast future cash flows – Consider projected revenue and seasonal variations that might impact repayment ability.
Calculate your Loan-to-Value Ratio (LVR) – For secured loans, LVR measures the loan amount as a percentage of your asset's value. To calculate:

LVR (%) = (Loan Amount ÷ Asset Value) × 100

Example: If your loan amount is $100,000 and your asset (e.g., property) is valued at $200,000, your LVR is 50%. Lower LVRs typically mean less risk for lenders, which can lead to better loan terms.

Determine maximum affordable repayments – Use cash flow forecasts to ensure repayments won’t strain operations. Some businesses align repayment schedules with peak revenue periods to improve affordability.

Evaluating Different Lender Options

Each lender's requirements help you pick the most suitable option for your business. Different lenders typically offer:

When analysing lender options, focus on:

Interest rate structures
Loan terms and conditions
Processing timeframes
Documentation requirements

Secured business loans will give you better interest rates than unsecured options. You should weigh this advantage against the risk of offering assets as security.

Your unique situation will point to the right choice. Your business's size, trading history, location, and budget limits play vital roles in this decision. A strong, current business plan should clearly show your fund usage and repayment strategy.

Note that each loan type has different tax and GST implications, so check the product disclosure information before applying. A business adviser or accountant can help you make an informed decision about your business's financial future.

Partnering with Synergy Business Finance

Understanding business loans is important, but going through your options doesn’t have to be complicated. Synergy Business Finance simplifies the process by matching you with funding solutions that fit your goals.

What makes us unique? We partner with Synergy Accountants to provide a holistic service . This means you’ll have expert guidance in securing finance and managing your business’s broader financial needs.

Whether you’re managing cash flow or planning for growth, we’ll guide you through the details and help you make informed decisions. Focus on your business—let us handle the finances.

Get in touch .

Low Doc Car Loans: Vehicle Financing for Self-Employed & Business Owners Explained

brendanp@synergyconsolidated.com.au (Brendan Philp) — Wed, 12 Feb 2025 04:08:22 GMT

For self-employed individuals and business owners, securing a car loan can be challenging, especially when traditional lenders require extensive financial documentation. Low documentation (low doc) car loans offer a flexible solution, enabling those with non-traditional income streams to access vehicle financing without the need for full financial records.

This guide explores everything you need to know about low doc car loans, their benefits, eligibility criteria, and potential drawbacks.

What Are Low Doc Car Loans?

A low doc car loan is a financing option designed for self-employed professionals and business owners who lack traditional proof of income, such as tax returns or full financial statements. These loans allow borrowers to use alternative forms of income verification, such as bank statements, Business Activity Statements (BAS), or accountant declarations, to secure funding for a vehicle purchase.

Unlike standard car loans , which require extensive financial records, low doc car loans simplify the application process, making them accessible to individuals with irregular income or those who have recently started a business.

Key Features of Low Doc Car Loans

1. Reduced Documentation Requirements

Traditional car loans typically require tax returns , pay slips, and comprehensive financial records. In contrast, low doc car loans allow borrowers to provide alternative documents, such as:

Business bank statements
BAS statements
An accountant's letter confirming income
Business cash flow statements

This flexibility makes low doc car loans particularly attractive for entrepreneurs, freelancers, and sole traders who may not have up-to-date financials.

2. Loan Amounts & Terms

Low doc car loans generally range from $10,000 to $250,000 , depending on the lender. The repayment terms typically span 1 to 7 years , allowing borrowers to choose a timeframe that suits their financial situation. Some lenders also offer balloon payments, which allow borrowers to reduce their monthly repayments by paying a larger sum at the end of the loan term.

3. Flexible Vehicle Options

These loans can be used to finance various types of vehicles , including:

New and used cars
Vans and utes
Trucks and heavy vehicles
Equipment vehicles for business use

The financed vehicle can be purchased from either a dealership or a private seller, depending on the lender’s policies.

4. Interest Rates & Repayment Structures

Interest rates on low doc car loans tend to be slightly higher than traditional loans due to the increased risk associated with alternative income verification. However, competitive rates are still available for borrowers with strong financial standing. Repayment structures are typically fixed-rate, ensuring predictable monthly payments throughout the loan term.

Eligibility Criteria for Low Doc Car Loans

While low doc car loans require fewer documents, lenders still have certain eligibility criteria that borrowers must meet. These include:

Active Australian Business Number (ABN) – The borrower must have an active ABN, as these loans are designed for business purposes.
Minimum Business Operating Period – Many lenders require businesses to be operating for at least 12 months, though some may consider newer businesses with strong cash flow .
Vehicle Used for Business Purposes – The car must be used for at least 50% business-related activities.
Alternative Income Verification – Lenders typically request alternative proof of income, such as bank statements or BAS, to assess financial stability.

Benefits of Low Doc Car Loans

1. Easier Access to Finance

Self-employed individuals often struggle to meet the documentation requirements of traditional car loans. Low doc car loans bridge this gap, providing an accessible financing solution without the hassle of extensive paperwork.

2. Faster Approval Process

With fewer documentation requirements, the approval process is generally quicker than standard loans. Many lenders offer pre-approvals within 24 to 48 hours.

3. Flexible Loan Structures

Borrowers can choose from various repayment options, including fixed interest rates and balloon payments, to suit their cash flow and budgeting needs.

4. Potential Tax Benefits

For business owners, the interest and fees associated with low doc car loans may be tax-deductible, provided the vehicle is used primarily for business purposes. Consulting with a tax advisor can help determine specific deductions.

Considerations & Potential Drawbacks

1. Higher Interest Rates

Since low doc car loans carry a higher risk for lenders, interest rates may be slightly elevated compared to standard car loans. It’s important to compare lenders and negotiate the best possible rate.

2. Stricter Loan Terms

Some lenders may impose restrictions on loan amounts, repayment periods, and vehicle eligibility. Borrowers should review all terms carefully before committing.

3. Limited Lender Availability

Not all banks and financial institutions offer low doc car loans, which can limit options. However, specialized lenders and brokers can help secure suitable deals.

4. Possible Requirement for a Larger Deposit

Some lenders may require a larger upfront deposit to mitigate risk, which can increase the initial financial burden.

How to Apply for a Low Doc Car Loan

Step 1: Assess Your Financial Situation

Before applying, evaluate your financial position and ensure you meet the lender’s eligibility criteria. Having bank statements and other alternative financial documents ready can streamline the process.

Step 2: Compare Lenders & Loan Terms

Different lenders offer varying interest rates and terms. Comparing multiple options ensures you secure the best deal for your circumstances.

Step 3: Gather Required Documents

Since low doc car loans require alternative documentation, prepare the necessary paperwork, including:

Business bank statements (3-6 months)
BAS or accountant's letter
ABN and business registration details

Step 4: Submit Your Application

Once all documents are prepared, submit your loan application online or through a broker. Some lenders offer same-day pre-approval.

Step 5: Loan Approval & Vehicle Purchase

After approval, the lender will finalise the loan agreement, and funds will be disbursed directly to the seller or dealership. Borrowers can then take ownership of the vehicle.

How Synergy Business Finance Can Help

Synergy Business Finance specialises in helping self-employed individuals and business owners secure low doc car loans with minimal hassle. Our expertise in business finance means we can:

Connect you with a wide network of lenders to find the best rates and terms.
Assist with alternative income verification to strengthen your loan application.
Offer tailored financing solutions , including chattel mortgages and leasing options.
Streamline the approval process , ensuring fast and efficient loan approvals.
Provide ongoing support , helping you navigate repayments and refinancing options.

You can access expert guidance and financing solutions tailored to your unique business needs by partnering with Synergy Business Finance. Visit Synergy Business Finance to explore your options and secure your next vehicle with confidence.

Get In Touch

Equipment Loans Explained: What Every Australian Business Needs to Know

Wed, 22 Jan 2025 08:05:33 GMT

Business growth demands new equipment. Yet many businesses struggle to buy what they need without draining their working capital. Equipment loans offer a solution that helps companies acquire heavy machinery, business vehicles, and the technology they need.

The world of equipment financing can seem complex at first. Australian businesses can choose from several options, including business equipment loans, leases and term loans. We created this article to make equipment finance easier to understand and show how it works for your business.

This guide covers everything about equipment loans. You'll learn about financing options and what to think about before applying.

What Is an Equipment Loan?

Let's explain what an equipment loan means to your business. This specialised type of business finance helps you buy essential equipment without paying everything upfront.

The equipment itself serves as security for the loan, which makes these loans special. This benefit means you can usually get 100% of the funding without extra collateral.

Your equipment loan can help you finance the following:

IT systems and tech equipment
Machinery and tools
Company vehicles
Commercial kitchen equipment
Specialised industry equipment

The lender registers a security interest over the asset in the Personal Property Securities Register, but you own the equipment right away. You can use your new equipment immediately while spreading the cost over time.

Equipment loans have grown more popular lately. They make up more than 90% of current asset financing. This makes sense, too, given the tax benefits . The interest payments and asset depreciation are usually tax deductible when you use the asset in your business.

Small businesses love these loans because they offer lower interest rates than unsecured business loans. The equipment acts as collateral and reduces the lender's risk. You can also adjust the repayment schedule to match your business's cash flow.

Equipment financing helps keep your working capital intact. Rather than using all your funds on one big purchase, you can keep cash available for other important business needs like payroll, marketing, or managing inventory.

How Do Equipment Loans Work in Australia?

Let us explain how equipment loans work in Australia's business world. You start by evaluating your equipment needs and getting your documents ready.

New businesses that want equipment finance should prepare these items:

A detailed business plan
Cash flow projections
Business Activity Statement (BAS)
Interim financial statements
Any existing customer contracts

Your equipment's value determines the loan amount and terms. The funding terms generally range from 24 to 60 months. Businesses can get funding for their equipment's full cost without any upfront deposit, which makes it an attractive option.

Mid-sized businesses use equipment finance extensively. Companies with revenue between AUD 15.29m and AUD 152.90m generally show the highest interest. The interest rates vary between 7% and 30% (rates depend on factors like creditworthiness, loan type, and lender). Fixed repayment schedules help you manage your budget better.

The flexibility in repayment structures makes this option practical. Your business can match repayment patterns with seasonal cash flow changes. Some companies choose lower monthly payments and add a larger balloon payment at the end.

Lenders process these loans faster than traditional ones. Some can approve applications within 24 hours. This quick response is vital when business opportunities need swift action. Your business must be based, registered, and operating in Australia to qualify. The equipment should be used for business purposes.

Different Types of Equipment Loans

Understanding different equipment financing options is important for Australian businesses to make the right choice. Let's explore the available equipment loan types.

Chattel Mortgage

Business owners often choose chattel mortgages for equipment financing. Your business owns the equipment immediately, while the lender holds a security interest. Interest rates stay lower than those of unsecured loans, and businesses can claim both interest and depreciation costs as tax deductions.

Hire Purchase

Many businesses find hire purchase arrangements beneficial. Under a hire purchase agreement, the lender buys the equipment and gives your business possession and use of the equipment with regular payments. Once the final payment is made, the ownership of the equipment is transferred to the business. Generally, interest on payments and depreciation can be claimed. Businesses can spread payments across 12 to 60 months with flexible instalments that match their cash flow.

Leasing vs. Buying

Leasing equipment allows a business to use equipment, usually a vehicle, for an agreed time in return for regular payments. The business does not own the vehicle, although they may have an option to purchase it at the end of the lease.

The choice between leasing and buying depends on several factors:

Leasing Benefits

Lower upfront costs with monthly repayments
Equipment upgrades every 2-3 years
Maintenance is often covered by lease agreement

Buying Benefits

Full ownership and asset equity
Equipment can be modified as needed
Option to sell when no longer needed

Things to Consider Before Applying for an Equipment Loan

Our experience with equipment loans has taught us several significant factors you should think over before signing on the dotted line. Good planning makes a real difference in getting the right financing for your business.

Getting a full picture of your equipment needs should be your first step. Ask yourself: Will this equipment streamline processes, cut costs, or create new revenue streams? Make sure the benefits exceed your financing costs.

The total cost of ownership needs your attention. It is often more than just the purchase price:

Maintenance and operational costs
Insurance requirements
Training expenses for staff
Storage considerations

Cash Flow Considerations

Your cash flow forecast is vital in picking the right financing structure for your business. Think about how seasonal changes in your revenue could affect your loan payments.

Documentation Preparation

You can speed up the loan process by having these key documents ready:

Business financial statements
Tax returns
Details of all current loans
Bank statements
Equipment cost documentation
Proof of ownership and relevant licenses

Interest and Terms

Take time to review interest rates and repayment terms carefully. Note that longer terms give you lower monthly payments but lead to higher overall interest charges. Some lenders provide special incentives or flexible payment plans that match your business's cash flow patterns.

Your equipment's expected lifespan and potential obsolescence can affect your decision by a lot. This influences whether you should lease or buy and helps determine the ideal length of your financing term.

How Synergy Business Finance Can Help You

Our team at Synergy Business Finance takes the guesswork out of finding the right equipment loan. With our guidance, you’ll gain access to tailored finance solutions, competitive interest rates, and repayment options designed to fit your business’s unique cash flow patterns. Whether you’re a startup or an established business, our personalised approach ensures you’ll make confident, informed decisions.

Commercial Loan: What It Is, Types & How It Works

Fri, 29 Nov 2024 04:17:14 GMT

A commercial loan, and particularly a commercial property loan, is often assumed to be a complex financial agreement that requires commercial and financial expertise. That is not the case, and the purpose of this article is to offer a more universal understanding of what a commercial loan is, different types of commercial loans and how a commercial loan works, including how it could benefit your business.

Many business owners are hesitant of utilising a commercial loan (also known as a business loan ), which is understandable when you consider the pressure - particularly around finances - that they face. However, an increased understanding of different commercial loan opportunities could be the step that relieves financial pressure in many small-to-medium businesses. That’s what we’re here to help with: understanding the options available to you and how you can use them to your advantage.

What Is a Commercial Loan?

A commercial loan is usually a strategy businesses use to fund major expenditures, such as new properties or new equipment, through a bank or financial service provider. Essentially, a business leverages the financial power of a bank to fund capital purchases, operating costs and expenditures. Depending on the business need and type of loan, commercial loans can range from short-term to 30 years.

What Would This Look Like For Your Business?

Let’s say that you are the owner of a rapidly growing business and you are expanding to a second office. You may need to take out a short-term 5 year commercial loan, which provides the funds to establish the office and assist with operating expenses. Alternatively, you may be in a position to purchase the second office through a commercial property loan which can have a term of 15-30 years and is secured by the new property.

To put this into the context of more common types of loans that you may be familiar with, think about a growing family leveraging residential mortgages to move into a larger home. Buying the home outright is unlikely to be an option, but a home loan would be considered a wise decision in this situation.

Types of Commercial Loan

There are many different loan types, with each option offering different benefits depending on your business’s needs and the purpose of the loan. The more commercial loan options you’re aware of, and the better you understand each one, the easier it will be for you to make the best decision about the type of loan for your business.

Commercial Property Loan

A commercial property loan is- a loan used to purchase commercial property. This can be utilised when looking to buy real estate as an owner occupied business site (i.e. an office space for your staff to operate from) or as an investment . There are some significant differences between commercial property loans and residential mortgages including:

How much the bank will lend against the value of the property
Commercial property loans usually require a General Security Agreement against the trading entity supporting the repayment of the loan which grants the lender a security interest in the borrower’s assets
Commercial property loans also require personal guarantees from company directors who are then liable for the debt should the company be unable to meet repayments
Traditionally commercial loan terms were limited to 15 years, however, in more recent times most loans under $3,000,000 can be taken over 30 years which helps minimise monthly repayments.

A commercial property loan is secured by the commercial property. How much you can borrow against the property depends on the type of commercial security, but as a general rule you can borrow 60% of the property's value. You will have to contribute the rest of the funds or have other security, such as a residential property or unencumbered commercial property, to complete the purchase.

Equipment Financing

If your business relies on expensive equipment, this can often severely stunt growth and expansion. Leveraging an equipment financing solution allows you to pay off the cost of the equipment over time, providing a more realistic and affordable business growth plan.

The loan is generally secured by the asset and a personal guarantee from the company’s directors. Loan terms can vary but are commonly 5 years and may include a balloon payment at the end of the term to help reduce monthly repayments.

Business Line of Credit

Any commercial loan comes with a degree of risk, but one major benefit of a business line of credit is reducing risk by not gaining one large lump sum. Instead, you can qualify for a maximum amount and only pay interest on the funds you drawdown. This is ideal for businesses that may sometimes need to access funds for operational costs (such as wages for new staff or upkeep of equipment) or receive income seasonally to help smooth out cash flow..

How a Commercial Loan Works

Generally, a commercial loan application is more complex than a personal or home loan. You need both a strong, valid purpose and evidence of financial performance through accountant prepared financial statements and tax returns to demonstrate you can meet repayments. Other considerations can include credit scores (both business and personal), whether the business has tax debt, evidence of future contracts, cash flow forecasts, available security and the level of existing debt.

How Big is the Risk For Your Business?

With or without a loan, any business investment is a risk. A common myth is that a business needs a perfect credit score and an extremely detailed, flawless business plan in order to be successful. In reality, the commercial lending market has a product for all businesses, whether you are a startup or a mature business looking to expand. Of course, the cost of lending will be more for riskier propositions such as a start up. Generally speaking, prime lending options will become available to a business once they have 2 years of trading under their belt and demonstrated profits.

Whilst commercial lending is generally not covered by the National Consumer Credit Protection Act which protects regulated lending for consumers, you can be confident that your broker and lender must still ensure that you can meet the loan repayments without undue hardship and the bank must comply with the Banking Code of Practice. When considering to offer credit, the four principles of credit will always be applied:

Character - credit history, business experience, legal issues etc…
Capacity - can you repay the debt?
Collateral - what security is available to secure the loan?
Capital - what is your overall financial position?

Benefits for Your Business

Investing in Growth Opportunities

It’s all too common for businesses to find themselves with fantastic growth opportunities that they simply don’t have the financial freedom to take advantage of without a commercial loan. Missing out on potential growth opportunities due to a lack of capital isn’t just frustrating - it can also be seriously costly if the business can’t sustain growth without that investment.

Increased Market Share

Leading on from capitalising on those growth opportunities, a commercial loan gives a business the ability to drastically increase its market share and profitability. This can help bridge the gap between growing businesses and the businesses that already dominate the market. Increased market share ultimately unlocks more financial flexibility and power in the future.

What You Can Do For Your Business

We can’t over-emphasise the importance of research before applying for a commercial loan. This can be a daunting decision for business owners and directors, especially when you don’t know where to start. That’s why turning to expert advice is the best next move for you. Expert advice helps you make a commercial loan decision that is:

A safer investment
Better for business growth
Tailored to your specific business needs

Fortunately, we have a team of experts that can help you with exactly that. You can speak to one of our experts for advice about your commercial loan needs and decisions.

Commercial Property Investment Guide For Beginners

Thu, 31 Oct 2024 04:54:58 GMT

Thinking about stepping into the world of commercial property? You’re not alone! Many Aussies are looking to this investment avenue for passive income and some solid returns over time. But before you get into it, getting a grip on the basics is important. Let’s unpack what commercial property investment is all about.

Why Should You Invest in Commercial Property?

Commercial properties can be a goldmine for those looking for higher cash flow than residential real estate; here’s why it might be worth your while:

Higher Yields : The commercial market in Australia has tightened recently, leading to yield compression. Simply put, your potential for capital growth is on the up.
Long Leases : Many commercial properties come with leases that last three, five, or even more than ten years. This gives you the chance to lock in annual rental increases, which is a great way to boost your income.
Reliable Tenants : Commercial tenants often have more at stake than residential ones (they have a reputation to uphold and maintain), which means they’re usually more dependable when it comes to paying rent and handling outgoings than residential tenants.
Fast-Track Your Cash Flow : With some commercial loans, you might pay them off in as little as ten years. After that, the income flows straight into your pocket—pretty sweet!

Commercial Property Investments 101

So, what exactly is a commercial property investment? Luckily, It’s pretty straightforward. A commercial property is any real estate primarily used for business purposes to generate profit. This could be an office, a retail shop, or an industrial warehouse (and there are even more specialised options like medical centres and hotels).

Commercial Properties: 4 Different Types

Commercial properties generally fall into four main categories. Each one has its own risks and rewards, and it’s a good idea to get familiar with them before investing.

1. Office Space

Office spaces range from tall towers in the CBD to smaller offices in the suburbs. When considering an office investment, pay attention to:

Location : Is it near food outlets, similar businesses, and public transport? These amenities can attract quality tenants.
Workplace Trends : For example, flexible workspaces have gained popularity, so consider how your property fits into this trend.
Well-Kept: Tenants have to finance any repairs themselves, which is why it's a good idea to save on this as much as you can.

2. Industrial Property

Industrial properties can be small warehouses or massive distribution centres. Key considerations include:

Access to Transport : Good road networks and proximity to ports are essential for logistics and distribution.
Flexibility : Industrial spaces that can adapt to different uses or expand in the future are often more appealing.
Well-Kept: Again, this space should be well-maintained and preferably already have a kitchen, office area, and bathrooms.
Loading Zone: It is a bonus if this area already has an external loading bay that can accommodate heavy vehicles with suitable height limits.

3. Retail Property

Retail properties can be anything from an entire mall to a small restaurant space. Factors that influence retail investments should include:

Consumer Confidence : People who feel good about the economy are more likely to spend money, so try to get as close to spaces that already attract individuals with disposable incomes.
Tenant Quality : Strong anchor tenants can draw customers and keep vacancy rates low.
Potential for Growth: It is a good idea to invest in a retail property with a high potential for growth (for example, a high-population growth location).

4. Speciality Property

Specialty properties could be anything from educational institutions to churches. When looking at these investments, think about:

Market Saturation : If there are too many similar properties in the area, your investment could face stiff competition.
Tenant Stability : A solid lease with a reliable tenant is crucial for long-term success.

The Secret Sauce to Investing in Commercial Property

While we discussed the different types of commercial property investment, we listed some factors to keep in mind when making your decision. Below, you'll find a handy checklist to do just that.

Location

Location is everything in commercial property; it can truly make or break your investment. Depending on the type of commercial investment, you’ll need to evaluate different location criteria.

Building Condition

Look for modern buildings with well-maintained exteriors and interiors. This can save you on repair costs down the line, as tenants usually handle upkeep in commercial leases.

Vacancy Rates

Vacancy rates can tell you a lot about an area’s health. High vacancy rates may indicate trouble attracting new tenants. But don’t forget that some commercial properties can still be valuable even when they’re vacant—many businesses choose to buy the properties they operate from.

Tenants

The strength of your lease is often tied to the quality of your tenants. Look for businesses with a history of long-term leasing—this usually indicates a strong performance. For example, a dentist or a beauty salon is less likely to move if they’ve built a loyal customer base.

Adding Value to Your Commercial Investment

Buy Under Market Value : If you can snag a property below its market value, you’ve instantly increased your investment’s worth.
Maximise Space : Some tenants might create additional space by building mezzanines or partitions. Utilising the property space efficiently , could improve your property’s value.
Strengthen Amenities : Adding storage or parking spaces will most likely be desirable for tenants and can lead to longer leases and higher rental returns.
Rental Increases : Most commercial contracts include fixed annual rent increases, typically around 3-4%, which can boost cash flow over time.
Lengthen Leases : A longer lease can improve security and increase your property’s value, making it more attractive to future investors.

Investing in Commercial Property in Australia

So, how do you get started with commercial property investing in Australia? For starters, partnering with a business finance manager and accountant can be a game-changer. Below is a step-by-step guide to help you on your journey.

Looking for a professional to help you find the right loan or lease while negotiating optimal terms and conditions? Look no further. At Synergy Business Finance, we focus on a long-term, strategic approach while working across both the accounting and finance outcomes.

Talk To Experts

1. Do Your Homework

If you have a buyer’s agent, they will research potential tenants and their business histories. How long have they been in business? Have they been consistent with rent payments? Remember, in commercial property, your tenant is everything.

2. Understand the Types of Investments

A good business finance manager will help you understand the different types of commercial properties and the associated risks and benefits. Each asset class fits into a broader market cycle, so it’s important to grasp where your investment stands.

3. Know Your Locations

Your business finance manager should have a solid grasp of the market values in your desired areas, including rental prices and upcoming infrastructure projects, in order to make an informed decision.

4. Source Properties

Experienced business finance managers often have access to a vast network and can uncover off-market properties. These hidden gems can mean less competition for you.

5. Navigate the Sales Process

Your business finance manager will guide you through the sales process, helping with financing options and negotiating contract terms - Having an expert like us in your corner will save you time and headaches.

6. Long-Term Support

Even after the sale, a good business finance manager will continue to support you, ensuring you maximise your cash flow over the long haul.

Sooner Passive Income: High-quality commercial properties can pay themselves off in about ten years. Once that debt is cleared, the cash flow goes directly to you.

Higher Rental Income: Commercial properties typically offer higher yields than residential properties.

Flexible Lease Terms: With commercial contracts, you can negotiate terms that work for you, leading to better deals; a business finance manager can help you make the most of this.

Tenant Pays Outgoings: Unlike residential properties, where landlords often shoulder costs like water rates and maintenance, most commercial tenants cover these expenses.

Longer Leases: Commercial lease terms can range from three years to as long as fifteen, providing stability and predictability.

Quality Tenants: Business tenants have a vested interest in the property, which usually means they’ll take better care of it and are more likely to pay rent on time.

Annual Rent Increases: Most commercial leases include fixed annual rent increases, which can contribute significantly to your cash flow.

Tax Benefits: Commercial property investors may be able to claim substantial tax benefits including depreciation and GST, boosting overall returns.

Accessible for All Investors: Commercial properties, from smaller warehouses to larger shopping centres, are available in various price ranges.

The Cons of Commercial Property Compared to Residential

Higher Deposits: Be prepared to put down a larger deposit for commercial properties. Lending ratios are typically 60-70% of the property value compared to 80% and potentially higher for residential property.

Complicated Lease Terms: Commercial leases can be complex and require thorough negotiation.

Economic Sensitivity: Commercial properties can be more sensitive to economic changes. If the economy takes a hit, your tenants may struggle, affecting your cash flow.

Lengthy Tenant Commitments: While long leases can be a pro, they can also be a con if you need flexibility (ensure you’re comfortable with the commitment).

Limited Financing Options: Finding the right financing can be trickier for commercial properties, and you may face stricter lending criteria.

Top Things To Know Before Applying for a Business Car Loan

brendanp@synergyconsolidated.com.au (Brendan Philp) — Fri, 27 Sep 2024 00:43:13 GMT

Need to buy a business vehicle? In this article, we've jotted down everything you need to know before applying for a business car loan, including business car loan terms, types of loans, eligibility requirements, tips, and more!

What Is a Business Car Loan?

A business car loan is a financing option for businesses to help them purchase necessary vehicles. Available through financial institutions or lenders, these loans are tailored specifically for acquiring vehicles for business use.

Business car loans have varying terms, interest rates, and repayment schedules. Common types include hire purchase agreements, finance leases, and chattel mortgages(a secured option in which the vehicle serves as collateral).

To qualify, you must be a business owner, self-employed, or need a vehicle primarily for business purposes.

Business Car Loan Terms

Business car loan terms typically range from one to five years, with repayments generally fixed throughout the loan period. Depending on the loan type, there may be an option for a balloon payment, allowing you to pay a residual amount at the end of the term, which helps keep monthly repayments lower.

Various financing options are available not only for business car loans but a whole range of assets you may need for your business, including:

Business vehicles
Heavy vehicles, trailers and dollies
Agriculture equipment
Earth moving equipment
Shop fitouts
IT equipment
Plant equipment

Your Synergy Business Finance Broker can guide you through these options to determine the best car or asset finance solution for your business goals and circumstances. Our team will help you find the right loan, chattel mortgage, or lease through our lenders while negotiating optimal terms and conditions.

Alternatively, you can request a call back from a specialist to discuss your needs and find the most suitable option for your business.

REQUEST A CALL

The Benefits of Getting a Business Car Loan

Obtaining a business car loan offers several advantages that can help you maintain cash flow while managing vehicle expenses. With flexible payment options, competitive interest rates, and the potential for balloon payments, this financing can be an effective solution for your business needs.

One significant benefit is the potential tax advantages of purchasing a vehicle through a business car loan.

For example:

You may be able to claim a tax deduction on the interest paid on your car loan repayments.
Government incentives, may apply when purchasing a business vehicle, although these can change over time, so it's essential to do due diligence or speak to your broker and accountant.
You can claim depreciation on the vehicle's value.
Business-related expenses, including fuel, registration, and insurance, may also be claimed.
Depending on your circumstances, you may be eligible to claim GST back when purchasing business vehicles or equipment used for commercial purposes.

We recommend you seek tax advice tailored to your situation to maximise these benefits.

SPEAK TO OUR TAX AND BUSINESS ADVISORS

Types of Business Car Loans Available

There are a couple of business car loan types you can apply for, each catering to different needs, which is why you should assess your business needs and financial situation before deciding on the best loan type:

Chattel Mortgage : This is the most common type of business car loan - In a chattel mortgage, the lender provides a loan for the business to purchase a vehicle, using the vehicle itself as security against the loan.
Hire Purchase Loans : With hire purchase loans, the car is leased from the lender for a fixed period. At the end of the term, the business has the option to purchase the vehicle outright.
Finance Lease : In a finance lease, the financier owns and leases the car to the borrower. However, ownership can be transferred to the borrower at the end of the lease, provided all contractual obligations have been fulfilled.

Eligibility Requirements for Obtaining a Business Car Loan

When applying for a business car loan, it's important to note that eligibility requirements can vary between financial providers. Here are some standard criteria (or documents you need to have), whether you are operating as a sole trader, company or trust:

A good credit rating is generally required.
Tax returns and business financial statements from the last two years.
Evidence of business activity and trading for at least 12 months and preferably 24 months.
A current Australian Business Number (ABN) registered for at least two years.
GST registration,

Got Rejected? Here's Why

Of course, nobody likes to face rejection, especially when you’re close to securing a loan for your business. Here are some common reasons why your business car loan application may be declined:

Large Tax Debt : While a significant tax debt may not result in an immediate rejection, it can negatively impact your chances of approval.
Excessive Existing Debt : Lenders may be reluctant to extend additional funds if you have too much debt from other loans or lines of credit (this situation may also affect your credit score).
Insufficient Cash Flow : Lenders will assess whether your business can service the loan. If you’re not generating a profit, they may question where the funds will come from to repay the loan, making them hesitant to extend credit.
Insufficient Time in Business : Although this isn’t always a dealbreaker, many lenders prefer to see at least 12 months of business performance and financial records. However, this requirement can vary by lender and loan type.

Tips to Get Approved for a Business Car Loan

Securing a business car loan can be a straightforward process if you follow these key tips:

Keep Your Finances Up to Date : Ensure your financial records are accurate and current; this gives lenders a clear picture of your business income and repayment ability, which can lead to a quicker and smoother approval process.
Maintain a Good Credit History : Your credit score plays a major role in the approval process. Lenders will examine your credit activity from the past five years, including any loans, debts, and repayment history (a strong credit score signals reliability to lenders).
Ensure You Have Enough Funds : Make sure your business has sufficient cash flow to cover not only the car loan but also additional costs like fuel, insurance, registration, and repairs. Lenders will evaluate your financial situation, so it’s better to confirm your financial readiness beforehand to avoid rejection.

A Simple Guide on How to Get a Business Loan in Australia

annabellk@synergyconsolidated.com.au (Annabell Kelly) — Mon, 26 Aug 2024 01:16:46 GMT

As you may already know, there are various types of business loans in Australia from which to choose. These may include equipment finance (otherwise known as chattel mortgage), overdrafts, and invoice finance. Usually, you can choose to pay a variable or fixed interest rate while selecting the best frequency of repayments for your situation (monthly, quarterly, or annually).

These business loans can help you manage your cash flow while funding your business's expansion and growth. A secured or unsecured business loan may be suitable if you're looking for start-up costs, capital investments, commercial property acquisition, or refinancing.

Before we dive into actually filling out your business loan application, we'll take a look at things you can do to improve your chances of success. This includes assessing financial forecasts, deciding on a type of loan, and gathering additional documents and paperwork, to name a few.

6 Steps Before Applying for a Business Loan

1. Assessing Your Funding Needs

First things first, before anything else can happen, you need to have a basic understanding of your business finances. In this section, we'll cover how to analyse your business finances and set up a cash flow statement. By doing this, you'll better understand your current business performance and identify areas for growth.

1.1 Analysing Business Finances

In order to properly analyse your business finances, take a closer look at the following financial documents of yours:

Budget: You should begin with your business budget; this is a statement that outlines the expected income and expenditure of a business within a particular period of time. With budgeting, you get to know the actual financial position of your business besides getting to compare your figures and hence identify areas that require adjustments.
Balance Sheet: The balance sheet offers a perspective of your business's financial situation in a certain period of time. It lists your assets, liabilities, and equity, helping you understand what your business owns versus what it owes. Analysing this document can help you determine your business’s net worth and ability to cover short-term obligations.
Statement of Cash Flow: Your cash flow statement tracks the cash flow in and out of your business over time. This document is important in analysing trends in the flow of cash, both inflow and outflow so that future cash flow requirements can be predicted.
Profit & Loss Statement: Another name for a profit and loss statement is an income statement; it presents a statement of your business’s revenue, cost, and expenses for a stated period.

While pulling together these documents, keep your eye on trends that may be unusual, as this would indicate areas that need improvement, including:

Low profit margin
Not staying within your spending budget
Existing business debt levels
Timeframes with low/ high cash flow

1.2 Setting Up a Cash Flow Statement

When developing your cash flow statement, you will be able to see your current business cash income, future cash income, actual expenses, and more.Cash Flow Forecasting In addition to tracking past and present cash flow, we can predict future financial resource needs. A cash flow forecast estimates your future sales and expenses, showing whether your business will generate enough income to cover its costs. By anticipating or knowing in advance about cash flow gaps, you can proactively avoid debt and maintain a healthy financial position.

To create a cash flow forecast, simply input estimated figures for future periods into your cash flow statement. Regularly updating this forecast will help you avoid financial challenges and take advantage of some opportunities.

Creating Your Cash Flow Statement

To begin, download any cash flow statement template . This template will help you document your cash flow data in terms of actual and expected ones. As you complete the statement, clearly label any estimated figures and state whether they are inclusive or exclusive of GST (Goods and Services Tax).

Completing Your Cash Flow Statement

Follow these steps to complete your cash flow statement:

Opening Balance:

In the first month, your opening balance is your starting bank balance. Use the closing balance from the previous month as your opening balance for subsequent months.

2. Cash Incoming:

Cash incoming encompasses all money that comes into your business. When forecasting, consider all potential/ anticipated income sources, including sales, debtor receipts, grants, and tax rebates . It is a good idea to look at previous years to identify seasonal trends and predict when money will come in.

3. Total Incoming:

Add up all incoming cash items to calculate the total incoming for the month.

4. Cash Outgoing:

Cash outgoing refers to all payments made by your business. Forecasting these figures requires you to anticipate necessary expenses, such as accountant fees, advertising, purchases, rent, and utilities. In order to avoid the same or similar expenditures and to be able to forecast the expenses that are likely to occur in the future, one should review the expenses that have been incurred in the past.

5. Total Outgoing:

Add up all the outgoing cash items to get the total outgoing for the month.

6. Monthly Cash Balance:

Calculate the monthly cash balance by subtracting the total outgoing from the total incoming.

7. Closing Balance:

Last but not least, the closing balance is determined by adding the opening balance to the total incoming and then subtracting the total outgoing. This closing balance becomes the opening balance for the next month.

2. Preparing a Business Plan

Often, potential lenders will want to see your business plan before lending money to understand your business goals and financial history. Above the goal of loaning money, having a business plan will help you prioritise efforts and learn about potential hurdles that might hinder success.

2.1 Tips to Develop Your Business Plan

1. Determine the Purpose of Your Business Plan

As you've landed on this page, we reckon that the purpose of your developing a business plan is so you can share it with potential business loan firms. However, you may have alternative reasons for developing your business plan (like guiding your internal team, for example). Understanding the audience for your plan will help you tailor it to meet their specific needs.

For instance, if you’re presenting the plan to lenders, they will be most interested in your financial projections, market analysis, and repayment strategies. Tailor your content to emphasise the most relevant information to the readers.

2. Prepare Your Finances

Your business plan must include a detailed financial section. This is especially important if you’re seeking financing. Lenders and investors need to see that your finances are well-organised and that your business is in a strong financial position.

This section should cover:

Current Financial Status: Outline how much capital your business currently has and how it has been allocated.
Funding Requirements: Clearly state how much money you need and why. Be realistic and specific to avoid asking for more than necessary.
Financial Projections: Provide forecasts of your expected revenue, expenses, and profits. If you’re a startup without historical financial data, use estimates but ensure they are grounded in research and reasonable assumptions.

3. Write Your Executive Summary Last

Even though it appears at the beginning of your business plan, the executive summary should be the last section you write. This summary entails the main points of your plan into a concise overview, highlighting your business, market, goals, and unique selling propositions.

Aim to capture the essence of your business in as few words as possible without omitting critical details. This section should grab the reader’s attention and make them want to learn more about your business.

4. Seek Professional Assistance

Writing a business plan requires time, research, and careful preparation. If you’re not confident in your ability to complete the plan yourself, consider seeking help from a professional. Business advisers, mentors, or coaches can provide valuable feedback and ensure your plan is thorough and well-presented.

5. Review and Update Your Plan Regularly

Your business plan is not static; it should evolve as your business grows and market conditions change. Regularly reviewing and updating your plan will help you stay focused on your goals and ensure your strategy remains relevant.

6. Protect Your Business Plan

When sharing your business plan with third parties, protecting your business’s confidential information is essential. Consider having recipients sign a confidentiality agreement if your plan contains innovative practices, products, or services.

Additionally, include a disclaimer in your plan asking readers not to disclose its contents. This added layer of protection can safeguard your business ideas and strategies from being shared or used without your consent.

2.2 Business Plan Template

Feel free to use our business plan template by making a copy and using it to save you time and resources.

Download Our Free Business Plan Template

3. Understand Your Financial Limitations

By understanding your financial limitations better, you'll be more capable of repaying any business loan. For this to happen, work out each of the following based on your business:

Determine whether you need access to funds upfront or can draw them as needed.
Calculate the maximum repayment cost you can comfortably manage.
Assess your loan-to-value ratio (LVR).
Identify business assets you can offer as collateral if required.
Consider who might be willing to guarantee your loan if a guarantor is necessary.
Evaluate how much equity you currently hold.
Decide the maximum percentage of your business you will offer investors.

4. Choose a Type of Business Loan

There are a lot of loan options available in Australia, which is why it's important to understand your business needs and align those with the best loan type. So, if you haven't already completed the above-mentioned steps, we suggest you do so now.

The choices you make will depend on factors such as your specific business requirements, the duration of the loan, and the terms associated with it.

Here’s an overview of some common business loan types in Australia:

4.1 Common Types of Business Loans

1. Business Loan

A business loan is a lump sum of money provided to your business, which you repay over a specified period. The terms of the loan, including the loan amount, interest rate, and repayment schedule, can vary widely. You can opt for a fixed or variable interest rate, depending on your financial situation.

Potential Benefits:

Flexibility to choose between fixed or variable interest rates.
Various repayment options, such as principal and interest or interest-only.
A clear and defined loan term allows for better financial planning.

Potential Disadvantages:

The loan must be repaid in full by the end of the agreed term.
No redraw option is available for fixed-rate loans.
The loan account cannot be used as a transaction account.
Lenders often prefer security, which may need to be linked to the loan.

2. Business Overdraft Facility

A business overdraft, or line of credit, is typically linked to your business transaction account. It allows you to access funds as needed, even when your account balance is low. You repay the overdraft with deposits back into the account, and interest is only charged on the amount used, not the total overdraft limit.

Potential Benefits:

Ideal for medium to long-term seasonal cash flow needs, such as stocking up during busy periods or hiring additional staff.
It can be directly linked to your business transaction account for ease of access.
No set expiry date, providing ongoing access to funds.
Interest is only charged on the borrowed amount.

Potential Disadvantages:

Generally, higher interest rates than standard business loans.
Interest rates are variable, which could lead to higher costs over time.
Lacks flexibility in repayment options, such as interest-only payments.
No defined repayment schedule, which could complicate financial planning.

3. Finance Lease

A finance lease allows you to use an asset, such as a car, machinery, or business equipment, for a fixed period. The lender purchases the physical asset on your behalf and leases it to you for the duration of the contract. At the end of the lease period, you can return the asset or make a residual payment to retain it.

Potential Benefits:

Flexibility to use an asset without needing to purchase it outright.
Repayments may be tax-deductible, reducing your overall taxable income.

Potential Disadvantages:

You do not own the asset; the lender retains ownership.
The asset must be returned at the end of the lease term unless you opt to pay the residual value.

4. Commercial Hire Purchase

A commercial hire purchase allows your business to acquire assets by making regular payments over an agreed period of time. The lender buys the asset on your behalf, and once all payments, including the final payment, are made, ownership is transferred to your business.

Potential Benefits:

You own the asset at the end of the term, allowing for long-term use and investment.
Both the interest on the finance and the asset depreciation may be tax-deductible.

Potential Disadvantages:

Ownership is only transferred at the end of the contract, meaning you don’t own the asset during the repayment period.
The financial commitment could impact your business's cash flow over time.

5. Chattel Mortgage

A chattel mortgage, often called a goods loan , is a popular option for financing assets like business vehicles and equipment. Your business purchases and owns the asset from the start of the loan term, with regular repayments made over an agreed period until the loan is fully repaid.

Potential Benefits:

You own the asset from the beginning of the loan term, giving you full control over its use.
The interest on the loan and depreciation of the asset may be tax-deductible.

Potential Disadvantages:

If you want to upgrade the asset, you must sell it yourself.
The financial commitment requires careful planning to ensure ongoing cash flow.

6. Invoice Finance

Also known as accounts receivable finance, invoice finance allows you to quickly access cash by using your outstanding invoices as collateral. Normally, you can access up to 85% of the value of your approved outstanding invoices.

Potential Benefits:

Supports cash flow by providing immediate funds to cover expenses.
Unpaid invoices can be ‘sold’ to the lender in exchange for cash, providing quick access to capital.
No additional security is required, as the invoice itself acts as collateral.
Funds are generally received within 24 business hours, offering rapid financial relief.

Potential Disadvantages:

You do not receive the full value of the invoice, as the lender retains a portion.
This option may lead to lower overall returns if frequently used.

5. Organising Financial Documents

In order to start your application process for a business loan (before speaking to a lender), you'll need to have the following documentation ready:

Proof of identification
Detailed business plan
Financial forecasts
Financial reports for the last 2 - 3 years (if this is available)
Personal income information/ proof
Ratio calculations

Ready to take your business to the next level with tailored lending solutions?

Explore Our Business Loans

6. Getting Expert Advice

It may happen that you don't feel confident answering complex financial questions when you apply for financing (or feel lost in this outlined process), which is why it's important to seek expert advice from trusted sources. The best way to ensure all your financial needs are met and to streamline the entire application process is by partnering with a trusted broker like our team at Synergy. We offer expert guidance on securing the right loan and provide comprehensive support.

With access to our accounting teams , we offer a unique combination that allows us to help with all aspects of the application and provide ongoing business advisory services, ensuring your financial strategy is solid and your business can thrive.

Speak To One Of Our Experts

After completing the six steps mentioned above, you're ready to apply for that business loan! The last tip we can give you is the following:

Weigh your different financing options: Although this might sound obvious, sometimes this step can be overlooked, and businesses can choose the seemingly better loan option. Find out more about interest rates that may change while ensuring you're loaning from a trusted finance provider.

Frequently Asked Questions

Is It Hard to Get a Business Loan in Australia?

Getting a business loan in Australia can be challenging, especially if your financials aren't strong or you lack collateral. However, many businesses can secure funding with proper preparation and a solid business plan.

How Much Deposit Do You Need for a Business Loan?

The deposit required for a business loan in Australia varies but is typically around 10% to 30% of the loan amount, depending on the lender and the type of loan.

How Many Years Should It Take to Pay Off a Business Loan?

The repayment period for a business loan usually ranges from 1 to 25 years, depending on the loan amount and terms, but most businesses aim to pay off loans within 3 to 5 years.

Secured Vs. Unsecured Loans: What's The Difference?

Secured loans require collateral and offer lower interest rates, but they carry the risk of asset loss if you default. Unsecured loans don’t require collateral but often have higher loan interest rates and stricter approval criteria.

Introducing Synergy Mortgage Brokers

Tue, 26 Mar 2024 23:23:44 GMT

We’re proud to introduce Synergy Mortgage Brokers, the newest brand of the Synergy Consolidated family.

With Synergy Mortgage Brokers, we’re continuing our commitment to providing personalised financial solutions tailored to your needs.

Navigating the mortgage market can be overwhelming, but with Synergy Mortgage Brokers , you can rest assured knowing that you have a dedicated team of experts by your side.

From negotiating competitive rates and favourable terms to providing insider knowledge and expert guidance, we’re committed to helping you secure the best possible outcome.

Whether you’re a first-time buyer, upgrading to your dream home, venturing into property investment, or are self employed we’re here to make the process seamless and stress-free for you.

Our team specialises in addressing complex family and income circumstances, ensuring that we find solutions that align with your unique situation.

We understand that every situation is unique, and we take the time to listen and understand your needs to find the best solutions for you. Our focus is on providing transparent and straightforward advice that helps you make informed decisions about your mortgage.

We’re excited to embark on this new chapter with you and look forward to the opportunity to serve you under our new brand.

Navigating Economic Changes: Australia's Latest Inflation Data

Wed, 31 Jan 2024 23:42:49 GMT

Australia's Latest Inflation Data

In the final quarter of 2023, the Australian Consumer Price Index (CPI) exhibited an increase of 0.6 percent, contributing to an annual rise of 4.1 percent, according to the latest data provided by the Australian Bureau of Statistics (ABS).

Michelle Marquardt, Head of Prices Statistics at ABS, noted that "The CPI's 0.6 percent uptick in the December quarter represents a slowdown from the 1.2 percent increase observed in the prior September quarter. This marks the smallest quarterly increment since the March 2021 quarter."

While prices continued their upward trajectory across most goods and services, the annual CPI inflation rate has eased from its zenith of 7.8 percent in December 2022 to a comparatively moderate 4.1 percent in December 2023.

Synergy Business Finance Director Brendan Philp shares his insights,

"In good news for mortgagors the Australian Bureau of Statistics (ABS) has released the latest Consumer Price Index (CPI) data. In the December 2023 quarter CPI only rose 0.6%, down from 1.2% in the September quarter. This is the smallest quarterly rise since March 2021. Annual trimmed mean inflation is now down to 4.2%, down form the peak of 6.8% in the December 2022 quarter.

With inflation trending down this will hopefully provide the RBA with the data to keep the cash rate stable in the short term with a reduction perhaps later in the year.

Whilst the headline quarterly CPI figure is good news, the contributing factors still indicate that many people will be dealing with a cost-of-living crisis. Housing increased by 1.0%, alcohol and tobacco by 2.8%, insurance by 3.8% and rent by 0.9% following a 2.2% increase in the September quarter. Given the continued squeeze on the family budget it has never been more important to seek expert advice from your accountant and finance broker to ensure you are informed and making the most of your money".

Weighted Average of Capital Cities

Key Contributors to Quarterly CPI Movement

In the December quarter, the most notable contributors to the rise in CPI were Housing (+1.0 percent), Alcohol and Tobacco (+2.8 percent), Insurance and Financial Services (+1.7 percent), and Food and Non-Alcoholic Beverages (+0.5 percent).

Within the Housing category, New Dwellings purchased by owner-occupiers saw a notable increase of 1.5 percent, with Rents (+0.9 percent) and Utilities (+0.6 percent) also contributing to the upward trend.

Ms. Marquardt explained, "Rising labor and material costs played a part in the price hikes observed in the construction of new dwellings, with the 1.5 percent increase slightly exceeding the 1.3 percent rise in the September 2023 quarter."

Changes in Rental Prices

Rental prices increased by 0.9 percent in the quarter, following a 2.2 percent rise in the preceding September quarter. These fluctuations were partly influenced by alterations to Commonwealth Rent Assistance. Excluding these changes, rental prices would have increased by 2.2 percent in the December 2023 quarter.

Factors Driving Tobacco and Insurance Costs

Tobacco prices witnessed a substantial rise of 7.0 percent, driven by the introduction of the 5 percent annual tobacco excise indexation and biannual Average Weekly Ordinary Time Earnings increase, both applied on September 1, 2023.

Insurance costs surged with a robust quarterly movement of 3.8 percent, following a 2.8 percent rise in the September 2023 quarter. This was attributed to higher premiums in motor vehicle, house, and home contents insurance. Over the past year, Insurance recorded an impressive 16.2 percent increase, marking the highest annual rise since March 2001.

Food and Non-Alcoholic Beverage Prices

While prices in this category did rise during the quarter, the increase was the smallest since September 2021. Notable contributors to the rise included Meals out and takeaway foods (+0.9 percent), Food products not elsewhere classified (+1.9 percent), and Bread and cereal products (+1.9 percent). Partially offsetting this quarterly rise were price reductions for Meat and seafood (-1.2 percent) and Fruit and vegetables (-1.2 percent).

Ms. Marquardt noted, "Meat and seafood prices experienced declines this quarter due to increased supply, leading to price drops of 12.1 percent for Lamb and goat and 1.5 percent for Beef and veal."

Annual Inflation Figures

On an annual basis, the CPI registered a 4.1 percent increase, with Housing (+6.1 percent), Food and Non-Alcoholic Beverages (+4.5 percent), and Alcohol and Tobacco (+6.6 percent) being the primary contributors.

Underlying Inflation Measures

To mitigate the influence of irregular or temporary price fluctuations in the CPI, underlying inflation measures are employed. Annual trimmed mean inflation was calculated at 4.2 percent, down from 5.1 percent in the September quarter. This represents the fourth consecutive quarter of declining annual trimmed mean inflation, having receded from its peak of 6.8 percent in the December 2022 quarter.

Monthly CPI Indicator

In addition to quarterly data, the ABS has also released the monthly CPI indicator for December. This indicator showed a 3.4 percent increase over the 12 months to December, in contrast to the 4.3 percent increase observed in the 12 months to November. Housing (+5.2 percent), Food and Non-Alcoholic Beverages (+4.0 percent), Alcohol and Tobacco (+6.8 percent), and Insurance and Financial Services (+8.2 percent) were the key drivers behind this rise.

Save the Date: Synergy Business Finance Annual Golf Day 2024!

Tue, 19 Dec 2023 06:09:44 GMT

Date: Friday, March 22, 2024
Venue: City Golf Club
Format: 4ball Ambrose
Prizes, Competitions, and Raffles
Coffee Cart Onsite

Join us for a fantastic day of golf, camaraderie, and giving back! Our Annual Golf Day is back, and next year, we're teeing off with even more excitement.

Bring your team of four for a day of golfing fun. Your team registration of $550 (inc GST) includes golf for four players, an electric golf cart, and a delicious lunch. Not only will you have a blast on the course, but you'll also have the chance to win fantastic team prizes and join in thrilling competitions and raffles.

For those looking to make an even bigger impact, we offer corporate sponsorship for $1,100 (inc GST). This includes all the benefits of team registration, plus valuable marketing opportunities.

Be part of an event that combines the love of golf with a great cause, with all funds raised going towards the Maddox's Helping Hand Foundation. Stay tuned for more details and the official launch of our event in January. In the meantime, mark your calendars, gather your team, and get ready for an unforgettable day of golf for a fantastic cause!

For more information or to register your interest, contact us today . Together, we can make a difference in our community while enjoying a day on the greens.

Angie Barnard Named Finalist in 2023 Connective Excellence Awards

Thu, 23 Nov 2023 23:38:58 GMT

We are thrilled to announce that our very own Managing Director, Angie Barnard , has been named a finalist in the prestigious 2023 Connective Excellence Awards in the Rising Star category.

This marks Angie's second consecutive year as a finalist, following her impressive nomination in the same category in 2022.

The Connective Excellence Awards are a testament to outstanding performance and dedication within the finance industry. Angie's continued recognition among the finalists is a reflection of her unwavering commitment to excellence and innovation.

Angie's leadership and vision have played an instrumental role in Synergy Consolidated's continued growth and success. Her commitment to providing exceptional financial solutions and service to our clients have set new standards within the industry.

We extend our warmest congratulations to Angie for her well-deserved recognition as a finalist in the 2023 Connective Excellence Awards. We eagerly anticipate the award ceremony and look forward to celebrating her accomplishments with our peers.

Stay tuned for further updates as we await the results of this prestigious award ceremony. We have our fingers crossed for Angie and wish her the best of luck in bringing home the Rising Star award in 2023!

Top For Unlock Savings with Refinancing

Mon, 10 Jul 2023 23:43:32 GMT

Refinancing your mortgage can be a smart financial move that helps you save money and achieve your goals.

At Synergy Business Finance, we understand the importance of finding the right refinancing solution tailored to your needs. If you're considering refinancing, here are some key points to consider:

Assess Your Financial Situation: Take a close look at your current mortgage terms, interest rate, and monthly payments. Evaluate your financial goals and determine if refinancing aligns with your objectives. Our team can help you assess your situation and provide guidance on the best course of action.

Understand Your Reasons: Identify why you want to refinance. It could be to secure a lower interest rate, access equity for other financial needs, consolidate debt, or change loan terms. Knowing your reasons will help you make informed decisions throughout the process.

Evaluate Potential Savings: Calculate the potential cost savings of refinancing. Compare the new interest rate, loan terms, and associated fees with your current mortgage. It's essential to ensure that the overall savings justify the refinancing process.

Explore Loan Options: Synergy Business Finance offers a range of loan options tailored to your needs. Whether you prefer fixed or variable rates, adjustable terms, or specific features, our team will guide you through the available options and help you find the right fit.

Consider the Impact on Your Credit Score: Understand that refinancing involves a credit check, which may have a temporary impact on your credit score. However, responsible management of your refinanced loan can ultimately improve your credit over time.

Factor in Costs and Fees: Take into account any discharge costs and fees associated with refinancing, such as discharge fees, application fees, legal fees, and other charges. Synergy Business Finance ensures transparency and clarity regarding these expenses, so you can make well-informed decisions.

Consult with Mortgage Professionals: Seek guidance from our experienced mortgage professionals who can assess your unique situation and help you make the best decisions. We provide personalised advice and support throughout the refinancing process, ensuring you have the information you need to make confident choices.

Consider Long-Term Goals: Reflect on your long-term financial goals and how refinancing fits into your overall strategy. Whether it's achieving homeownership, making investments, or managing debt, ensure that refinancing aligns with your plans.

Review Terms and Conditions: Thoroughly review the terms and conditions of the new loan. Pay attention to any packaged features such as offset accounts, extra payment fees, early payment options, and repayment flexibility. Understanding the details will help you make informed decisions about your refinanced loan.

Refinancing your mortgage can provide significant financial benefits. At Synergy Consolidated, we're dedicated to helping you unlock savings through refinancing.

Our team of experts is here to guide you through the process, provide personalised advice, and help you make sound financial decisions. Contact us today to explore your options and start your journey towards a stronger financial future.

Synergy Business Finance launches on-site Finance workshops

Wed, 17 May 2023 05:46:38 GMT

At Synergy Consolidated we have taken a proactive approach in recognising the importance of discussing and addressing mortgage stress, investing in property, and buying your first home within the current Australian economy by conducting on-site visits for our accounting clients and their teams.

We understand that financial stress for staff can be an added stressor in business, which is why we have added mortgage site visits and workshops to our services for our clients.

Last week, we embarked on an on-site visit to Novus Precast Specialists, a valued accounting client of ours. Our aim was to engage with their staff, facilitate open discussions, and share valuable information about navigating the complexities of the current Australian home mortgage market.

The visit proved to be a resounding success, with a remarkable response from the staff at Novus Precast Specialists. We brought along our beloved coffee cart, treating all attendees to delicious coffees before the presentation to ensure everyone was nice and caffeinated!

At Synergy Consolidated we have a client-centric approach to financial education. By engaging with clients on a personal level, offering informative presentations, and sharing the joy of our coffee cart, we believe that we are building strong relationships and providing valuable support and education.

Brendan Philp, Director of Synergy Business Finance, expressed his enthusiasm for these regular presentations, he stated, "We are really keen to continue with these presentations and help our clients with their staff welfare initiatives. "

This dedication to fostering ongoing education and creating an enjoyable experience reflects Synergy Consolidated's commitment to our clients' financial well-being.

At Synergy Business Finance, we want to help the broader community navigate the stresses of financial strain and how that comes to light within the team environment. Our goal is to provide support and guidance to individuals facing financial difficulties. Contact us today to book your teams financial workshop today!

What we've achieved | Refinance Case Studies 5 & 6

Tue, 18 Apr 2023 05:49:35 GMT

After ten consecutive months of rate rises, Australian’s have turned to refinancing to ease financial pressures.

Our Synergy Business Finance team have been reviewing a number of mortgages for our clients of late – here is a recap of some of the recent results the team have been able to achieve.

Case 5

Recently, our team were able to secure a rate reduction of 1.03% for a client with a mid-range interest rate with their current lender.

Whilst this may seem modest, a $500,000 mortgage with a 25-year term at 6.29% equates to monthly repayments of $3,311. While a 5.29% rate on the same mortgage terms brings the monthly repayments down to $3,008.

“It may not seem excessive in terms of percentage savings, however with the total loan amount this client was able to make comfortable savings week to week on their mortgage repayments” Synergy Business Finance Director Brendan Philp said.

“This money saved now provides extra funding for our client to explore other investments” Brendan added.

Case 6

“With more Australian’s looking to take positive action by reviewing their home loans – lenders are fighting harder for the refinance market to retain their customers” Brendan said.

“In working with a mortgage broker, savings can be made through assessing multiple lender’s offers on your behalf” Brendan added.

Recently, a client approached us with multiple current loans against their property. Simultaneously, we were able to reduce both rates to the more competitive rate the lender was offering new clientele.

Through assessing both loans, we were able to save .20% on one loan, and .90% on the other. An accumulated saving of 1.01% month on month.

With variable rate mortgages inevitably becoming less competitive over time, discussing refinancing regularly is an optimal way for Australians to find week to week savings.

If you’d like to discuss a review of your mortgage, feel free to contact our team.

Marcus speaks to Ben Dobbin on the Rural QLD Today Podcast

Wed, 05 Apr 2023 02:18:50 GMT

Speaking to Ben Dobbin on his Rural Queensland Today Podcast, Synergy Business Finance Managing Director Marcus Barnard touches on his experience in the banking sector, and how that has shaped the direction of Synergy’s finance brokerage arm.

With a strong history in the agricultural fields, Marcus discusses how farmers and grazers would traditionally hold long standing relationships with a singular bank, and bank manager.

With the market now shifting to utilising a single broker to assist with a variety of finance needs – Synergy Business Finance find themselves working directly with the producers on their new finance and refinancing needs.

Plus, Ben and Marcus discuss how the Synergy Accounting arm adds a full-circle benefit for rural clients long term objectives.

Producing one of the first finance and accounting firms in the south-east QLD market to specialise in these agricultural demands. Based in the heart of QLD’s agri-economic hub, Toowoomba with an additional office on the Sunshine Coast – Synergy Business Finance services all of Queensland and northern New South Wales.

You can listen to the full interview with Marcus and Ben across on Spotify, here.

$8,580 raised for the Maddox’s Helping Hand Foundation

Thu, 09 Mar 2023 04:32:36 GMT

The inaugural Synergy Business Finance Golf Day in support of Maddox’s Helping Hand Foundation took place on Friday the 3 ^rd of March, at City Golf Club Toowoomba.

Over 20 team’s tee’d off at a 9am shot gun start, featuring a Putting competition and a 'Beat the Pro’ competition on the 10 ^th hole. Further rallying up much needed funds for the important medical cause.

“The Maddox’s Helping Hand Foundation helped 31 patients in 2021, and more than 770 in 2022 across the Princess Alexandria Hospital, Queensland Children’s Hospital and Prince Charles Hospital. All of which has only been possible thanks to the generous efforts of Maddox’s Helping Hand Foundation.” Founder Shelley Porter said.

“We have been supporters of the Maddox’s Helping Hand Foundation since inception, and wanted to get on board with coordinating a golf day that was local to Toowoomba. They currently have a golf day in Gatton each year,” Synergy Business Finance Director Brendan Philp said.

“It’s our aim to further raise funds and also a broader awareness of the cause.” Brendan added.

A special thank you to the generous sponsors on the day, including:

After the presentations, teams were transported back to The Terrace at The Southern Hotel for some post game-day nibbles and drinks!

Congratulations to the winning teams, Putting Comp and Nearest to the Hole winners.

“We were successful in raising a total of $8,580 on the day – and are already aiming to exceed the $10,000 mark next year” Brendan said.

Our client’s Synergy Business Finance journeys

Fri, 24 Feb 2023 03:20:05 GMT

Our objective in all that we do is to achieve results, which is why our client relationships are key. We recently took the time to chat to some of our Synergy Business Finance clients, discussing some of the key benefits they’ve found in working with both Synergy Accountants & Synergy Business Finance.

Meet Dave

Meet Dave, a building contractor based in Toowoomba. Dave has been a long-standing client of Synergy Accountants, and recently looked to explore some owner builder finance options for his new family home based on the Toowoomba escarpment.

Dave found some key advantages to working with Synergy Accountants and Synergy Business Finance, making what would have traditionally been a difficult financing situation seamless.

He didn’t have to play middleman and reaped the benefits of working with the Synergy Consolidated group.

Meet David

Meet David, a Queensland businessman with varied investment needs. David enjoyed the process of working with the Synergy Business Finance team recently for some refinancing and new finance requirements.

David appreciates Synergy’s ability to work through any roadblocks to ensure continued business growth – and always with a caring approach!

If you’d like to discuss how Synergy Business Finance could help you or your businesses with any of your finance needs in the future, feel free to contact our team.

Instant Asset Write-off

Wed, 15 Feb 2023 05:23:46 GMT

Instant Asset Write Off, coming to end 30 June 2023. Are you needing any plant & equipment before 30 June 2023?

A popular scheme since inception, the instant asset write-off comes to an end 30 June 2023.

The instant asset write-off allows eligible businesses to claim an immediate deduction for the business portion of the cost of an eligible asset in the year the asset is first used or installed ready for use.

“The incentive was very popular when it was legislated several years ago now.” Dan Chappel, Synergy Consolidated managing Director said.

With a growing finance arm, Synergy Business Finance have noted a number of clients purchasing assets for delivery and use by 30 June 2023, before the scheme will cease.

“Stock and supply can be a concern since COVID, with many businesses ordering plant and equipment with long lead times” Marcus Barnard, Synergy Business Finance Managing Director said.

Eligibility to use the instant asset write-off on an asset is dependent on a few key factors, including:

Your business aggregated turnover
The date the asset was purchased
The date the asset was first used or installed ready for use
Whether the asset is new or second hand

The instant asset write-off eligibility criteria and thresholds have changed over the years, so checking with your Accountant or Tax advisor to confirm eligibility will assist with your purchasing decisions and correct taxation treatment.

While, getting in now to secure stock to be delivered and ready for use before 30 June 2023 is paramount. Long lead times on plant and equipment are affecting supply chains, and delays could mean ineligibility for the instant asset write off. Therefore it is important to confirm timeframes and availability now before it is to late.

To discuss Instant Asset Write offs and your eligibility in further detail, you can contact your Synergy Consolidated Client Services Advisor of Accountant directly.

Or if you’re interested in a Plant or Equipment purchase, you can discuss options with our finance team at Synergy Business Finance .

Join us for the inaugural Synergy Business Finance Golf Day

Tue, 24 Jan 2023 23:43:01 GMT

To be hosted at City Golf Club on Friday the 3 ^rd of March for a 9am shot gun start. Reserve your spot as a team of four (4), includes green fees, buggy hire, and lunch.

“For the last four years, Synergy Consolidated have supported the Maddox’s Helping Hand initiative, inspired by the journey of Synergy clients Michael and Shelley Porter and their son, Maddox” Synergy Business Finance Managing Director Marcus Barnard said.

Partnering with ACCISS (Australian Centre for Complex Integrated Surgical Solutions), all funds raised at the inaugural golf day will directly supported QLD families facing complex surgical scenarios. ACCISS provides essential clinic services for patients of the Queensland Children’s Hospital and the clinicians who care for them.

· Team of four (4) - $500 ex GST

· 9am Shotgun start, Presentation from 2pm in City Golf Club Clubhouse

· Bar tab facilities and Hire clubs available

· Lucky door prizes & Putting competition

Sponsorship opportunities are available, please contact Synergy Business Finance Manager Brendan Philp for more information on Hole Sponsorship (which includes team fees) – email brendanp@synergyconsolidated.com.au

$360 billion set to come off fixed home loans in 2023

Fri, 13 Jan 2023 04:52:20 GMT

An AFR report in December 2022 sited that a whopping $360 billion dollars’ worth of mortgages are due to come off fixed rates in 2023.

Coupled with this, will be the expectance of further rate rises from the RBA in 2023. Meaning further pressures on homeowners with a drastic increase in interest rates expected in these circumstances.

Most fixed home-loans with the big four banks will come to an end between July and December 2023 – meaning homeowners in these circumstances should be looking to refinance.

“Looking outside the big-four, and reviewing offers at various lenders will be crucial in the refinance process to ensure clients in these circumstances will secure the best product for their circumstances” Synergy Business Finance Manager Brendan Philp said.

2022 ended with an official cash rate of 3.1%, after eight consecutive monthly increases from the RBA.

“RBA cash rate decisions will continue from next month, and from the RBA board minutes last year members noted the share of household income being spent on mortgage repayments would reach levels in 2023 not seen since 2010” Brendan added.

Australians may become reliant on their savings to cover the expected 65 per cent repayment rise once fixed terms ended in 2023.

Homeowners who nabbed a low interest fixed rate and borrowed $750,000 could face an additional $2,000 in repayments under the 65 per cent expected rise.

Chief economists sited that around $35 billion of fixed rate loans would roll off from April this year, $44 billion in May and around $30 to $40 billion over the rest of the year – adding up to $370 billion across 2023.

Discretionary spending is also expected to take a hit but many predicted the RBA would continue to raise rates in both February and March.

Refinancing can take time to ensure the best product for your circumstances – so the best time to look at what’s available with your broker is now!

With access to over 40 lenders, our mortgage finance team are available to discuss your requirements and how we can assist. Give us a call on 1300 324 588 or send us an enquiry on our website, here.

What we've achieved | Refinance Case Studies 3 & 4

Tue, 13 Dec 2022 23:28:23 GMT

The end of 2022 has seen multiple rate rises occur, which has subsequently meant many Australians have turned to refinancing to ease mortgage pressure.

Our Synergy Business Finance team have been working closely with a number of our clients to review their current mortgages – with credible results achieved for our clients leading into Christmas this year.

Case 3

A new client approached us with a current loan commitment of $420,000. Their previous lender rate was 5.4%.

Our team reviewed a number of lenders, securing a new rate of 4.38%. During the application we also look at the duration of the loan and the roll-on effect this will have on the client's long term interest commitments and repayment figures.

“In this case, the loan was a little shorter. Meaning with both the rate reduction and term reduction, our client is paying less per month whilst also reducing the term of their loan by two years,” Synergy Business Finance Manager Brendan Philps said.

“Subsequently saving them 10’s of thousands of dollars in interest.” Brendan added.

Case 4

An existing client wished to review their current mortgage rate on an investment property. The refinance amount of $175,000 was currently lent on a 5.53% rate.

Our client felt it was the right time for them to reexplore the lending options available on the market through a broker to assist them in securing and structuring an updated loan to alleviate recent rate increase pressures.

“Our team secured a reduced rate of 4.84% for the client, while also extending the term of the loan back out to 30 years as part of the refinancing process,” Brendan said.

“In doing so, this client has had their monthly repayment amount reduced by over $200. Whilst also allowing for an extended repayment term.” Brendan added.

“We aimed to review both the loan rate as well as its structure I.e., the term to ensure both immediate but also long-term savings for the client are achieved where applicable.” Brendan added.

The strength of our finance team lies within their ability to understand the intricacies of a client's current lifestyle and long-term goals from the outset – meaning the refinancing result is the best solution for both immediate relief but also into the future.

If you’d like to discuss a review of your mortgage, feel free to contact our team.

Synergy Lending Update

Thu, 17 Nov 2022 23:17:56 GMT

Our Synergy Business Finance team have been busy across a number of lending areas for our clients in recent months. We’ve recapped what we are noting across the residential and commercial markets in the below report.

Home Lending

Nationally, home lending approvals have slowed down primarily due to the continued RBA rate rises and increase in cost of living. These conditions however have lenders remaining hungry to capture new customers and offering very competitive rates to attract new customers.

Outside of new mortgage applications, existing customer rates are remaining where they are and therefore leaving many long-term customers paying more than they need to be.

“There are a lot of opportunities in the market for rate reviews as all banks are hungry for new business” Synergy Business Finance Managing Director Marcus Barnard said.

“ First homeowner grants are also still available– with the added bonus of utilising a broker to assist in making the process more seamless” Marcus added.

Asset Finance

Agribusiness and commercial asset finance applications remain in high demand, as many businesses in our region continue to expand their operations post-COVID and with continued high commodity prices.

Of late, company vehicles, ploughs, tractors and other commercial and Agri machinery have formed majority of the lending requests for Synergy Business Finance clients.

“We have over 30 financiers competing for asset finance clientele, meaning utilising a broker is as integral as ever to ensure the best possible deal for the individual circumstance” Marcus added.

“The opportunity for the 100% asset write-off remains if purchased before 30 June” Marcus said.

Agri

Rate rises have made little impact in the popularity and demand of rural property purchasers. The rural property market is still encountering multiple bidders across various property types.

“Strong commodity prices are driving confidence in the agri sector, with many producers seeing the opportunity to grow their property base and improve their economy of scale” Marcus said.

If you’d like to discuss a review of your current finance commitments or to discuss new finance applications, contact our Synergy Business Finance team.

October Federal Budget Recap by Synergy

Thu, 27 Oct 2022 04:24:08 GMT

Last night’s Federal Budget release from new Treasurer Jim Chalmers outlines the Labor Government’s priorities off the back of the May 2022 Federal election.

The priorities from this budget are trying to relieve cost of living expenses with inflation expected to peak at 7.75%, before reducing to 3.5% in the 2023-24 year. To help with the cost of living, the labor government focused on the areas of childcare, paid parental leave, medicines, housing and wage increases.

Below the Synergy Accountants and Synergy Business Finance team have recapped their key take aways from the 2022-23 October Federal Budget.

Individuals

The Government announced the ‘Stage 3 tax changes’ will commence from 1 July 2024, as previously legislated. While all other personal tax rates will remain unchanged for the 2022-23 financial year.

The 2022-23 tax rates and income thresholds for residents are:

Under the stage 3 personal income tax rate changes, the 32.5% marginal tax rate will be cut to 30% to form one tax bracket between $45,000 and $200,000. The 37% tax bracket will be removed at this time.

Meaning, from 1 July 2024 there will only be 3 personal marginal income tax rates – 19%, 30% and 45%.

The 2024-25 tax rates and income thresholds for residents are:

Below are the rates and thresholds summary:

“This budget didn’t extend the low and middle income tax offset (LMITO) for the 2022-23 income year and will now cease. This has now been replaced by the low-income tax offset (LITO). As a result, low-to-middle income earners may see their tax refunds reduce anywhere from $675-$1,500 in the 2023 financial year” Synergy Accountants Director Dan Chappel said.

To-be Parents

An expansion of the Paid Parental Leave (PPL) scheme was announced in the budget from 1 July 2023 – after which either parent will be able to claim the payment, as well as both birth parents and non-birth parents able to receive the payment if they meet eligibility criteria.

“From 1 July 2024, Paid Parental Leave will increase by two additional weeks a year until it reaches 26 weeks from 1 July 2026, an increase of an additional six weeks to current Paid Parental Leave rules. Both parents will be able to share the leave entitlement, while sole parents will be able to access the full 26 weeks” Dan said.

Further to this, from July 2023 both parents will be able to take Government-paid leave in blocks as small as a day at a time with periods of work in between to provide greater flexibility for new parents.

Eligibility will also be expanded through the introduction of a $350,000 family income test, which families can be assessed under if they do not meet the individual income test. Single parents will also be able to access the full entitlement each year.

Home Buyers

“The Government has announced that it will establish the ‘Regional First Home Buyers Guarantee’ to promote home ownership in regional locations. The guarantee will be for eligible citizens and permanent residents who have lived in a regional location for more than 12 months and looking to purchase their first home in that location with a minimum deposit of 5%” Synergy Business Finance Managing Director Marcus Barnard said.

“The Government will also invest $10 billion in the newly created ‘Housing Australia Future Fund’, to be managed by the Future Fund Management agency. The fund will be used to deliver 30,000 social and affordable homes over 5 years and allocate $330 million for acute housing needs” Marcus added.

Small to Medium Business

The Government will not proceed with the proposal to allow taxpayers to self-assess the effective life of intangible depreciating assets – after initially being announced in the 2021-22 Budget.

In addition, the 2018-19 Budget measure that proposed introducing a limit of $10,000 for cash payments made to businesses for goods and services (and for which a delayed start date was announced in 2018-19) has been abandoned.

Superannuation

The Government confirmed its election commitment that the minimum eligibility age for making superannuation downsizer contributions will be lowered from age 60 to age 55.

This will allow individuals aged 55 or over to make an additional non-concessional contribution of up to $300,000 from the proceeds of selling their main residence outside of the existing contribution caps.

The individual or spouse must have owned the home for 10 years & make the contribution within 90 days after the home is sold.

“The reduction in minimum age eligibility from 60 to 55 years of age is proposed to come into effect from the first quarter after royal assent” Dan said.

Working Capital versus Overdraft

Thu, 06 Oct 2022 05:55:45 GMT

As cost of goods and business expenses continue to rise, more and more businesses see themselves struggling with traditional overdrafts. However, there are a number of other avenues available to business owners requiring additional cashflow in a more cost-effective way.

From Invoice finance to Trade finance options, Synergy Business Finance’s Managing Director Marcus Barnard breaks down working capital finance options below.

Invoice Finance

Small and growing businesses suit both Invoice and Trade finance options, with neither requiring property as security.

Invoice finance utilises amounts due from customers to provide an injection of cash to operate immediately. Cash borrowed is repaid when the customer pays upon the invoice payable terms (i.e. 30, 60, 90 days).

“Invoice finance is a way to release cash that’s locked up in invoices, versus borrowing additional cash on a traditional overdraft structure” Synergy Business Finance Managing Director Marcus Barnard said.

“This option is great for businesses with slower cash payments due to invoice terms” Marcus added.

Trade Finance

While businesses with large upfront costs for raw materials, and delayed income due to time to manufacture goods, Trade finance can provide an option for these businesses to buy additional raw materials and convert them into goods over a specified period until the goods are sold and finance is repaid.

“Trade finance is where a third-party financier finances the payment of a customer’s supplier and then receives payment once the customers goods are produced and sold” Marcus said.

“Either of these funding structures are also great for clients requiring working capital, but all equity is tied up in inventory not property” Marcus added.

“While customers who need their property to secure other debts but need large working capital facilities to run their business can also benefit from either Invoice or Trade finance options” Marcus concluded.

To discuss either Finance or Trade Finance options and whether they would be applicable to your circumstances, feel free to contact our Synergy Business Finance team to book an appointment.

Angie Barnard recognised as QLD Asset Finance Rising Star

Thu, 29 Sep 2022 06:44:49 GMT

Congratulations to our Director Angie Barnard on being a finalist in the 2022 Connective Excellence Awards .

Angie is a finalist in the QLD Asset Finance Rising Star Category.

First Home Buyers Available Government Grants & Schemes

Tue, 20 Sep 2022 05:38:20 GMT

Breaking into the housing market may seem more daunting than ever before. Interest rate rises and home price spikes have faulted confidence in buyers making the leap into purchasing their first properties. However, both the Federal and State Governments continue their support of the housing economy – with a key purpose to help people buy a home sooner.

Our Synergy Business Finance team have broken down the key Government Housing Schemes for your reference below.

Home Guarantee – First Home Buyers

This Federal Government scheme is set to assist people looking to buy their first homes, with a guarantee of up to 15% of the purchase price avoiding LMI.

“This scheme is available for 35,000 people in the 2022-23 financial year. It is targeted at applicants who are looking to purchase their first home, with a $125,000 income cap for individuals and $200,000 for couples” Synergy Business Finance Managing Director Marcus said.

“This is an existing scheme from the Federal Government so some places have already been exhausted” Marcus added.

More information that’s important to know about the Home Guarantee – First Home Buyers Scheme:

You must be an Australian citizen above the age of 18 years
You must live in the purchased home
This must be your first home purchase and you mustn’t have previously owned a property in Australia
You must be an individual earning up to $125,000 or a couple earning up to $200,000
You must have a 5% deposit of the purchase price
Property price caps apply
35,000 places announced for 2022-23

Family Home Guarantee

“The Family Home Guarantee scheme is aimed to support single parents with at least one dependant child in purchasing a family home, regardless of whether the parent has previously owned a home. The Federal Government will guarantee up to 15% of the purchase price, avoiding LMI” Marcus said.

More information that’s important to know about the Family Home Guarantee Scheme:

You must be a single parent with at least one dependent, and must be the only name on the loan and title
You must be an Australian citizen above the age of 18 years
You must live in the purchased home
You must be an individual earning up to $125,000
You must have a 2% deposit of the purchase price
Property price caps apply
5,000 places available in the existing scheme

Queensland First Home Owners Grant

“The First Home Owners Grant from the Queensland Government has been a popular initiative for first home buyers to enter the market since it’s inception. The grant helps first home owners buy a new home with a $15,000 grant provided for either buying or building a new house.” Marcus said.

More information that’s important to know about the Family Home Guarantee Scheme:

You must be an Australian citizen above the age of 18 years
You must intend to move into the new home as your principal place of residence within 1 year
The property you buy or build must be a brand new home
The value of the new home including land must be less than $750,000
There are no application income eligibility caps or deposit percentage criteria’s
You or your spouse must not have previously owned property in Australia that you have lived in
Property price caps apply

Help to Buy

“To be introduced in 2023, this scheme is set to help people buy a home sooner, by providing a Federal Government equity contribution of up to 40% on new build and 30% on existing homes” Synergy Business Finance Managing Director Marcus said.

So, who is it for? Low to middle income earners who currently don’t own a property, with an individual income of up to $90,000 and a couple income of up to $120,000. A 2% of the purchase price deposit is required.

More information that’s important to know about the Help to Buy Scheme:

You must be an Australian citizen above the age of 18 years
You must live in the purchased home as the principal place of residence
You mustn’t own any other land or property in Australia or overseas
You must pay for associated costs (stamp duty, legal bank fees)
Property price caps apply
10,000 places per year available
This scheme commences from the 1 ^st of January 2023

Regional First Home Buyer Support Scheme

“This will be a popular scheme for buyers looking to buy their first homes in rural and regional areas across Australia from January 2023” Marcus said.

“Applicants must reside in regional areas of Australia and have been living there for at least 12 months. First home buyers purchasing a property in these regional areas can be guaranteed 15% of the properties purchase price, avoiding LMI under this Federal Government initiative” Marcus added.

More information that’s important to know about the Regional First Home Buyer Support Scheme:

You must be an Australian citizen above the age of 18 years
You must live in the purchased home as the principal place of residence
This must be your first home purchase
You must be an individual earning up to $125,000 or a couple earning up to $200,000
You must have a 5% deposit of the purchase price
Property price caps apply
10,000 places per year available
This scheme commences from the 1 ^st of January 2023

To discuss any of these Government Housing Schemes and whether they would be applicable to your circumstances, feel free to contact our Synergy Business Finance team to book an appointment.

Marcus Barnard joins Synergy Business Finance

Wed, 07 Sep 2022 06:38:26 GMT

Synergy Business Finance are thrilled to announce that Marcus Barnard has joined the Synergy Consolidated team. With extensive experience in banking, lending and finance – Marcus brings unprecedented knowledge to our growing finance arm.

Growing up in western Queensland, he attended Nudgee College for high school and later Gatton College where he undertook a Bachelor of Business in Property Studies.

After graduating, Marcus joined the banking sector. Now with over 25 years banking experience he has worked with clients throughout Queensland and northern New South Wales - achieving continued results for his clients.

During his banking career Marcus was promoted to State Agribusiness Manager and Regional Executive, managing a large team of commercial and agribusiness managers throughout not only Toowoomba but broader Queensland.

With 2022 saw several changes for Synergy Consolidated – a new home, new service offerings for our clients and even more, a new look. Our client’s needs continue to grow in the current market, which saw an opportunity for Marcus to join the growing Synergy Business Finance team.

“I’m truly thrilled to be joining the Synergy Business Finance team as Managing Director. I have watched their team achieve amazing results for their clients since inception and I am looking forward to helping them continue to achieve commendable results long term” Marcus Barnard added.

Marcus will work with our team of Finance Managers and Finance Officers across an array of lending sectors – from residential, to equipment, commercial and agribusiness.

Tips for Investing in Property

Thu, 04 Aug 2022 00:21:33 GMT

Property remains one of the best investments an individual can make. It is often said that property is an increasing asset – if considered accurately in line with your equity. If you’re considering adding an investment property to your personal circumstances, we’ve broken down some key considerations with our finance team below.

“Equity is only one consideration the banks will assess when considering whether to approve a loan” Synergy Business Finance Officer Stephanie Sander said.

“Other factors include your income, age, dependents, and other debts” Stephanie added.

When considering accessing your equity, it would be the Synergy Business Finance team’s recommendation to assess all aspects of your individual or family finances simultaneously to ensure long term success.

“Ensuring that a specific property is a worthwhile investment often comes down to finding the right location” Synergy Business Finance Manager Brendan Philp said.

Researching the local market, understanding the rental demand, prices and expectations of renters will ensure the best return for your investment property longstanding.

Assessing investment property expenses in line with the expected ROI is essential – accurate calculations from the outset will ensure that an investment decision is realistic for your circumstances.

“Maintenance can vary considerably between properties depending on the age, condition, and inclusions of the property. For example, additional costs should be expected for older properties, or properties with extensive gardens, lawns, or a pool” Brendan added.

Many investors utilise the “Rule of Four”. This rule is used to estimate the prices of an investment property based off the useable equity on hand. The rule of thumb involves multiplying your useable equity by four to arrive at a purchase price.

“Investors use a multiplier of 4 (four) as banks will lend against the investment property up to 80%” Stephanie said.

This rule allows for a 20% deposit and other costs, such as stamp duty which is payable upon accessing your usable equity.

For example, if your useable equity was $200,000, this would be multiplied by 4 to generate a starting point of $800,000 for a potential investment property purchase.

Determining whether adding an investment property to your portfolio is the right decision can often seem overwhelming. Discussing the options with your broker can assist in forming your decision into the future.

We’d welcome the opportunity to discuss your investment property options one-on-one. Feel free to contact our Synergy Business Finance team to book an appointment.

How to utilise your Home Equity

Tue, 02 Aug 2022 01:07:58 GMT

Do you have equity in your home? Did you know that you can access and unlock the equity in your home to buy an investment property, renovate or purchase a new car or boat? Let’s look at what equity is, and how you can assess and utilise your usable equity.

What is equity?

Equity is the difference between the worth of your home and what is owed to your lending bank.

Equity can be established a number of ways. It can build over time as your loan amount reduces through principal and interest repayments, or as you make improvements on your home that increases it’s value. Your equity balance can also grow if the market value of your property increases. All of these scenarios could affect the equity you have in your property!

As an example, if the market value of your home is $500,000 and you owe $200,000, you therefore have $300,000 in equity.

What is usable equity

Usable equity is the equity in your home that you can access and borrow against. Typically, banks will lend up to 80% of the value of your home, less what you owe. This equity is classified as usable equity.

“Banks generally consider loans with a loan-to-value ratio above 80% high risk. Limiting useable equity to 80% provides a safety buffer should house prices decrease and your equity is eroded” Synergy Business Finance Officer Stephanie Sander said.

Calculating the usable equity available in your home is as simple as calculating 80% of your property’s current value minus the current owing balance.

For example – if your home is $500,000 and you owe $200,000, the calculation is as follows:

80% of $500,000 = $400,000

Minus what you owe (-$200,000) = $200,000 of useable equity.

Using your usable equity

You can withdraw equity by increasing or topping up an existing home loan, applying for a supplementary loan or cross collateralising your home with a new investment property.

Applying to top up your existing home loan will provide you cash into your account for things such as a deposit for a new investment property, home renovations, debt consolidation or other purchases.

“We see a number of clients utilising the equity in their current loan to purchase additional property – whether it be an investment property for leasing or to purchase a holiday home.” Synergy Business Finance Manager Brendan Philp said.

However, if you’re not wanting to increase your current home loan balance, you can apply for a supplementary loan. This will provide you with additional cash, while also providing options to choose a different loan type with different product features - such as repayment frequencies, interest rate and loan terms.

Cross collateralisation is another strategy to access the usable equity in your home to purchase an investment property. This means you add the existing home as collateral to the new investment property loan in order to secure the purchase.

In addition to your existing home loan, a second home loan for the new property would be secured by the existing property and new investment properties value.

“Cross collateralisation is a great way to diversify your portfolio, however, securing the loan with both properties may limit your ability to use equity in the future. It is important to discuss your long-term plans with your mortgage broker when considering how to access equity for a loan” Brendan added.

So, whether you’re looking to purchase an investment property, or utilise the usable equity in your property to purchase a new vehicle – taking a look at your home equity could be an option.

If you’d like to discuss utilising your home equity for a new purchase, or to review your overall finance structure – you can contact our Synergy Business Finance team.

What we've achieved | Refinance Case Studies 1 & 2

Tue, 19 Jul 2022 23:34:05 GMT

With interest rate rises continuing, we have been working with a number of our existing clients to assist them with refinancing. Easing repayment pressures and saving thousands on the lifetime of the loan - learn more about how we achieved these results below.

Case 1

An existing business client, expressed interest in reviewing their home loan. Our team were able to secure a new loan with a rate saving of 0.88%.

With a relatively small loan, approximately $340,000, our Synergy Business Finance team have saved them $155 per month and potentially 10’s of thousands of dollars in interest payable over the term of the loan.

Case 2

As another existing business client with both a home loan and investment loan, the interest only term of this client’s investment loan had finished. Meaning they were now paying principal and interest.

Our team secured another interest only investment loan for the client, shaving 0.64% off their interest rate in the process – as well as a reduction of 0.71% off their home loan interest rate.

This reduced our clients loan repayments by over $1,000 per month, along with returning the loan structure to an interest only loan term. Meaning our business client reaped the benefits of additional cash flow month on month for their investment – but also enjoyed a reduction in their home loan repayments by over $200 per month.

If you'd like to discuss refinancing or learn more about how we can help you find savings in your mortgage - contact our finance team today!

Record rate increases and your mortgage

Fri, 10 Jun 2022 05:51:10 GMT

Following the first rate rise in May to 0.35%, The Reserve Bank of Australia (RBA) has continued ongoing rate increases in June’s announcement – raising the cash rate by 50 basis points to 0.85%.

This marks the greatest increase in interest rates in over 22 years and has left many Australians concerned about the ongoing rate increases and what they mean to their already tight cost of living expenses. Our Synergy Business Finance team discusses the cash rate rises below and what they mean for your mortgage.

Cost of living concerns

As tipped, many economists have predicted that the RBA will continue to tighten monetary policy in an attempt to reduce inflation rates which are currently sitting at a 20-year high.

Inflation figures for the March quarter showed CPI inflation rise to a surprising 5.1% over the year, and 2.1% over the quarter. While the RBA’s preferred measure of trimmed mean inflation lifted well above the target band to 3.7%.

“Additional rate increases are a concern for many who may already be feeling cost-of-living stress. However, the hike in interest is intended to do the opposite, with rate rises assisting with the return of inflation to target over time – this may not be for over a year yet.” Synergy Business Finance Managing Director Angie Barnard said.

“With electricity, petrol, food and other cost of living expenses still rising, it’s important that Australians can ensure the best possible interest rates to relieve pressure month to month.” Angie added.

What will your mortgage look like

The new cash rate set in June at 0.85% marked the first back-to-back cash rate hike in over 12 years. Rising by over 50 basis points from May’s increase.

“In April 2022 the average loan size for an owner-occupied dwelling in Queensland was $527,452. An interest rate rise of 0.50% on the average outstanding home loan rate of 2.86% could see monthly mortgage repayments increase on a loan of that size by $138 per month or $1656 a year for a 25-year owner-occupied loan.” Synergy Business Finance Manager Brendan Philp said.

With funding costs increasing for banks, we are seeing all the major lenders passing on the cash rate increase to their customers.

“Despite the latest increase to the cash rate and interest rates there is still a lot of competition in the lending market and in an ideal world, your interest rate should start with a 2” Angie said.

“Accessing a large range of lenders is essential to ensure that the rate and structure of a loan is best for your circumstances. Which is why an experienced broker with expertise in this area is best.” Brendan added.

With the cost of living and the cash rate expected to continue to rise into 2023, now is a great opportunity to review your home loan.

If you would like to explore options like refinancing your home loan, please contact our team at Synergy Business Finance today.

Rate increases and what it means for your mortgage

Fri, 20 May 2022 03:49:13 GMT

With the first rate rise in over 10 years, from the record-low 0.10% to 0.35% by The Reserve Bank of Australia (RBA), mortgage repayments will rise amid already high inflation concerns – with more cash rate increases likely to follow.

This has left many feeling like this may be the best time to refinance. Our Synergy Business Finance team discusses the cash rate rises below and what they mean for your mortgage.

Ongoing rises expected

With inflation jumping to a 20-year high, many economists are predicting the RBA will continue to tighten monetary policy with further increases to the cash rate.

A recent report from the National Australia Bank said stronger than expected results in data, due to be released this week, could ignite further increases in the cash rate to 0.85% next month.

“Although not set in stone, further rate increases are expected. Meaning reviewing loan structures to ensure additional rate increases will not affect long term objectives is crucial – and what we’re advising our clients to do.” Synergy Business Finance Managing Director Angie Barnard said.

The roll-on affect for your mortgage

Some Chief Economists are tipping the RBA to raise the cash rate to 0.75%, which for the average borrower with a $750,000, 25-year-occupier loan could be expected to increase their monthly repayment by $159, or almost $2000 a year.

“In March 2022 the average loan size for an owner-occupied dwelling in Queensland was $516,615. A cash rate increase to 0.75% could see monthly mortgage repayments increase by $109 for a 25-year owner-occupied loan.” Synergy Business Finance Manager Brendan Philp said.

For those who took advantage of historically low 2-year fixed rate mortgages in 2020 or 2021, now is a good time to start planning for the transition of your home loan to the next rate.

“The market has changed considerably during this time and the experts at Synergy Business Finance are here to help you navigate the change” Brendan added.

Increases in monthly repayments will be dependent on a number of factors, including how each particular bank responds to the cash rate increase as well as the overall structure and size of the mortgage.

“Our access to a large range of lenders, which combined with long standing experience and expertise, aims to ensure a loan product that is tailored to our client’s needs.” Brendan said.

If you would like to explore options, which could include refinancing ahead of any other future cash rate hikes that the market has signalled, please contact our team at Synergy Business Finance today.

Continuing low availability for Cars and Equipment in Australia

Tue, 03 May 2022 02:18:51 GMT

According to industry insiders, the recent stock shortage of new cars entering Australia is the biggest challenge to face the automotive industry since WWII.

There are a number of COVID-related contributing factors, with crippling supply constraints of many leading car brands caused by ongoing restrictions around the production of semiconductors that are intgral to the operation of today’s vehicles.

“We’re seeing lengthy delays for our clients across the automotive market in Australia – with a clear supply and demand issue across the board” Synergy Business Finance Manager Brendan Philp said.

The impact of the global chip shortage on the new vehicle market

With the recent conflict in Ukraine putting extra obstacles in the way of what was an already impacted supply chain, manufacturing specialists predict that new vehicle supplies won’t return to ‘normal’ until the end of 2022 at the earliest - and possibly well into 2023.

Depending on the make and model, as many as 3,000 of these semiconductor devices may be needed to complete the manufacturing process of a single new vehicle and, with computer chips taking as long as six months to manufacture in purpose-built overseas facilities, the shortage is leading to unhappy customers and stressed car dealers.

The shortage has been made more noticeable due to the recent spending habits of Australians who chose to splash out on new vehicles during the pandemic when other discretionary spending habits – including international travel – were put on hold because of border closures.

Globally, manufacturers built 1.7 million fewer vehicles in 2021 than they did in 2019, which was the last full year before the effects of pandemic wreaked havoc on the automotive industry.

To counter the production delays and temporary shutdowns as vehicle manufacturers wait for the chips needed to complete assembly line production, some leading brands are making hard decisions – including temporary suspension of some vehicle features – simply to keep new cars reaching consumer markets.

“For those working the land and relying on new vehicles to maintain production and business growth, the impact has been enormous” Brendan added.

In mainstream motoring media, recent articles report dealer claims that they are only able to deliver at around one-quarter of the rate they are writing new vehicle orders. For a dealer who might typically sell 40 vehicles each month, it means that only 10 are actually being delivered as low stock numbers are stretched across the country.

Ways to overcome the stock shortage

For savvy customers desperate to access the vehicles they need, changing tack has proved positive, with many car-hunting customers reporting better results from asking for car dealership expertise around finding them the vehicle that will do for now, rather than simply the best possible vehicle or deal.

“We’re sourcing the best possible options for clients to assist our clients in getting on with increased production. Solving the immediate requirement is still of uptmost priority.” Brendan said.

Advice from the Australian Automotive Dealers Association throughout the pandemic has been consistently about prompting potential buyers to order now and get in the queue, then be patient enough to wait until their preferred vehicle eventually arrives.

For those who can’t wait any longer, though, the advice is clear, with four options on offer as the most realistic ways to manage the shortage:

Order your preferred vehicle immediately… and wait
Invest in repairs to your existing vehicle fleet
Choose a used vehicle
Expand your buying horizons by exploring different makes and models that are less sought after but can still serve your needs

Although the latter option may feel like a stretch for many people who rely on the strength and durability of a preferred truck or car brand to support their business operations, it may be a positive way to help weather the current vehicle shortage storm.

For finance-related support or advice for the vehicle purchases you or your business needs, talk to our experienced loan specialists today at Synergy Business Finance.

Why should I use an Equipment Finance Broker?

Thu, 21 Apr 2022 00:09:33 GMT

With so many banks and lenders competing for your business, working with a broker helps you cut through the confusion of the crowded loan market.

From the outset, Synergy Business Finance will understand your entire business model – leveraging their overarching accounting and industry knowledge to deliver immediate, measurable savings of both time and money.

Time does equal money

The opportunity to maximise time within your business should be meaningful motivation to draw on the support of an experienced equipment finance broker to help explore tailored loan options that suit your specific business needs.

With the expertise of a specialised equipment finance broker like Synergy Business Finance who can uncover the most competitive interest rates available, as well as loan terms that offer genuine flexibility, you or your business admin support can gain valuable time working within the businesses day to day operations.

“Our aim is adding value to our client’s bottom line – through making the process as seamless as possible for them from a time perspective but also by adding benefit to their production output in the long run.” Synergy Business Finance Manager Brendan Philp said.

Personalised service is powerful

Unlike big banks and financial institutions, brokers are typically small businesses with a dedicated, tight-knit team. This means that the benefit of well-informed advice and support is more likely to come from a person that your business knows and trusts from the outset.

“We know the end goal objectives of our clients and tailor specific options to suit these goals ahead”, Brendan added.

“We immediately understand their business in talking to them, reviewing their current financials in detail and confidently negotiating the best possible deals on our client’s behalf.” Brendan said.

Industry knowledge matters

The difference a skilled broker like Synergy Business Finance can make is that they do more than merely secure the deal – they aim to source solutions that may offer even more benefits for your business long term.

Understanding the world of equipment finance is another important advantage and with a broker who comprehends your day-to-day operations – as well as the growth goals for the business – finding finance options that align becomes seamless.

Accessible, flexible service

For anyone who runs a business, the concept of ‘regular’ hours often becomes a meaningless term.

Although customer-facing operations may be limited within set working hours, often the administration side of the business happens in the hours afterwards – especially when there are significant investment decisions to be made.

Helping your business flourish by doing the leg work is what sets Synergy Business Finance a part. Working in your timeframes and workloads with a dedicated goal in mind is paramount.

“Throughout the application process we are available at any time to our clients. It’s integral our team takes a personalised approach to each of our client’s circumstances to make the process as stress-free as possible” Brendan said.

Agility within the lending market

“Our team are on the cusp of industry changes, working closely with our lenders as well to understand new product options to benefit clients” Brendan added.

In Australia, the ever-evolving equipment finance market regularly sees new players and products – and with each new lender or product comes a different lending criteria and application process.

One of the critical ways an experienced equipment finance broker can add value to your business is with a commitment to ongoing education that ensures they are up to date with the latest and best opportunities and credit providers. This knowledge, combined with a firm understanding of your own business, puts them in a strong position to deliver truly tailored solutions that suit your financial circumstances.

What’s in it for you?

Connections that have been established and valued are vital to sustainable business success, with brokers able to leverage their valuable professional relationships to provide you with the equipment finance your business need. Even when timeframes are pressured, you may be able to access unique benefits that other lenders don’t promote.

While banks limit themselves to asking questions that help them ensure your business fits into their prescribed pathways towards finance approval, a broker like Synergy Business Finance is better able to focus on how the loan product can serve your needs – and then find a product that helps, rather than hinders, your business’s potential for growth.

Choice and convenience = savings

With a broker better able to offer a broad solution of potential lenders for your equipment finance, choosing equipment finance that is the right fit for your business is more efficient.

By putting convenience and greater control within easier reach, your business benefits from the choice and available options that make shopping around for a better deal easier than ever – with results that can have a positive impact on your profits.

To find out how working with an equipment finance broker can improve the bottom line of your business, talk to our dedicated Synergy Business Finance team today.

Synergy supports Maddox’s Helping Hand

Thu, 14 Apr 2022 01:56:32 GMT

For the last four years, Synergy Consolidated have supported the Maddox’s Helping Hand initiative, inspired by the journey of Synergy clients Michael and Shelley Porter and their son, Maddox.

On Easter Sunday in 2018, Maddox was involved in an accident at home where his hand was left severely severed in mower blades. He was flown to the QLD Children’s Hospital by LifeFlight where he commenced his journey with Dr Michael Wagels, Director of the Australian Centre for Complex Integrated Surgical Solutions – which would extend over 3 years and with countless surgeries performed to give Maddox the best possible outcome.

Maddox’s Mum, Shelley set out with a mission to help all children and their families at the QLD Children’s Hospital by establishing a foundation to support and advance patient care and research. Fast forward, Shelley partnered with ACCISS (Australian Centre for Complex Integrated Surgical Solutions) to create the Maddox’s Helping Hand Foundation to facilitate and support essential clinic services for the patients of the Queensland Children’s Hospital and the clinicians who care for them.

“Shelley is such an inspiration, creating the Maddox’s Helping Hands Foundation to shine a light on Maddox’s journey with the QLD Children’s Hospital and Dr Wagels incredible work” Managing Director of Synergy Consolidated Angie Barnard said.

“We have supported the Foundation for the last 4 years now since inception, with their first fundraising event in 2021 raising over $90,000!” Angie added.

All funds raised from the event go directly to the Foundation. The foundation partners with ACCISS to help make their specialist skills available to all families at the QLD Children’s Hospital. This service is now up and running.

ACCISS aim is to address complex medical challenges by leveraging its strong engineering, clinic and regulatory expertise to provide essential clinical services to patients of the QLD Children’s Hospital and the clinicians that care for them.

The support of Maddox’s Helping Hand will be a key feature of making these kinds of clinical services provided ACCISS a routine aspect of patient care now and into the future.

“We had the chance to meet Dr Wagels at the 2021 event. Shelley has mentioned that without Dr Wagels being on call the day of Maddox’s accident than he potentially wouldn’t have his hand today” Angie said.

“Surgeons like Dr Wagels and the ACCISS team provide world first, life changing surgeries for QLD families. It’s our absolute pleasure to support the Maddox’s Helping Hand Foundation each year” Angie concluded.

The annual sold out Maddox’s Helping Hand luncheon will be held at the Plainland Porters Hotel this May. While the Maddox’s Helping Hand Charity Golf Day will be held in November at Gatton. For more details, see the Maddox’s Helping Hand Foundation website, here.

Synergy Consolidated has arrived

Tue, 29 Mar 2022 00:33:42 GMT

2022 sees a number of changes ahead for Synergy, which without the support of our clients and broader business community wouldn’t be possible.

With a new home and new offerings for our clients portfolios meant we needed an all new look. A brand that represented who we as a whole – a hero brand that married together our service brands Synergy Accountants and Synergy Business Finance.

Our aim within these changes was to continue to innovate and strengthen our services offering, so that in doing business with us – yours becomes stronger with each tomorrow.

The inspiration

In workshopping what it was that made Synergy tick, we felt our greatest strengths were the sum of a few key parts – relationships, knowledge and trust.

The sum of these parts equated to a solid foundation for our clients across both the Synergy Accountants and Synergy Business Finance brands.

And from that, Synergy Consolidated was born.

The tag line

Our objective in all that we do is to achieve results. Whether that be within our client’s personal or professional accounting solutions, their business’ strategy or within their finance needs.

Which made the creation of our tagline fairly simple. Business today, stronger tomorrow.

Our aim is to ensure in that all business our client’s do with our team at Synergy Consolidated we make their financial future stronger than it was before.

To learn more about Synergy Consolidated, take a look at our new website here: www.synergyconsolidated.com.au

Or you can visit our new office in Toowoomba on Level 3, 482 Ruthven Street (Walton Stores) or our Sunshine Coast office Tower 2, Level 5 Suite 515, 55 Plaza Parade, Maroochydore.

Synergy as you know it, is getting a new look

Wed, 23 Mar 2022 01:49:31 GMT

2022 sees several changes unfolding for Synergy. Including a new home for our Toowoomba team at the Walton Stores precinct, as well as new service offerings for our clients to assist in strengthening their financial positioning… and soon, a new look.

Marrying our two service brands – Synergy Accountants and Synergy Business Finance , under our new hero brand.

At the end of 2021 we workshopped what it was that we felt our clients and broader community felt about us when they thought of the Synergy brand.

We’ve taken those findings and put together an all-new look and brand identity for our business. Yet, at the core of what we do well for our clients remains and is reflected in our new brand positioning.

Follow along as we reveal more about our new brand on our social media throughout March, here.

Make your tomorrow stronger, with Synergy Business Finance

admin@dddigital.com.au (Motifo Master) — Wed, 02 Mar 2022 01:40:07 GMT

In years gone by, broking and banking has been synonymous. In recent times, that’s no longer always the case – bringing an extensive number of benefits to clients in the long run.

More and more, financial professionals like accountants have seen success with the finance broker model. There’s several reasons why Synergy Accountants client’s are benefiting from the finance offering provided by Synergy Business Finance.

Accountants in broking

With an in-depth understanding of client’s business models thanks to an accounting background, putting the numbers and scenarios together for relevant finance applications is made easier and more strategic on all fronts – for the client and lender alike.

“Working with our accounting clients on finance applications allows me to bring my analytical thinking to pull the clients application together much more accurately” Synergy Business Finance Director Angie Barnard said.

“Our team are able to put together the best scenarios for our clients with an in-depth understanding of their personal and business situations” she added.

These technical skills provide a value-add for clients – saving both time and money.

“When we see clients and companies for finance requirements, we are able to instantly provide them general advice on how things can be done better from an accounting front as well. There’s a real connection between finance broking and accounting” Angie said.

A holistic approach

Giving advice for the best structure for a client’s personal finance requirements, or their business growth objectives brings the Synergy Accountants technical skills into the Synergy Business Finance division.

Angie and the business finance team bring a level of trust from a corporate accountant’s long term strategic approach to an industry that has traditionally been focused on getting the best deal on a single transaction.

Versus the approach taken by Synergy Business Finance whose key difference is looking at the long-term outcome for their clients and working holistically across both the accounting and finance outcomes.

Are you a current Synergy Accountants client with business or personal growth objectives? Our team can assist you with all your business and personal finance requirements. Making your tomorrow, stronger.

Here is what some of our finance clients have to say about working with our team..

“Working with the Synergy Business Finance team was incredibly beneficial for our business. We are in the hospitality sector and the Synergy team have successfully helped us secure both commercial and car finance in recent times.

Their processes were clear and concise, with frequent updates from the team. They worked with us from start to finish, with a clear understanding of how our business worked leading into the application process as a current accounting client of Synergy as well.

In our initial discussions their team always put forward the best structure advice for our business and personal circumstances, of which has paid dividends for us in the long run.

They really put in the ground work to ensure the best result for us, while making the process as stress free as possible. We highly recommend their team for all business finance matters.”

Shelley Porter, Porters Plainland Hotel

Disclaimer: Whilst this publication has been carefully prepared it is written in general terms and is intended as general information and to provide commentary. It does not purport to be comprehensive or render any advice. No one should rely on information contained in this publication without first obtaining professional advice relevant to their specific situation.

We’ve Moved! Our new Toowoomba home is now open.

admin@dddigital.com.au (Motifo Master) — Tue, 22 Feb 2022 23:08:59 GMT

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We are excited to announce that we have moved into our new Toowoomba office space. You will now find us within the Walton Stores at Level 3, 482 Ruthven Street, Toowoomba.

We’re kicking off 2022 with a number of new initiatives for the Synergy brand, including a new home for our team. Our new space is central to the Toowoomba CBD and will allow our local and south-east Queensland clients a whole new experience.

Featuring stunning exposed brick accents, multi meeting rooms and all new open office areas for our entire team – we’re excited for new beginnings in the space.

We look forward to showing you our new space!

Find out how to contact our team to organise your catch up at our new Walton Stores location, here.