2010 is here and so is Account Tech Finance Solutions

Take a few minutes to see how we can assist you

this year……

Your Requirements	My Solution
* Car Insurance due?	I have 2 major Australian Insurance companies on
	board which allows me to be super competitive
* Looking to upgrade your car	Talk to me to find the right Finance
	product to suit your business or personal needs
* Require new business equipment	Should you Lease or what is the alternative?
	Ask about our operating Lease products
* Are your Debtors getting out of hand?	I can arrange Debtor Finance
* Want to upgrade the kitchen?	Personal loans are back with minimal payout penalties
* Business Insurance due?	Have you heard about Insurance Premium Funding?

Remember it costs nothing to ask

Matt Walker

1300 858 152

matt@accounttech.com.au

The finance scene has changed over the last ten years for the small to medium business owner since the introduction of GST.

Prior to the year 2000 the majority of business people would go out to purchase a vehicle or equipment for their business and finance it on a lease or a commercial hire purchase depending on their accountant’s advice and the business’ setup.

This made it quite simple for their accountants as all they had to do was add up the lease/HP payments for the financial year and that was the tax deduction. Read More

Moving on from consumer finance to small business and corporate finance, we’ll look at the example of purchasing IT equipment.  Rental or operating lease facilities are often ideal for these groups as they need to be up to date with technology to keep pace with their competitors.

Rental Products

The rental products available in the market allow the small business to lease (off balance sheet) IT equipment which will no doubt be out of date in 2 to 3 years time. This product allows the business “the use” of the current IT equipment and at the end of the finance term they just hand it back and upgrade to a more current product.  A fixed monthly payment is calculated at the time of purchase. Read More

Buying a motor vehicle whether it is new or used can be a time consuming and frustrating adventure. In this article I will look at the everyday person buying a family car and some of the things to consider.

The act of purchasing a vehicle and funding it are two very separate parts of the process.  The negotiating of a price or change over figure is one transaction and the funding a totally different transaction.

Once you have completed the buying of the vehicle it then comes down to how is the most effective way to pay for it. Most from the old school would say that if you can’t pay cash then don’t buy it and to some this is still the way they buy things. Read More

In today’s ever changing society the consumer, small business and corporate entities rely so heavily on finance as an everyday occurrence that many different products have become available.  ‘The Finance Maze” series will lead you through a number of different options available in the market from the small through to the large lending products.

Consumer Finance

The consumer uses finance for anything from buying a TV, car or boat through to the home they live in and there are many different ways to procure these items, some more expensive than others. Let’s have a look at each market segment to see where the advantages are.

Example:         purchase of a new Flat Screen TV for $3,000.

Mum and Dad go out to buy a new flat screen TV from a major retailer.  Read More

These days it can be difficult to source business financing, with stricter guidelines and lending criteria from traditional financiers.  For many businesses experiencing cash flow, factoring may be an option to consider.

Just what is factoring?  It is the process of selling your receivables to a factor at a discount, and receiving cash for them timely rather than waiting for the normal customer payment cycle to complete.  The factor will then take over the collections and administration of these outstanding invoices.  It is not a loan, but a sale of a financial asset.

Factoring is ideal for fast growing companies who are squeezed for cash, or for businesses who invoice goods and services on credit terms.  It is not suitable for businesses who issue progress claims (such as building contractors), retailers or professional services.

There are three main differences between factoring as a source of finance, and bank loans.  Firstly, the emphasis is on the value of your receivables on your balance sheet rather than the value or credit worthiness of your business.  Secondly, it is a sale of a financial asset rather than a loan, and finally, there are three parties to the factoring arrangement (your business, your customer, the factor) rather than two (you and your bank).

Invoice discounting is a form of factoring for businesses who need to access the money tied up in their receivables, but still want to maintain and manage their own ledger.  Your customers will not be aware that you have sold their invoices.  For businesses who lack the expertise or resources to manage their debtors ledger, or are undergoing rapid growth, this is a suitable option.