Frequently Asked Questions

Yes, interest only (IO) repayment structures are widely available for both commercial investment loans and owner-occupied commercial loans. In fact, IO terms are more common in commercial lending than residential.

Commercial lenders typically offer:

• Initial IO periods of 1-5 years
• Potential for extended IO periods with strong applications
• Renewal options at the end of the IO term (subject to reassessment)

Benefits of IO structures for commercial borrowers include:

• Improved initial cash flow
• Maximised tax deductions for investment properties
• Alignment with development or refurbishment strategies
• Flexibility during business establishment or expansion phases

Lenders assess IO applications based on:

• The property's income-generating capacity
• Loan-to-Value Ratio (typically stricter for IO loans)
• Your exit strategy at the end of the IO period
• Overall business or investment strategy
• The strength of the lease covenant(s)

We can help you determine whether an IO structure aligns with your commercial property strategy and identify lenders offering optimal IO terms for your situation.

Yes, 100% finance is available for equipment purchases under the right circumstances. This option allows you to acquire necessary equipment without impacting your cash reserves or working capital.

Eligibility for 100% Finance:

• Business Longevity: Typically available if you've been operating for 2+ years
• Property Ownership: Most lenders require directors or the business to own property
• Financial Performance: Demonstrated sustainable cash flow and profitability
• Equipment Type: More readily available for standard equipment with established resale value
• Credit History: Clean credit history preferred, though some exceptions apply

100% Finance Beyond Purchase Price: In some cases, you can finance more than just the equipment cost:

• GST Financing: The GST component can be included in the finance
• Delivery & Installation: These costs can often be incorporated
• Extended Warranties: Can be added to the finance amount
• Software & Implementation: Associated technology costs may be included
• Initial Service Agreements: Some lenders will include maintenance packages

Considerations for 100% Finance:

• Slightly higher interest rates may apply compared to scenarios with deposits
• Loan terms may be shorter to manage risk
• Additional security might be required through director guarantees
• Early payout figures may be higher in the initial term
• Some specialised or custom equipment may still require deposits

For businesses with less than 24 months trading history, 100% finance may still be accessible if you have:

• Strong property security
• Exceptional industry experience
• Confirmed contracts or purchase orders
• Significant director assets
• Strategic supplier relationships

We can assess your eligibility for 100% equipment finance and identify the most competitive options available for your specific situation.

Yes, there are several scenarios where you can finance equipment without an ABN (Australian Business Number), though the approach differs from standard business equipment finance:

Business Vehicle Finance Without ABN:

• Must demonstrate business use (typically >50% business usage)
• Can provide evidence through:
  • Car allowance shown on payslips
  • Employer letter confirming business vehicle requirement
  • Evidence of regular business travel or client visits
  • Reimbursement history for vehicle expenses
• Assessment based primarily on personal income and credit history
• Standard consumer lending regulations apply
• May have different tax implications than ABN-registered business finance

Personal Asset Finance: Equipment for personal use doesn't require an ABN and includes:

• Cars, motorcycles, and recreational vehicles
• Boats, jet skis, and marine equipment
• Caravans and camper trailers
• Home solar systems and power equipment
• Hobby equipment with personal use designation Finance is assessed on personal income and credit standing, with consumer lending protections.

Hobby Farm Equipment:

• Small-scale agricultural equipment for non-commercial farming
• Assessment based on personal income rather than farm revenue
• Examples include small tractors, ATVs, irrigation systems
• Usually requires declaration of hobby farm status
• May have limitations on equipment size/value

New Business Formations: If you're in the process of establishing a business:

• We can guide you through obtaining an ABN if required
• Provisional finance approvals may be possible pending ABN registration
• Interim financing options using personal lending until business structures are finalised
• Bridge financing that transitions to business lending post-establishment

Working without an ABN does typically limit some financing options, particularly for larger equipment purchases or specialised business assets. We can advise on the most appropriate approach based on your specific circumstances and intended equipment use.

Yes, annual insurance premiums and similar large operational expenses can be financed through specialised products such as Premium Funding or Insurance Premium Funding. These solutions spread large annual payments across more manageable monthly instalments, helping preserve cash flow while maintaining essential coverage.

Premium Funding Covers:

• Business insurance premiums
• Professional indemnity insurance
• Public liability insurance
• Workers compensation premiums
• Fleet and equipment insurance
• Industry-specific insurance requirements
• Director and officer liability insurance
• Cyber insurance and specialised coverages

Key Features:

• Typically covers 70-80% of the insurance period (e.g., 8-10 months of a 12-month policy)
• Simple documentation and rapid approval
• Minimal financial disclosure for established businesses
• Amounts from $5,000 to $500,000+ available
• Direct payment to insurers ensuring policy activation
• Preserves other credit facilities for growth opportunities
• Separate from equipment and other business finance

Benefits of Premium Funding:

• Improves cash flow management by spreading large payments
• Allows you to secure annual policy discounts rather than paying monthly
• Keeps credit cards and overdrafts free for other expenses
• Ensures critical insurance remains active
• Simple, paperless application process
• Quick approval with minimal documentation
• No capital requirement for critical business protection

Application Process:

1. Provide insurance invoice/renewal notice
2. Complete simple application form
3. Receive approval (often within hours)
4. Sign digital acceptance
5. Lender pays insurer directly
6. Repay over agreed term (typically 10 months)

For businesses with multiple insurance policies, consolidated premium funding can simplify management by bundling several policies under one funding arrangement with a single monthly payment. This is particularly valuable for businesses with diverse insurance requirements across different operational areas.

Yes, we can assist in identifying and accessing relevant government grants, incentives, and finance schemes applicable to your agricultural operation. Our comprehensive approach integrates these opportunities with traditional equipment finance to maximise your farm's financial position.

Agricultural Support Programs We Navigate:

• Federal and state equipment upgrade incentives
• Drought and disaster recovery assistance programs
• Sustainability and environmental practice grants
• Young farmer establishment schemes
• Regional development initiatives
• Farm business improvement programs
• Water efficiency and irrigation modernisation funding
• Technology adoption and innovation grants

Our Grant Integration Process:

1. Assessment of your eligibility for current programs
2. Identification of equipment purchases qualifying for incentives
3. Structuring finance to optimise grant utilisation
4. Timing finance applications to align with grant cycles
5. Documentation support for grant applications
6. Coordination between grant providers and financiers
7. Ongoing monitoring of new program opportunities

Finance Solutions Complementing Grants:

• Bridge finance while grant applications are processed
• Structured finance for the non-grant portion of purchases
• Refinancing options when retrospective grants are received
• Equipment finance that meets grant program requirements
• Documentation that satisfies both finance and grant criteria

Key Agricultural Programs (Regularly Updated):

• Rural Investment Corporation (RIC) loan schemes
• State-based primary producer assistance
• Regional investment incentives
• Tax incentives for primary producers
• Specific industry development programs
• Natural disaster recovery assistance
• Sustainability and emissions reduction initiatives

By combining our equipment finance expertise with knowledge of available agricultural assistance programs, we help ensure your farm benefits from all available financial support while accessing the equipment needed for productive and sustainable operations.

Commercial property finance falls into two distinct categories, each with different lending characteristics and considerations:

Owner-Occupied Commercial:

• Property purchased for use in your own business operations
• Lenders assess both property and business viability
• Typically involves GSA over the operating business
• May offer slightly higher LVRs (up to 70-80%)
• Interest rates often more competitive
• Allows claiming occupancy costs against business income
• Offers control over premises and potential for capital improvements

Commercial Investment:

• Property purchased to lease to third-party tenants
• Assessment focuses on rental income and tenant quality
• Lending primarily secured against the property itself
• Maximum LVRs typically 65-70%
• Interest rates slightly higher than owner-occupied
• Tax benefits include depreciation and interest deductibility
• Success heavily influenced by tenant selection and lease structure

Key differences in lending assessment:

• Owner-Occupied: Greater focus on business performance, serviceability, and industry outlook
• Investment: Greater focus on lease strength, tenant quality, and property marketability

Hybrid scenarios are also possible, such as:

• Partially occupying a building while leasing remaining space
• Property owned in a separate entity and leased to your operating business
• Purchasing with future owner-occupation in mind

We can help you determine which approach best suits your business and investment goals, structuring finance accordingly.

Equipment finance offers considerable flexibility regarding deposits, with many options requiring minimal or even zero upfront contribution:

Zero Deposit Options:

• Available for established businesses with strong financials
• Typically requires home ownership as additional security
• More readily available for standard equipment with good resale value
• Often accessible when you've been in business for 2+ years
• May require additional security through a General Security Agreement

Low Deposit Options (5-10%):

• Suitable for most established businesses
• Balances affordability with favourable interest rates
• Reduces overall borrowing costs over the finance term
• May provide access to a wider range of lenders
• Often sufficient for less specialised equipment

Standard Deposit Scenarios (20%):

• Typically required for specialised or custom equipment
• May be needed for newer businesses (<2 years trading)
• Often applies when limited financials are available
• Can help offset higher risk scenarios (e.g., previous credit issues)
• Sometimes required for export equipment or unusual assets

Alternative to Deposits:

• Using historical financial performance instead of cash deposit
• Providing additional security through other unencumbered assets
• Cross-collateralisation with existing financed equipment
• Director guarantees or related entity guarantees
• Trade-ins of existing equipment to offset new purchases

Low-doc products are particularly valuable for businesses seeking to preserve capital, with many lenders offering streamlined assessment for smaller equipment purchases without the need for full financial disclosure.

Each lender has specific criteria regarding deposits, and requirements can vary based on both borrower profile and equipment type. We can help you identify options that minimise upfront costs while maintaining competitive interest rates.

The loan application process with Podium Money is streamlined and supportive:

1. Initial Consultation: Contact us to discuss your needs and goals with one of our experienced brokers.
2. Financial Assessment: We'll collect information about your income, expenses, assets, and liabilities to determine your borrowing capacity.
3. Documentation Collection: You'll need to provide supporting documents such as:
   • Identification (passport, driver's licence)
   • Income verification (pay slips, tax returns, employment contracts)
   • Asset details (property, investments, vehicles)
   • Liability information (existing loans, credit cards)
   • Property details if already selected
4. Loan Selection: Based on your needs and financial position, we'll recommend suitable lenders and loan products.
5. Application Submission: We'll prepare and submit your application to the selected lender, ensuring all documentation is complete and properly presented.
6. Application Monitoring: We'll actively track your application's progress, addressing any lender queries promptly.
7. Approval: Once approved, we'll explain all terms and conditions before proceeding.
8. Settlement Coordination: We'll work with your solicitor/conveyancer and the lender to ensure a smooth settlement process.

Throughout this journey, we handle the complex paperwork and lender communication, keeping you informed at every stage and advocating on your behalf to secure the best possible outcome.

Your credit score is an important factor in loan applications. There are several ways to check it:

• Through Podium Money: We can assist you in obtaining a comprehensive credit report as part of your application process.
• Free Online Services: Several reputable credit reporting bodies offer free access to your credit report:
  • Equifax (www.equifax.com.au)
  • Experian (www.experian.com.au)
  • Illion (www.illion.com.au)
• Credit Score Providers: Services like Credit Simple and Credit Savvy provide free credit scores and monitoring.

When checking your credit score, it's important to:

• Verify all information is accurate
• Check for any incorrectly reported defaults
• Look for any credit enquiries you don't recognise
• Understand the factors affecting your score

If you discover any errors, we can guide you through the dispute resolution process. If your score is lower than expected, we can recommend strategies to improve it before applying, or identify lenders with more flexible credit criteria.

We offer comprehensive development finance solutions for projects across the spectrum, from small-scale residential developments to major commercial enterprises. Our approach encompasses the entire development lifecycle, from land acquisition through to project completion.

Development Types We Support:

• Residential subdivisions and land releases
• Apartment and multi-unit residential projects
• Commercial buildings and office spaces
• Mixed-use developments combining residential and commercial
• Industrial estates and warehousing
• Specialised developments (healthcare, childcare, aged care)

Funding Structures Available:

• Land Banking Facilities: Securing sites for future development with longer-term financing
• Construction Finance: Stage-based funding released against completed works
• Senior Debt: Primary financing secured against the development
• Mezzanine Finance: Supplementary funding to bridge equity gaps
• Joint Venture Funding: Partnership structures with equity investors
• Progress Payment Facilities: Aligning funding with development milestones

Our Development Finance Process:

1. Initial Feasibility Assessment: Review of project viability, costings, and timeline
2. Funding Strategy Development: Structuring optimal debt and equity arrangements
3. Lender Selection: Matching your project with suitable development finance providers
4. Application Packaging: Comprehensive preparation of all required documentation
5. Approval Management: Navigating pre-conditions and approval requirements
6. Settlement Coordination: Ensuring smooth establishment of facilities
7. Ongoing Support: Assistance with drawdowns, variations, and lender requirements

Key Advantages of Our Development Finance Service:

• Access to both traditional and non-traditional funding sources
• Expertise in structuring complex multi-tiered funding solutions
• Strong relationships with quantity surveyors and project managers
• Experience navigating pre-sale requirements and funding conditions
• Understanding of construction methodologies and associated risks
• Strategic approach to maximising development returns

Whether you're an experienced developer or undertaking your first project, we'll work with you to create a tailored funding solution that optimises your development outcomes.

We provide comprehensive finance solutions for imported equipment, addressing the additional complexities that international purchases entail. Our approach covers the entire importation process, from initial order to operational deployment.

Our Imported Equipment Finance Covers:

• Purchase price in foreign currency
• International shipping and freight costs
• Import duties and taxes
• Customs clearance fees
• Local delivery and installation
• Commissioning and testing
• Training and initial support
• Compliance modifications for Australian standards

Specialised Import Finance Features:

• Foreign currency management options
• Exchange rate risk mitigation
• Letters of credit and trade finance solutions
• Progress payment structures for manufacturing periods
• Pre-shipment and post-arrival funding
• Consolidated finance for all importation costs
• Documentation support for international transactions

Importation Process Support:

1. Pre-Order Stage: Finance pre-approval before committing to purchase
2. Order Confirmation: Deposit funding and payment security
3. Manufacturing Period: Progress payment management if required
4. Shipping Phase: Freight and insurance coverage
5. Arrival Processing: Customs, duty, and compliance financing
6. Local Deployment: Installation and commissioning costs
7. Operational Phase: Standard equipment finance commences

Benefits of Comprehensive Import Finance:

• Single finance solution for all import-related costs
• Simplified cash flow management for complex transactions
• Reduced administrative burden through consolidated financing
• Clear documentation for tax and accounting purposes
• Expertise in navigating international equipment purchases
• Protection against exchange rate fluctuations during lengthy import processes
• Relationship management with both suppliers and shipping entities

Whether you're importing machinery from Europe, equipment from North America, or specialised technology from Asia, our import-focused finance solutions ensure a smooth transition from international purchase.

Our agricultural equipment finance solutions are specifically designed to accommodate the seasonal nature of farming income. We recognise that agricultural cash flow rarely occurs in even monthly patterns, and our finance structures reflect this reality.

Seasonal Payment Options:

• Harvest-Aligned Payments: Larger payments during harvest/sale periods with reduced payments during growing seasons
• Skip Payment Programs: Predetermined payment holidays during lower income periods
• Annual Payment Structures: Single annual payment aligned with major income events
• Irregular Payment Schedules: Customised payment timing matched to your specific farm income pattern
• Step Payments: Lower initial payments increasing as crops/livestock mature
• Split Payment Terms: Different payment structures across different seasons

Benefits of Seasonal Structuring:

• Aligns financing costs with income timing
• Reduces financial stress during planting/growing phases
• Improves working capital management throughout the season
• Accommodates weather-dependent income fluctuations
• Supports cash flow during expansion or diversification
• Enables equipment acquisition when needed, not just when income is available

Seasonal Finance Planning Process:

1. Analysis of your agricultural production cycle
2. Identification of key income and expense periods
3. Review of historical seasonal patterns
4. Assessment of equipment usage intensity across seasons
5. Development of payment structure aligned with cash flow
6. Regular review and adjustment as farm operations evolve

Our agricultural specialists understand the unique challenges of farming operations across different sectors, from broadacre cropping to intensive horticulture and livestock production. This industry knowledge enables us to create finance solutions that work with your farm's natural income cycle rather than against it.

We have extensive experience financing mining equipment, with specialised knowledge of this sector's unique challenges and opportunities. Our approach addresses both the technical aspects of mining equipment and the cyclical nature of mining operations.

Mining Equipment We Finance:

• Heavy earthmoving machinery and excavators
• Underground mining equipment
• Drilling and boring equipment
• Processing plant and crushing equipment
• Mining trucks and specialised transport
• Support and maintenance vehicles
• Conveyor systems and materials handling
• Specialised attachments and components

Our Mining Equipment Finance Expertise:

• Understanding of equipment specifications and applications
• Knowledge of major manufacturers and their resale markets
• Valuation expertise for both new and used mining equipment
• Familiarity with mine site compliance requirements
• Awareness of equipment longevity in harsh conditions
• Recognition of specialised modifications and their value
• Experience with both ownership and rental-purchase models

Tailored Mining Equipment Finance Features:

• Flexible terms aligned with project timelines
• Seasonal or production-based payment structures
• Balloon payment options reflecting equipment longevity
• Finance solutions for both contractors and mine operators
• Refinance options for existing fleets
• Finance for equipment importation and modifications
• Solutions for both specialised and multi-purpose equipment

Considerations for Mining Equipment Finance:

• Equipment productivity and output specifications
• Projected operational hours and maintenance requirements
• Site conditions and impact on equipment lifespan
• Contract terms for contracted mining operations
• Equipment versatility for redeployment if needed
• Manufacturer support and parts availability
• Compliance with mining industry regulations

Our mining industry focus allows us to structure finance solutions that accommodate the sector's distinctive operational patterns while managing the significant capital requirements of modern mining equipment.

The length of time you've been in business significantly influences equipment finance options, though solutions exist for businesses at every stage:

Established Businesses (2+ Years):

• Access to the widest range of lenders and products
• Most competitive interest rates
• Higher approval limits without additional security
• Streamlined application processes
• Potential for 100% finance without deposits
• Low-doc options with minimal financial documentation
• Greater flexibility in terms and payment structures

Developing Businesses (1-2 Years):

• Moderate range of lending options
• May require some additional security
• Typically need to demonstrate consistent income
• ABN and GST registration usually required
• Financial statements for the trading period
• Potentially higher rates than longer-established businesses
• Deposit requirements typically 10-20%

Start-up Businesses (0-12 Months):

• Limited but viable finance options
• Generally requires security (property or directors' guarantees)
• Industry experience often considered crucial
• Business plans and cash flow projections necessary
• Higher deposit requirements (typically 20-30%)
• Contracts or confirmed work orders strengthen applications
• Shorter initial terms with refinance opportunities

Alternative Qualification Factors: If your business has limited trading history, we can leverage other strengths:

• Director's industry experience
• Contracts and committed revenue
• Personal financial strength of directors
• Relationships with established businesses
• Franchise association (for franchisees)
• Essential equipment for contracted works
• Strong business plan with market validation

Regardless of your business stage, we can identify appropriate finance solutions that support your equipment needs while building a foundation for broader financing options as your business matures.

Pre-approvals are typically valid for about 90 days. This timeframe allows you to search for a property with confidence while ensuring the assessment is based on reasonably current financial information.

If your pre-approval expires before you find a suitable property, we can help you refresh your application. This process is usually straightforward if your financial circumstances haven't significantly changed.

Some lenders may extend pre-approvals beyond the initial period upon request, which we can facilitate for you if needed.

Equipment finance approvals typically remain valid for approximately 90 days, giving you time to finalise equipment selection, negotiate with suppliers, and arrange delivery. However, validity periods can vary based on several factors:

Standard Validity Periods:

• Major bank approvals: 60-90 days
• Non-bank lenders: 30-90 days
• Private lenders: Often 30 days with extensions available
• Specialised equipment lenders: May offer longer periods for custom equipment

Factors Affecting Approval Duration:

• Economic conditions and changing market environments
• Lender policy updates and credit appetite
• Your business circumstances and any material changes
• The type of equipment being financed
• Whether the approval is conditional or unconditional

Extending an Approval: If your approval is approaching expiration, several options are available:

• Request an extension from the lender (often possible for 30+ days)
• Provide updated information to support extension requests
• Reapply if significant time has passed (typically a streamlined process)
• Consider alternative lenders if the original approval cannot be extended

When Reapproval Is Necessary:

• If your financial situation changes materially
• If equipment specifications or pricing changes significantly
• If more than 90 days have passed since initial approval
• If the lender has updated their policies in the interim
• If you decide on different equipment than originally approved

Our Approach to Approvals: We maintain close communication with lenders throughout the approval period, monitoring any potential expiration and proactively managing extensions when needed. We also ensure you understand any time limitations when approval is granted, helping you plan equipment acquisition accordingly.

For longer-term equipment planning, we can provide indicative pre-approvals that outline likely finance parameters without formal credit assessment, giving you confidence in budget planning while maintaining flexibility.

Determining your optimal borrowing amount involves more than just calculating what a lender might approve. We take a comprehensive approach that considers:

• Your income and employment stability
• Existing debts and financial commitments
• Living expenses and lifestyle needs
• Future plans and potential changes in circumstances
• Your comfort level with debt
• Long-term financial goals

Once we understand your complete financial picture, we'll complete a detailed serviceability calculation and recommend an appropriate borrowing amount that balances your property goals with sustainable financial management.

Remember, borrowing your maximum capacity doesn't always align with your best interests. We prioritise finding a comfortable repayment level that allows you to maintain your lifestyle while building wealth.

Our streamlined equipment finance process is designed to get your business operating with new equipment as quickly as possible. Timeframes vary based on the complexity of your requirements:

Same-Day Approval:

• Available for straightforward applications
• Typically for established businesses with strong financials
• Standard equipment types with clear market values
• Complete documentation provided upfront
• Existing clients with proven track records

24-48 Hours (Standard Requests):

• Most common timeframe for equipment finance
• Covers most business scenarios and equipment types
• Allows for comprehensive assessment without delays
• Sufficient for most business planning needs
• Balance between speed and optimal structuring

3-5 Days (Complex Situations):

• Multi-asset packages with diverse equipment types
• Specialised or custom-manufactured equipment
• Higher value transactions requiring additional scrutiny
• Intricate ownership structures or trust arrangements
• New businesses or those with limited trading history

Custom Timeframes (Large Facilities):

• Major fleet rollouts or full production line financing
• International equipment purchases requiring coordination
• Staged settlements aligned with delivery schedules
• Complex security arrangements across multiple entities
• Tailored repayment structures requiring special approval

We prioritise both speed and accuracy in our equipment finance process, ensuring you receive not only timely approval but also the most appropriate finance structure for your specific needs. Our established lender relationships and deep understanding of their requirements allow us to expedite applications without compromising on quality.

Yes, equipment finance is still accessible even if you have a small paid default on your credit file. While defaults can affect lending decisions, a strategic approach can help secure approval with competitive terms:

Key Considerations for Applications with Paid Defaults:

• Age of Default: Older paid defaults (2+ years) have less impact
• Size of Default: Small defaults (<$1,000) are viewed more leniently
• Payment Status: Fully paid defaults are significantly better than unpaid
• Explanation Context: Legitimate reasons for the default strengthen your case
• Overall Credit Profile: Strong recent credit history can offset past issues
• Business Performance: Solid financial performance helps overcome credit concerns

Documentation to Strengthen Your Application:

• Evidence that the default has been paid (settlement confirmation)
• Written explanation of the circumstances leading to the default
• Bank statements showing consistent recent payment behaviour
• Business financials demonstrating strong cash flow
• ATO portal showing tax compliance
• Asset and liability statement showing overall financial position

Lender Selection Strategy:

• Some lenders are more flexible with past credit issues than others
• Specialist non-bank lenders often have more accommodating policies
• Secured lending against high-quality equipment improves approval chances
• Private and alternative lenders may consider paid defaults immaterial
• Industry-specific lenders may prioritise equipment expertise over credit history

Potential Adjustments to Finance Terms:

• Slightly higher interest rates may apply
• A deposit might be required (typically 10-20%)
• Loan term might be shorter initially
• Additional security may strengthen the application
• Director guarantees might be necessary

We specialise in finding solutions for clients with less-than-perfect credit histories. By presenting your application appropriately and targeting understanding lenders, we can help you secure equipment finance despite past credit challenges.

Yes, we can help you access funds quickly to meet supplier payment deadlines or other urgent business needs. Several financing options are available that specifically address short-term cash flow requirements:

Unsecured Business Loans:

• Fast approval and funding (often within 24-48 hours)
• Minimal documentation requirements
• Loan amounts from $5,000 to $500,000
• Terms typically 3-36 months
• Fixed repayment schedule for easy budgeting
• No asset security required
• Application often uses bank statement data for quick assessment

Equipment Refinance:

• Release equity from unencumbered business equipment
• Higher loan amounts available against quality assets
• Potentially lower interest rates than unsecured options
• Longer terms available (up to 5 years)
• Can include multiple equipment items in one facility
• Often processed within 2-3 business days

Debtor Finance Solutions:

• Convert outstanding invoices into immediate cash
• Ongoing facility that grows with your sales
• Advance rates typically 80% of invoice value
• Remaining 20% received when customer pays
• Particularly useful for businesses with strong sales but extended payment terms
• Can be established quickly with ongoing availability

Capital Raising Against Equipment:

• Similar to equipment refinance but for items under finance
• Access equity in equipment that's partially paid off
• Can work alongside existing finance arrangements
• Uses the residual value in financed equipment
• Requires cooperation with existing financier

Approval Considerations:

• Recent bank statements showing business activity
• Evidence of trading history (ABN/GST registration)
• Minimal credit issues (though minor issues can be worked around)
• Property ownership often helps but isn't always essential
• For larger amounts, basic financial statements may be required

Once approved, funds are typically deposited directly to your business account, allowing immediate supplier payments. We can assess your situation, recommend the most appropriate solution, and facilitate rapid application processing to meet your timeline.

Yes, equipment finance is absolutely accessible for start-ups and new businesses, though the approach differs from established business financing. We specialise in helping new ventures acquire the equipment they need to commence and grow operations.

What Lenders Look For With Start-ups:

• Industry Experience: Previous relevant employment or business ownership
• Personal Financial Strength: Property ownership and personal credit history
• Business Planning: Comprehensive business and financial projections
• Initial Capital: Evidence of your own investment in the business
• Secured Work: Contracts, letters of intent, or confirmed projects
• Market Research: Validation of business concept and market opportunity

Documentation to Strengthen Your Application:

• Detailed business plan with market analysis
• Cash flow forecasts for at least 12-24 months
• Personal asset and liability statements
• Evidence of industry qualifications and experience
• Copies of secured contracts or committed work
• Supplier quotes and equipment specifications
• Proof of initial business investment
• Personal tax returns for business principals

Typical Start-up Finance Structures:

• Higher deposits often required (typically 20-30%)
• Shorter initial finance terms with refinance options
• Personal guarantees from directors/principals
• Possibly secured against residential property
• Potentially higher interest rates until track record established
• Smaller initial limits with growth options
• Equipment with strong resale value preferred

Start-up-Friendly Finance Options:

• Chattel mortgages with flexible terms
• Equipment rental with purchase options
• Vendor finance through equipment suppliers
• Private lending with commercial terms
• Combination structures using multiple security types
• Progressive facilities that grow with proven performance

Government and Alternative Support:

• Government-backed business loan schemes
• State-based small business finance programs
• Industry-specific start-up support initiatives
• Vendor partnerships and extended payment terms
• Equipment rental with long-term finance conversion options

We take a holistic approach to start-up finance, considering both your immediate equipment needs and longer-term business growth. By presenting your application strategically and targeting appropriate lenders, we can help your new venture secure the equipment essential for success.

There's no one-size-fits-all answer—the best option depends on your personal circumstances, financial goals, and market outlook:

Fixed Rate Advantages:

• Payment certainty for budgeting
• Protection against interest rate rises
• Often competitive rates for initial terms

Variable Rate Advantages:

• Flexibility to make unlimited additional repayments
• Access to features like offset accounts
• Immediate benefit if interest rates fall
• No break costs if you sell or refinance

Split Loan Advantages:

• Balances certainty with flexibility
• Provides a hedge against interest rate movements
• Allows access to variable loan features while fixing a portion

The best strategy also depends on:

• Current interest rate environment and future forecasts
• Your cash flow requirements
• How long you plan to hold the property
• Your risk tolerance and desire for certainty
• Whether features like offset accounts are important to you

We'll analyse your specific situation and help you make an informed decision that aligns with your short and long-term financial goals.

Yes, many lenders offer "sale and leaseback" or "refinance" options that allow you to access funding for equipment you've recently purchased. This approach helps release capital back into your business while still benefiting from equipment finance structures.

Timeframe Considerations:

• Most lenders offer this option within 60-90 days of purchase
• Some specialist lenders may extend this to 6 months
• The sooner after purchase, the more options available
• Clear proof of payment and ownership is essential

Documentation Requirements:

• Original purchase invoice showing payment in full
• Proof of payment (bank statement showing the transaction)
• Equipment identification (serial numbers, registration, etc.)
• Current photos of the equipment in good condition
• Valuation may be required for older purchases

Process Overview:

1. Equipment Verification: May include physical inspection or photo evidence
2. Valuation Assessment: Determining current market value
3. Finance Application: Standard assessment of business credentials
4. Settlement: Funds paid to the account that originally purchased the asset
5. Security Registration: Lender registers their interest in the equipment

Advantages of Post-Purchase Finance:

• Replenishes working capital without disrupting equipment use
• Can improve cash flow after significant outlay
• Potentially beneficial for tax planning (consult your accountant)
• Structures equipment acquisition within overall financial strategy
• May allow bundling of several recent purchases into one facility

Limitations to Consider:

• Finance amount typically based on purchase price or current value (whichever is lower)
• Some lenders require business property ownership for this facility
• Private sales may have additional verification requirements
• Heavily customised equipment might need specialised valuation
• Very small ticket items may not qualify

Whether you need to replenish working capital or simply restructure a recent purchase for improved financial management, we can help arrange appropriate post-purchase finance for your equipment.

Absolutely. A pre-approval gives you a clear indication of how much a lender might allow you to borrow based on your financial circumstances. This provides several advantages:

• Confidence to bid at auctions or make offers knowing your likely borrowing capacity
• Stronger negotiating position as sellers see you as a serious buyer
• More efficient property search by focusing on your realistic price range
• Faster processing of your full application once you find a property

While a pre-approval isn't a guarantee of final approval (as the lender will still need to assess the specific property and conduct a valuation), it provides valuable peace of mind during your property search.

Break costs (or exit fees) can apply if you repay your fixed rate mortgage before the end of the fixed term. These costs compensate the lender for the economic loss they incur when you exit a fixed contract early.

Break costs are calculated based on:

• The remaining time in your fixed term
• Your loan amount
• The difference between your fixed rate and current market rates
• The lender's funding arrangements

Break costs can be substantial, particularly if interest rates have fallen significantly since you fixed your loan. They're most commonly incurred when:

• Selling the property before the fixed term ends
• Refinancing to another lender
• Making substantial additional repayments beyond allowed thresholds
• Restructuring your loan significantly

Before fixing your loan, we'll discuss potential break cost scenarios so you can make an informed decision. If you're considering breaking a fixed loan, we can request a break cost calculation from your lender to help you determine if it's financially beneficial despite the fee.

Option periods within a commercial lease give tenants the right (but not the obligation) to extend their tenancy beyond the initial lease term. These options provide benefits to both parties:

For Tenants:

• Business continuity and security
• Protection against relocation costs
• Leverage in lease negotiations
• Long-term planning capabilities
• Capital investment protection

For Landlords/Investors:

• Reduced vacancy risk
• Stable income stream
• Enhanced property value for finance purposes
• Reduced re-leasing costs

A typical option clause might provide for:

• Specific notice periods (usually 3-6 months before lease expiry)
• Predetermined option periods (e.g., 3+3+3 years)
• Method for determining the new rental rate
• Conditions that must be satisfied to exercise the option (no lease breaches, etc.)

From a financing perspective, properties with strong tenants and multiple option periods often secure more favourable lending terms. When structuring commercial property finance, we carefully consider the quality of lease options as they directly impact the property's income security.

Outgoings refer to the ongoing operational costs associated with owning and maintaining a commercial property. Unlike residential properties, where the landlord typically covers most expenses, commercial property outgoings are often passed on to tenants through the lease structure.

Common commercial property outgoings include:

• Council and water rates
• Land tax (in certain lease structures)
• Building insurance
• Property management fees
• Common area maintenance
• Air conditioning and elevator servicing
• Security systems and services
• Cleaning of common areas
• Repairs and maintenance
• Compliance costs

Commercial leases typically specify outgoings arrangements as:

• Net Lease: Tenant pays some outgoings
• Double Net Lease: Tenant pays most outgoings except structural maintenance
• Triple Net Lease: Tenant pays virtually all outgoings including structural maintenance

The outgoings structure significantly impacts both the tenant's operational costs and the landlord's net return. When financing commercial property, lenders consider the outgoings arrangement as it affects the property's income security and value.

Beyond the deposit and purchase price, several key expenses are typically involved:

• Stamp Duty: A state government tax based on the property value (first home buyers may be eligible for concessions)
• Conveyancing/Solicitor Fees: For legal assistance with the property transfer ($1,000-$2,500)
• Lender Application Fees: Though many lenders waive these for standard loans
• Property Valuation: Sometimes covered by the lender
• Building and Pest Inspections: Highly recommended before purchase ($300-$800)
• Lenders Mortgage Insurance (LMI): If borrowing more than 80% of the property value
• Transfer Fees: Government charges for transferring the property title
• Council and Water Rates Adjustments: Your share from settlement date
• Home Insurance: Required before settlement
• Moving Costs: Don't forget to budget for the move itself

We'll provide a comprehensive breakdown of these costs for your specific situation, ensuring you're fully prepared financially before proceeding.

When it comes to residential mortgage lending, there is generally no cost to you for using our services. We are paid a commission by the lender once your loan has settled. This means you receive expert guidance and support without out-of-pocket broker fees.

It's important to note that there are other costs associated with buying property and taking out a loan, such as:

• Lender application fees (though many lenders waive these)
• Government charges (stamp duty, mortgage registration)
• Legal/conveyancing fees
• Property valuation fees
• Building and pest inspections
• Lenders Mortgage Insurance (if applicable)

We'll provide a comprehensive breakdown of all potential costs before you proceed, ensuring complete transparency.

You can purchase a property with as little as 5% genuine savings, depending on your individual circumstances and the lender's criteria. However, different deposit amounts offer various advantages:

• 5-10% deposit: Accessible entry point, but will incur Lenders Mortgage Insurance (LMI)
• 10-15% deposit: Reduced LMI premiums
• 20%+ deposit: Typically avoids LMI altogether and may secure better interest rates

Keep in mind there are additional costs associated with buying a property (stamp duty, legal fees, etc.), so ensure you have sufficient funds to cover these beyond your deposit.

For first home buyers, various government incentives and grants may be available to help with your deposit or reduce other purchase costs. We can guide you through these options based on your eligibility.

Commercial loan applications require more comprehensive documentation than residential loans, reflecting the additional complexity and risk assessment involved. Requirements vary based on loan type, property characteristics, and borrower structure, but typically include:

Business Documentation:

• 2-3 years of financial statements (Profit & Loss, Balance Sheet)
• Business and personal tax returns for the same period
• Current year management accounts and trading figures
• Business Activity Statements (BAS) for at least 12 months
• Detailed cash flow projections (particularly for new ventures)
• Business plan or strategy overview (for growth funding)
• Details of existing banking facilities and repayment history
• Entity structure diagrams for complex arrangements

Property Documentation:

• Contract of sale or formal valuation
• Lease agreements for all tenants
• Rental schedules and historical occupancy information
• Outgoings statements and expense history
• Building inspection or condition reports
• Council approvals and planning permits
• Environmental assessments (for industrial properties)
• Depreciation schedules if available

Personal Documentation:

• Identification documents for all directors/guarantors
• Personal asset and liability statements
• Income verification for guarantors
• Details of existing personal investments
• Statement of Financial Position for all related entities

For Development Finance:

• Development Approval from relevant authorities
• Detailed construction costings and quantity surveyor reports
• Builder credentials and history
• Pre-sale contracts (if applicable)
• Project timeline and milestone schedule
• Exit strategy and sales/leasing approach

We manage this process for you, helping gather and organise all required documentation to present your application in the strongest possible light. Our experience allows us to anticipate lender requirements and prepare comprehensive submissions that streamline the approval process.

Genuine savings refer to funds you have saved or accumulated over time from your income, demonstrating your ability to budget and save. Lenders value this as it shows financial discipline and capability to meet future mortgage repayments.

Generally, lenders like to see at least 5% of the property value in genuine savings held for a minimum of three months. Examples of genuine savings include:

• Regular deposits into savings accounts
• Term deposits and managed investments
• Shares and equity in other properties
• Additional repayments made on existing loans
• First Home Super Saver Scheme funds

Funds that typically don't count as genuine savings include:

• Gifts from family members
• Inheritance
• Tax refunds
• Sudden lump sum payments
• Borrowed funds

If you don't have sufficient genuine savings, we can explore lenders with more flexible policies or alternative ways to structure your application.

As your broker, we work as your dedicated advocate throughout the entire lending process. We:

• Take time to understand your unique financial situation and property goals
• Research and compare products from our panel of over 60 banks and lenders
• Identify the most competitive rates and optimal loan features for your needs
• Handle the entire application process from submission to settlement
• Liaise with lenders, solicitors, and other parties on your behalf
• Provide ongoing support and regular reviews of your lending arrangements

Our extensive lender relationships and industry expertise mean we can often secure better terms than you might achieve approaching lenders directly.

We offer a comprehensive range of equipment finance structures, each with distinct features and benefits to suit different business situations and tax positions:

Chattel Mortgage Benefits:

• You own the equipment from purchase date while the lender holds security
• GST credit can be claimed upfront on the purchase price (if registered)
• Interest expense is tax-deductible
• Depreciation can be claimed as a tax deduction
• Instant asset write-off options may be available for eligible businesses
• Loan establishment fees may be tax-deductible
• Flexible end-of-term options with no residual obligations
• Suitable for most business equipment purchases

Finance Lease Benefits:

• Use the equipment while the lender legally owns it
• Lease payments may be fully tax-deductible as operating expenses
• GST credits can be claimed on each lease payment (if registered)
• Off-balance sheet financing in certain circumstances
• Predetermined residual value at end of term
• Option to purchase, re-lease, or return the equipment at lease end
• Well-suited for equipment that requires regular upgrading

Operating Lease Benefits:

• True rental arrangement with no ownership obligations
• Fixed monthly payments covering use and often maintenance
• Payments typically 100% tax-deductible as operating expenses
• No residual value risk as you return the equipment at lease end
• Simplifies equipment management and upgrades
• May include maintenance, insurance, and other services
• Ideal for technology and rapidly depreciating equipment

Commercial Hire Purchase:

• Hire the equipment with an option to purchase at term end
• Regular instalments with a final payment to transfer ownership
• Similar tax benefits to chattel mortgage in many cases
• Clear ownership pathway with defined payment schedule
• Flexible deposit options to suit cash flow requirements
• Can be structured with or without GST financing

The optimal structure depends on your specific business circumstances, including:

• Cash flow requirements
• Tax position and entity structure
• Equipment type and expected useful life
• Balance sheet considerations
• Future upgrade or replacement plans
• Working capital management strategy

We'll work with you and your accountant to select the most advantageous finance structure for your equipment acquisition.

A balloon payment (also called a residual value) is a lump sum payment due at the end of your equipment finance term. This structure reduces your regular payments throughout the loan period, creating cash flow advantages while acknowledging the equipment's retained value.

How Balloon Payments Work:

• Your finance is structured with lower regular repayments
• A predetermined final payment is set for the end of the term
• The balloon typically represents the estimated residual value of the equipment
• When the term ends, you can refinance the balloon, pay it outright, or sell/trade the equipment

Typical Balloon Percentages:

• Vehicles and mobile equipment: 20-35% (based on term and usage)
• Heavy machinery: 15-25% (varies with expected wear)
• Technology equipment: 5-15% (due to faster depreciation)
• Specialised industrial equipment: 10-30% (depending on useful life)

Advantages of Balloon Structures:

• Lower monthly repayments improving cash flow
• Alignment of payments with equipment productivity
• Potential to upgrade equipment at term end
• Matching finance structure to equipment lifecycle
• Tax planning benefits (consult your accountant)
• Preserving working capital for other business needs

Considerations Before Choosing a Balloon:

• Higher total interest cost over the full finance term
• Need for a strategy to address the balloon at term end
• Potential for equipment value to fall below balloon amount
• Impact on upgrading options before the end of term
• Cash flow planning for larger final payment

End-of-Term Options:

1. Pay Out: Make the balloon payment and own the equipment outright
2. Refinance: Arrange new finance for the balloon amount
3. Trade-In: Use the equipment as a trade-in on newer equipment
4. Sell: Sell the equipment to cover the balloon (if market value permits)
5. Extend: Some lenders offer term extensions with restructured payments

We can help you determine whether a balloon payment structure suits your business situation, calculate optimal balloon percentages based on equipment type, and develop strategies for end-of-term management to support your broader equipment and financial planning.

A commercial lease agreement is a legally binding contract between a landlord and a business tenant governing the rental of commercial space. Unlike residential leases, commercial leases are highly negotiable and can significantly impact both property value and investment returns.

Key components of commercial leases include:

• Lease Term: Typically 3-10 years, often longer than residential leases
• Rent Structure: Base rent plus potential percentage of business turnover
• Rent Reviews: Methods and frequency of rent adjustments (annual CPI, market reviews)
• Outgoings: Specifies which operating expenses the tenant is responsible for
• Security: Bond, bank guarantee, or personal guarantees required
• Permitted Use: Restrictions on how the property can be used
• Maintenance Responsibilities: Clearly defined obligations for repairs
• Make Good Provisions: Requirements for returning the property at lease end
• Option Periods: Terms for lease extensions
• Assignment/Subletting Rights: Ability to transfer the lease to another party

Commercial leases significantly impact property value and financing—strong leases with reputable tenants can enhance borrowing capacity and loan terms. We consider lease details carefully when structuring your commercial finance.

A family guarantee (also called a family pledge or limited guarantee) involves a family member—typically parents—using their property's equity to help secure a portion of your loan. This arrangement:

• Reduces or eliminates the need for a cash deposit
• May help you avoid Lenders Mortgage Insurance
• Limits the guarantor's liability to a specific portion of the loan
• Can be released once sufficient equity has been built in your property

Important considerations for family guarantees include:

• The guarantor must own sufficient equity in their property
• The guarantor's property becomes security for the portion they guarantee
• The guarantor must seek independent legal advice before proceeding
• The arrangement affects the guarantor's borrowing capacity until released
• Clear exit strategies should be established from the outset

Family guarantees represent a significant commitment for all parties involved. We'll work with you and your family to ensure everyone fully understands the responsibilities and risks before proceeding.

A fixed rate loan has an interest rate locked in for a specific period, typically ranging from one to five years. During this fixed term:

• Your repayments remain exactly the same regardless of market interest rate changes
• You can budget with certainty, knowing precisely what your mortgage payments will be
• You're protected from rising interest rates during the fixed period
• If rates fall significantly, you won't benefit until your fixed term ends

Important considerations with fixed loans include:

• Limited additional repayment options with some lenders
• Potential break costs if you sell the property or refinance during the fixed term
• Typically fewer features than variable loans (though this varies by lender)
• What happens at the end of the fixed term (usually reverting to a variable rate)

Fixed loans are particularly suited to borrowers who value payment certainty or believe interest rates may rise in the near future.

A General Security Agreement (GSA) is a legal document that gives a lender security over all present and after-acquired property (PAAP) of a business or individual. This comprehensive security instrument effectively places a charge over all business assets, providing the lender with significant protection.

Key aspects of a GSA include:

• Coverage of tangible assets (equipment, inventory, vehicles)
• Coverage of intangible assets (receivables, contracts, intellectual property)
• Priority positioning against other creditors (when properly registered)
• Continuing security as new assets are acquired
• Specific enforcement rights if the borrower defaults

A GSA differs from specific security (like a mortgage over real estate) in that it:

• Covers multiple asset classes simultaneously
• Automatically extends to new assets as they're acquired
• Doesn't require individual asset registration
• Provides flexibility as business assets change over time

Most commercial lenders require a GSA in addition to specific property security, particularly for:

• Business loans beyond simple property finance
• Working capital facilities
• Equipment finance packages
• Trade finance arrangements
• Comprehensive business funding

The extensive security provided by a GSA often enables lenders to offer more favourable terms or higher loan amounts than would be possible with real property security alone.

A guarantee is a legally binding commitment where a person or entity (the guarantor) promises to repay a loan if the primary borrower fails to do so. In commercial lending, guarantees serve as an additional layer of security for lenders, often enabling borrowers to access funding that might otherwise be unavailable.

Guarantee types in commercial finance include:

• Personal Guarantees: Directors or shareholders guaranteeing company loans
• Corporate Guarantees: Related companies supporting each other's borrowing
• Limited Guarantees: Capped at a specific amount rather than the full loan
• Specific Security Guarantees: Secured by particular assets of the guarantor
• Joint and Several Guarantees: Multiple guarantors each liable for the full amount

Important considerations for guarantors include:

• Potential impact on personal assets if the guarantee is called upon
• Effect on personal borrowing capacity while the guarantee remains in place
• Relationship implications if business challenges arise
• Exit strategies to be released from the guarantee over time
• Risk mitigation through appropriate business structures

When structuring commercial finance, we work to balance lender security requirements with practical risk management for guarantors. This might include establishing limited guarantees, creating release criteria tied to business performance, or implementing security priority arrangements.

A comparison rate combines the interest rate with most fees and charges related to a loan, expressed as a single percentage figure. This standardised calculation:

• Includes the interest rate, establishment fees, ongoing fees, and most other charges
• Provides a more accurate representation of the loan's total cost
• Makes it easier to compare different loan products across lenders
• Is calculated based on a $150,000 loan over a 25-year term

It's important to note that while comparison rates are useful tools, they may not reflect your specific circumstances if your loan amount or term differs from the standard calculation. Additionally, they don't include all possible costs, such as:

• Government charges
• Break costs
• Fee waivers for package deals
• Features that may provide financial benefits (offset accounts, redraw facilities)

We'll help you look beyond the comparison rate to understand the true cost of different loan options for your specific situation.

A mortgage is a legal agreement that provides security for a home loan. When you take out a mortgage, you're essentially giving the lender a legal interest in your property until the loan is fully repaid. This means the property serves as collateral, protecting the lender if you're unable to meet your repayment obligations.

The mortgage is registered on the title of your property and removed once the loan is fully repaid. This structure allows lenders to offer lower interest rates compared to unsecured loans, as their investment is protected by the property's value.

With a principal and interest (P&I) loan, each repayment covers both the principal (the amount you borrowed) and the interest charged. This structure:

• Gradually reduces your loan balance over time
• Builds equity in your property with every payment
• Results in full ownership of the property at the end of the loan term
• Is mandatory for most owner-occupied loans and available for investment loans

P&I loans are structured so that early repayments contain a higher proportion of interest, with more of each payment going toward the principal as the loan progresses. This is why making additional repayments early in your loan term can significantly reduce your overall interest costs.

A split loan allows you to divide your mortgage into multiple portions with different interest rate structures. For example, you might fix 60% of your loan while keeping 40% variable. This strategy offers:

• A balanced approach that provides some certainty while maintaining flexibility
• Protection against rate rises on the fixed portion
• Access to variable loan features (like offset and redraw) on the variable portion
• Customisation to suit your specific financial situation

The split doesn't have to be even—you can structure it in any proportion that suits your needs. You can also have different fixed terms for different portions of your loan.

This approach is ideal for borrowers who want to hedge their bets on interest rate movements while still maintaining some of the flexible features available with variable loans.

A trading business provides goods and/or services directly to consumers or other businesses, generating income through regular operational activities rather than passive investment. When financing such a business, lenders take a different approach than with investment property lending.

Key characteristics of trading businesses include:

• Active daily operations
• Regular turnover from sales of goods or services
• Reliance on business-specific assets and inventory
• Potential seasonality in cash flow
• Value tied to both tangible assets and goodwill

When financing a trading business or its premises, lenders focus on:

• Sustainable business turnover and trends
• Consistency and diversification of income
• Cash flow adequacy relative to loan repayments
• Management experience and succession planning
• Business assets and their market value
• Industry outlook and competitive positioning

Lending for trading businesses often involves:

• Higher equity contributions than standard commercial property
• Detailed business performance analysis
• Closer scrutiny of financial statements and tax returns
• Assessment of business continuity risks
• Owner guarantees and security over business assets

We specialise in structuring finance for trading businesses, considering both the property fundamentals and the underlying business performance to secure optimal lending terms.

A variable rate loan has an interest rate that fluctuates with market conditions and lender decisions. With a variable loan:

• Your repayments may increase or decrease as interest rates change
• You'll benefit immediately when rates fall
• You'll have greater flexibility with features like offset accounts and unlimited additional repayments
• There are typically no break costs if you decide to sell or refinance

Variable loans are well-suited to borrowers who:

• Want maximum flexibility
• Plan to make additional repayments to pay down their loan faster
• Want access to features like offset accounts
• Believe interest rates may fall or remain stable

We can help you decide between fixed, variable, or a combination of both based on your specific needs and market outlook.

An interest only (IO) loan means that during a specified period (usually up to five years), your repayments only cover the interest charged without reducing the principal balance. This structure offers:

• Lower repayments during the IO period
• Potential tax benefits for investment properties
• Greater cash flow flexibility for investors or those with irregular incomes
• Options for wealth-building strategies when combined with investment plans

It's important to understand that:

• The principal amount doesn't reduce during the IO period
• Repayments will increase when the loan reverts to principal and interest
• Lenders typically have stricter lending criteria for IO loans
• The total interest paid over the life of the loan will be higher

Interest only loans are most commonly used for investment properties where the interest is tax deductible, but may also suit certain owner-occupiers with specific financial strategies.

An offset account is a transaction account linked to your home loan that reduces the interest charged on your mortgage. The balance in your offset account is effectively subtracted from your loan balance when calculating interest. For example:

• Loan balance: $500,000
• Offset account balance: $50,000
• Interest calculated on: $450,000

This arrangement provides several advantages:

• Reduces interest charges while maintaining access to your money
• Offers greater flexibility than making additional repayments
• Provides immediate interest benefits without changing your loan term
• Can be particularly tax-effective for investment properties
• Allows you to use your salary and savings to reduce interest while maintaining liquidity

Offset accounts come in different forms:

• 100% offset (most common) - offsets the full balance against your loan
• Partial offset - offsets a percentage of the balance against your loan

While offset accounts often come with package fees, the interest savings frequently outweigh these costs, especially for larger balances. We can help determine if this feature is cost-effective for your situation.

Equity is the difference between your property's current market value and the amount you still owe on your mortgage. For example, if your home is worth $800,000 and you have $500,000 remaining on your loan, your equity is $300,000.

Your equity increases through:

• Loan repayments reducing your principal
• Property value appreciation over time
• Renovations or improvements that boost your property's value

Equity is a powerful financial resource that can be accessed through:

• Refinancing to release funds for investment, renovation, or other purposes
• Using it as security for additional property purchases
• Establishing a line of credit for future use

Many successful wealth-building strategies rely on leveraging equity responsibly to expand your property portfolio or fund investments. We can help you understand your current equity position and develop strategies to build and utilise it effectively.

Interest coverage is a critical financial ratio that lenders use to assess the risk of commercial lending. It measures how comfortably a business can meet its interest payment obligations from its earnings.

The Interest Coverage Ratio (ICR) is calculated as:

• ICR = Earnings Before Interest and Tax (EBIT) ÷ Interest Expense

For example, if a business generates $200,000 in EBIT and has annual interest payments of $50,000, its ICR would be 4.0 (meaning earnings cover interest obligations four times over).

Most commercial lenders require minimum coverage ratios between 1.5x and 2.5x, depending on:

• Property type and risk profile
• Lease structure and tenant quality
• Overall gearing levels
• Industry volatility
• Historical performance consistency

A higher ICR indicates stronger financial health and typically results in:

• More favourable interest rates
• Higher borrowing capacity
• Less stringent covenant requirements
• Greater flexibility in loan terms

For owner-occupied commercial properties, lenders may consider both business and rental income in their coverage calculations, providing a more comprehensive assessment of repayment capability.

We can help you structure your commercial borrowing to optimise your interest coverage position, potentially improving your access to competitive financing options.

Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender (not you) if you're unable to repay your loan. It's typically required when borrowing more than 80% of a property's value.

Key points about LMI include:

• It's calculated based on your loan amount and LVR (higher LVRs attract higher premiums)
• It can be paid upfront or capitalised (added to your loan amount)
• It's a one-time payment that covers the entire loan term
• It doesn't protect you as the borrower—it protects the lender
• It's not transferable between lenders if you refinance

LMI can add thousands to your costs, but it also enables property purchases with smaller deposits, helping you enter the market sooner. Whether paying LMI makes financial sense depends on your specific circumstances, including:

• Property market trends (whether waiting to save more might cost you in price growth)
• Rental costs while saving a larger deposit
• Your income growth prospects
• Available first home buyer schemes that may help avoid LMI

We can provide detailed LMI cost estimates and help you weigh the pros and cons for your situation.

LVR stands for Loan-to-Value Ratio. It's a crucial metric that measures the amount you borrow against the value of the property, expressed as a percentage.

For example, if you purchase a $500,000 property with a $400,000 loan, your LVR is 80% ($400,000 ÷ $500,000 × 100 = 80%).

A lower LVR generally represents lower risk for lenders and may help you secure:

• More competitive interest rates
• Lower or waived Lenders Mortgage Insurance (LMI)
• Access to a broader range of loan features
• Higher borrowing capacity for future loans

Most lenders prefer an LVR of 80% or less, though loans with higher LVRs are available with appropriate considerations.

Redraw is a loan feature that allows you to withdraw additional repayments you've made above your minimum required payments. This feature offers:

• The ability to pay down your loan faster when you have surplus funds
• The flexibility to access those funds later if needed
• Interest savings while your additional funds remain in the loan
• A simple way to manage cash flow and unexpected expenses

While many loans offer redraw facilities, they can vary significantly in:

• Accessibility (online, phone, branch)
• Processing times (instant to several days)
• Minimum redraw amounts
• Fees (many lenders offer free redraws, but some charge)
• Restrictions on number of redraws per year

Redraw facilities are particularly valuable for owner-occupiers looking to balance loan repayment with maintaining access to emergency funds. For investors seeking tax efficiency, offset accounts often provide additional benefits.

Rental yield measures the income generated from a commercial property relative to its value, expressed as a percentage. This crucial metric helps investors assess the profitability and compare different investment opportunities.

There are two types of rental yield calculations:

Gross Rental Yield:

• Formula: (Annual Rental Income ÷ Property Value) × 100
• Example: A $1,000,000 property generating $80,000 in annual rent has an 8% gross yield

Net Rental Yield:

• Formula: [(Annual Rental Income − Annual Expenses) ÷ Property Value] × 100
• Expenses include council rates, insurance, management fees, maintenance, etc.
• Provides a more accurate picture of actual returns

Commercial properties typically offer higher rental yields (5-10%) compared to residential properties (2-4%), though they often come with longer vacancy periods and higher volatility.

When assessing commercial property investments, we help you analyse both current yield and potential future yield based on market trends and lease structures.

Loan-to-Value Ratio (LVR) requirements for commercial finance are generally more conservative than residential lending. Most commercial lenders offer a maximum LVR of around 70% for standard commercial loans, though some may go up to 80% for prime properties or strong applications.

LVR limits vary based on numerous factors:

Property Type:

• Retail in prime locations: Up to 75-80%
• Standard office space: 65-70%
• Industrial warehousing: 60-70%
• Specialised properties (hospitality, aged care): 50-65%
• Vacant land: 50-60%

Lease Strength:

• National tenants with long leases: Higher LVRs available
• Multiple tenants (diversified income): Can support higher LVRs
• Short leases or vacancies: Lower LVRs required

Location Quality:

• Prime CBD or major commercial hubs: Higher LVRs
• Secondary locations: Moderate LVRs
• Rural or regional areas: More conservative LVRs

Borrower Strength:

• Strong serviceability: Can support higher LVRs
• Experienced commercial investors: May access higher LVRs
• Multiple security properties: Can enhance overall LVR

Our extensive lender network allows us to match your commercial property with the most appropriate funding sources, maximising your borrowing capacity while ensuring the loan structure remains sustainable for your business.

Commercial loan terms vary significantly depending on property type, location, and the lender. Through our network of over 20 commercial lenders, we can access terms ranging from 5 to 30 years.

Typical commercial loan terms include:

• Major Banks: 15-25 year loan terms, often with 3-5 year fixed rate periods
• Non-Bank Lenders: 15-30 year terms, sometimes with more flexible conditions
• Speciality Commercial Lenders: May offer specific terms for certain property types
• Private Lenders: Shorter terms (1-5 years) but with more flexible criteria

Property-specific considerations that impact available terms:

• Retail/Office: Generally longer available terms
• Industrial: Medium to long terms depending on specialisation
• Specialised Properties: (Hotels, medical, childcare) Often have lender-specific programs
• Development Sites: Typically shorter terms with refinance expectations

It's important to note that while a loan might have a 25-year term, commercial lenders typically review the facility every 3-5 years, potentially adjusting rates and terms. We'll help you understand these review provisions and structure your loan to provide both the certainty and flexibility your business needs.

Aircraft finance terms are specifically structured to reflect the unique characteristics of aviation assets, including their long operational lifespans, substantial capital value, and specialised operational contexts:

Term Length Options:

• Commercial fixed-wing aircraft: 5-10 years
• Corporate jets and turboprops: 5-10 years
• Helicopters: 5-7 years
• Light aircraft and training fleet: 5-7 years
• Vintage and specialised aircraft: Customised terms based on asset type
• Major avionics upgrades: 3-5 years
• Engine replacements and overhauls: 3-5 years

Finance Structure Considerations:

• Higher balloon/residual values reflecting aircraft longevity
• Registration and certification requirements integrated into security
• Maintenance reserve provisions in some structures
• Insurance requirements specific to aircraft type and usage
• Operating lease options for commercial operations
• Cross-collateralisation possibilities for fleet operators
• Structured depreciation aligned with aviation industry standards

Term-Influencing Factors:

• Aircraft age and type certification
• Engine time remaining before overhaul
• Avionics modernisation status
• Maintenance history and documentation
• Operational category (private, charter, commercial)
• Anticipated utilisation (hours per year)
• Historical value retention for specific models
• Liquidity in secondary markets

Our aviation finance specialists understand that aircraft represent both substantial capital investments and critical operational assets. We structure finance terms that balance competitive rates with appropriate security provisions, while accommodating the longer economic lifespans typical of well-maintained aviation assets.

Mining equipment finance terms are specifically structured to align with the unique characteristics of both the equipment and mining operations. Terms vary significantly based on equipment type, project duration, and operational context:

Standard Term Ranges:

• Heavy earthmoving equipment: 3-7 years
• Underground mining equipment: 3-5 years
• Processing and crushing equipment: 5-7 years
• Transport and support vehicles: 3-5 years
• Specialised drilling equipment: 3-5 years
• Conveyor and materials handling: 5-7 years

Term Influencing Factors:

• Equipment lifespan in specific mining environments
• Project duration for contracted operations
• Equipment residual value expectations
• Intensity of usage (hours/shifts per day)
• Maintenance programs and manufacturer support
• New versus used equipment consideration
• Potential for redeployment to other projects

Payment Structure Options:

• Standard monthly repayments
• Quarterly payment schedules
• Seasonal payment adjustments for weather-affected operations
• Production-linked payment structures (for certain operations)
• Step-up payments for developing projects
• Initial payment holidays during commissioning
• Balloon payments to reflect residual values

We work closely with both mining operators and contractors to develop finance terms that balance cash flow management with equipment lifecycle considerations, creating sustainable finance solutions that support long-term mining operations.

Mortgages can be broadly classified into two categories:

Owner-Occupied Loans:

• For property you'll live in as your primary residence
• Generally offer more favourable interest rates
• May have different lending criteria and features
• Subject to specific tax treatment

Investment Loans:

• For property purchased to generate rental income or capital growth
• Interest rates may be slightly higher
• Different tax implications (potential deductibility of interest)
• May have specialized features for investors

Within these categories, loans can further vary by interest rate structure, repayment type, and features, which we'll explore in subsequent questions.

We arrange finance for an extensive range of equipment across all major industries. Our flexible funding solutions can adapt to virtually any asset type that generates value for your business:

Construction and Earth Moving:

• Excavators, bulldozers, and graders
• Cranes, lifts, and specialist lifting equipment
• Trucks, utilities, and site vehicles
• Compactors, rollers, and ground preparation equipment
• Concrete mixers, pumps, and formwork systems
• Drilling, boring, and foundation equipment
• Specialised attachments and accessories

Transport and Logistics:

• Prime movers, semi-trailers, and B-doubles
• Rigid trucks and delivery vehicles
• Refrigerated transport and temperature-controlled units
• Forklifts, reach trucks, and material handling equipment
• Fleet vehicles including passenger and commercial
• Loading equipment and dock systems
• Telematics and logistics management systems

Agricultural:

• Tractors, harvesters, and cultivation equipment
• Irrigation systems and water management
• Produce processing and packaging equipment
• Livestock handling and management systems
• Storage facilities and grain management
• Spraying equipment and precision farming technology
• Quad bikes, UTVs, and farm vehicles

Manufacturing:

• Production lines and automated systems
• CNC machinery, lathes, and metalworking equipment
• Robotics and programmed manufacturing systems
• Testing and quality control equipment
• Packaging systems and material handling
• Food processing equipment
• 3D printing and advanced manufacturing technologies

Healthcare:

• Diagnostic equipment and imaging systems
• Surgical equipment and theatre fit-outs
• Dental equipment and specialist tools
• Patient management systems
• Mobility and accessibility equipment
• Rehabilitation and therapy equipment

Whether you need standard equipment with established values or highly specialised machinery, we'll structure finance that aligns with the asset's purpose, lifespan, and contribution to your business success.