Choose the right finance for your business
Getting your financial framework right is one of the most important factors for success. Andrew Sidery, head of introducer sales at Macquarie Leasing, shares three tips for smarter financing.
1) Select the right products
Ensure the financial products you choose are the most tax efficient for your company. The most common form of finance for small and mediumsized businesses is a chattel mortgage, which may allow you to claim GST on purchases in your next GST return, as well as tax depreciation.
2) Work out the best structure
The last thing you want is to be left with an asset that’s worth less than what you still owe on it. For fast-depreciating assets (for example, IT equipment or a delivery van), consider a shorter term for financing with full amortisation, which means there’s no “balloon”, or payout figure, at the end. For a slow-depreciating asset that’s likely to retain its value for a long time, it might make sense to opt for lower monthly payments with an end-of-term balloon.
3) Consider available value-adds
When it comes to cars, arriving at an agreement that everyone is happy with isn’t always easy. Macquarie Leasing’s Vehicle Select vehicle-buying service can negotiate on your behalf to find a deal that suits your business needs while saving you time. The team can also help you select the right car for your business, arrange trade-ins and organise test drives in most metropolitan areas.