In recent weeks there’s been a big uptick in business lending enquiry. Amongst that enquiry has been calls about cash flow lending, business tax debt and raising capital to fund a restructure.
It’s not surprising – tax debt owed to the ATO is at an all-time high.
This kind of business lending is important.
So is lending for investment, equipment purchases and asset finance – the kind of lending that propels growth.
But this is different.
The lending that goes along with saving someone’s business, helping them through a restructure, buying out a partner, taking care of tax debt makes a big difference to business outcomes.
And people.
The circumstances that lead up to these scenarios are stressful.
Business owners are usually very thankful there’s a credit solution when they didn’t think there was one.
How can business owners avoid these circumstances?
Sometimes these situations could have been avoided. Sometimes it’s a matter of experience and careful planning.
Some thoughts…
Knowing your numbers is important.
Understanding your incomings and outgoings rather than just your bank balance makes a big difference to informed business decisions and sustainability.
Even if you and your team are sales guns, if you’ve got a spending problem the impacts of that will be realised sooner or later.
Just because you can finance luxury cars for the leadership team before you’re profitable doesn’t mean it’s a good idea.
The tax man will come eventually – have a plan for that and take action or they’ll make one for you (and take action).
Good mentors are gold.
If these thoughts are too late…call.
Jeff
P.S. Here’s a list of some of the solutions we’re doing for clients at the moment.
- $300k no doc loan for working capital while a business restructured
- $650k no doc loan to refinance a private loan another broker had organised (our rate was a third of the original loan)
- $1M low doc loan to fund environment remediation
- $650k no doc loan with no repayments for 12 months to cash flow a startup business
- $400k low doc loan for working capital to a mining business
Get in touch to talk through your situation.
Related Links
How to keep doing business until your customer pays
How to get finance approved for a residential property development