10 Questions you need to ask BEFORE buying a new car!

10 Questions you need to ask BEFORE buying a new car!   1. Am I going to need finance? 2. If I do need finance, does the age of the car make a difference to my rate? 3. Will I be going through a dealer or will it be a private sale and how does that impact my finance? 4. Is the vehicle for personal or business use? If it is for business use, do I need to speak to my accountant about the entity I purchase the car in? 5. Who am I going get my Insurance though? Do I need to shop around? 6. When is the registration due? Do I need to put money aside for this if it is due in the next few months? 7. What are the Loan fees and other costs? 8. What sort of Loan Term do I need… 3 years, 5 year, 7 years…? 9. What are my Repayments and what is the interest rate? 10. Do I want added extras like paint protection, window tinting, rust protection, fabric protection or bigger tyres, a tow ball or car seat covers and floor mats etc and what cost does this add to my repayment? Hope this helps with your next purchase. You can call Pearl Finance and Investments for a Finance Quote on 07 3812 3430. To keep up with the latest Business and Finance Hints and Tips like us on LinkedIn and Facebook.

What is Insurance Premium Funding?

Received your Annual Insurance Renewal? Were you surprised at the amount? If the answer is Yes, you might want to know more about Insurance Premium Funding… Insurance Premium Funding allows you to borrow funds to pay your Annual Insurance Premiums rather than having to pay the full amount up front. Insurance Premium Funding enables a business to pay their Insurance Premiums in easy to manage monthly instalments up to a term of 12 months, rather than paying the full amount in one hit, thus easing cash flow. Any Business, including Real Estates, Construction Companies, Trucking and Transport Companies, Financial Planners or Companies who need cars, equipment, public liability insurance (to name a few) who have premiums over $10,000 can make use of Insurance Premium Funding. To help you jump over this one off cost, call Pearl Finance on 07 3812 3430. If you found this finance tip helpful, please like our page and share our posts.

Dream of owning your own business?

Do you dream of buying your own business? Do you want to be your own boss? There are many ways to go about it, and we would love to talk to you about your options. Firstly, here are a few questions to ask yourself before financing a new business: 1. What structure am I going to run the business from…? Sole Trader, Company, Trust or Individual? You may need to speak to an Accountant, Financial Adviser or Solicitor about the tax implications, risks, business structure and insurances. 2. If I am buying an established business: · How long has the business been running? · What is the current cash flow, and are the current and historical figures available? · Will I loose certain (and large) customers by taking over and how will that affect the business and its cash flow? · Will I need to take over Staff or Contracts? How secure are the Contracts? · What is the current business owner paying him/herself? How many hours are they working in the business every week? · How has the business been valued? Do I need to get an independent valuation? · How much working capital do I need? 3. What will it take to grow the business? 4. Can I put together a business plan based on current business and my skills? 5. What is my exit strategy? Call PearlFinance today for an obligation free appointment to discuss your new business purchase options on 07 3812 3430 or or go to our contact page to make and enquiry. If you found this finance tip helpful, please like our page and share our posts.

Are you a Start Up Cafe, Restaurant or Hotel?

Is there equipment you want to TRY BEFORE YOU BUY but you want to conserve cash flow? Well, we may have the answer your looking for! Rent-Try-Buy up to $25,000 on that new Coffee Machine, Display, Refrigeration or Cooking Equipment and no financials needed! If you are a new business who needs new equipment and you have no financials to show the bank but you want that new piece of equipment that you know will make a difference to your business, this could be the answer for you. For startup cafes, to large restaurants and hotels, realise your business dreams! This is a solution like no other and you can keep your working capital! Rent-Try-Buy is a 12 month agreement with plenty of flexible options: 1. You can upgrade your equipment at any time! 2. You can purchase the equipment at any time and receive 75% net rental rebate! 3. After your 12-month agreement ends, choose your option: a. Continue renting b. Return equipment with no further obligation c. Work towards ownership with Easy Own and enjoy a 30% discount on your weekly payments over 36 months 30,000 other businesses have taken advantage of this hospitality equipment funding. Its your turn to… Rent-Try-Buy that coffee machine that will make a difference! Rent-Try-Buy that new cooktop to give you more space! Rent-Try-Buy that display that will showcase your best food! Rent-Try-Buy the refrigeration to organise your kitchen! Rent-Try-Buy today! Benefits of long term Equipment Leasing: · No bond and no payments for six months! · Reduce cash flow pressure as you establish your business · Fully unsecured funding – you don’t need equity to qualify · Immediately depreciate sub $20k assets · Flexibility to payout at any time and receive a 15% discount Benefits of Franchise Equipment Rental: · Preserve your working capital – don’t sink it into depreciating assets · Rental payments are 100% tax deductible · The ability to try before you buy · Simple and quick to organise · Upgrade equipment at any time, as your business or service offering evolves · Renting is an ‘off balance sheet’ form of funding, which means it doesn’t affect your capacity to borrow for future expansion · If you are an accredited franchise, access further benefits such as preferential rates and a reduced rental security bond Call Pearl Finance & Investments for your finance options 07 3812 3430 or or go to our contact page to make and enquiry. If you found this finance tip helpful, please like our page and share our posts.

Loan Verse Lease?

Loan -v- Lease – What’s your preference?  And what’s the difference?

Tell us what your preference is when you are looking at a New Vehicle or Equipment for your Business…

A Loan or a Lease?

And, what are the differences?…

1) Ownership of the Vehicle:

With a Loan you own the vehicle with an encumbrance from the financier and this will appear on your Balance Sheet as an Asset and the Loan as a Liability.

With a Lease, the financier owns the vehicle and this will not appear on your Balance Sheet.

2) The amount of deposit required:

With a Loan, the amount of deposit required is dependent upon the applicant’s financial position. If you are a property owner, usually no deposit is required. If you rent and have no real estate assets, then somewhere between 10% – 30% of the cost price of the vehicle or equipment may be required. Loans can also be structured to include a Balloon payment at the end of the term of the Loan, to reduce the repayments.

With a Lease, there is usually no deposit required, however, there will be a Residual Payment due at the end of the Lease and this is governed by ATO guidelines.

3) Repayments claimable (if the vehicle or equipment is purchased for business purposes):

With a Loan, all of the interest paid and the vehicle depreciation, is claimable in your tax (the principal part of the repayments is not claimable). On a side note, no GST is in the repayments but you may be able to claim the total GST portion of the vehicle or equipment in your next BAS.

With a Lease, the full net repayment less the GST amount of the repayment, is claimable (and the GST portion of each payment is claimed in your BAS).

You can speak with us (in conjunction with your accountant) to discuss what suits your financial needs and cash flow.

4) Other claimable items (if the vehicle or equipment is bought for business purposes):

With both a Loan and a Lease, you can claim all running, maintenance, registration, insurance costs etc (less any portion used for private usage if applicable).

With certain Leases, i.e. Operating Leases or Novated Leases, cost can be included in the finance or the employee/employer agreement (see below for the definitions of various types of Leases) and for further information on what is claimable, please speak with your accountant.

5)Borrowing capacity:

Both Loan and Lease applications are assessed on your ability to make the payments from your business profitability and cash flow.

6) Cost of Early Sale:

If you need to sell the vehicle for any reason prior to the end of the Loan or Lease term, the payout is usually less with a Loan, compared with an Equipment Lease and this is because of the way the payout is calculated.

7) At the end of the Term:

With a Loan, at the end of the Loan Term, you will own the vehicle or equipment outright (assuming there is no Balloon).

If there is a Balloon, you can either:

– Refinance the Balloon payment over an extended term.

– Payout the Balloon amount.

With a Lease, you will have three options at the end of the term:

1. Hand the vehicle or equipment back. In this instance, the lender sells the vehicle or equipment and any profit goes to the financier/bank, and any loss you are responsible for.

2. Refinance the Residual payment over an extended term.

3.Payout the Residual amount on approval from the Lender.

There are 3 different types of Leases:

1) Commercial Lease: For Business or Self-Employed Customers. Generally, Commercial Leases are for business’s who only want the vehicle or equipment up to 60 months or, they are looking to turn around or upgrade new vehicles or equipment on a regular basis.

2) Operating Lease: Incorporates ongoing costs on top of the repayments, including registration, maintenance, insurance, servicing (i.e. fleet cars or, Operating Leases are also suitable for companies who only want a vehicle for a short time or up to its 20,000kms. At the end of the term, they hand back the vehicle or equipment.

3) Novated Lease: An agreement between the Employee and Employer (and the vehicle is usually a part of the Employee’s Salary Package). It can be an economical option for a vehicle for the employee due to the tax benefits (as the repayments are paid from pre-tax dollars) and usually, the agreement includes fuel, insurance, registration and maintenance.

To find out more or to discuss what is most suitable for you, phone Pearl Finance on 07 3812 3430 or, go to our contact page to make an enquiry.

Why Choose Us?

1 Full Range of Financial Products available for both business and personal

2 Wide range of Lenders to tailor a competitive package to suit your financial needs

3 Totally Confidential

4 Can offer additional financial services through our business partners such as; Insurances, Superannuation, Accounting, Book Keeping, Financial Planning & Legal Services

5 Over 30 years experience in banking and finance industry

6 Long term partnerships – not only do we keep in contact with you while the loan is in progress, but it is on going

7 Prompt, Professional service with our availability to be contacted at anytime

8 Work with your accountant on your own finance requirements or information