Commercial Investment

Securing commercial finance requires the expertise of a specialist team. At PFG our consultants are able to package your loan application and present it to the most appropriate lender. Commercial lenders will evaluate your application based on a number of criteria and we are able to assist you in guiding you through this complicated process.

Whether you are looking at acquiring a new business or are already established in your existing business, we can help you with your financing needs. We can arrange finance for different securities ranging from commercial, retail, industrial, vacant or retail land, child care centres, medical centres and so on.

If you are thinking of acquiring a new business or are currently established in your existing business, we can assist you with your financing needs. You may need short-term financing such as a bank overdraft or longer-term financing to help you expand your business. We can help you understand how to best approach this to successfully achieve the best outcome.

Our business loans offer you the flexibility of variable or fixed interest rates with structured repayments that feature either interest only or principal plus interest.

Bank overdraft

Being in business, particularly small business can be a regular challenge in terms of managing your day to day cash flow. We can arrange for an overdraft account that allows you to have access to a pre-determined limit and you only have to pay interest on the amount that you have used.

Trying to figure out which finance product is right for you can be confusing. In fact, we recommend discussing your situation with your tax professional. However, to simplify your decision process we’ve outlined the choices available to you here.

Lease products fall into two categories as either a finance lease or operating lease. They differ in the way they treat ownership, disposal and residual risk on the vehicle. Hire purchase options are available and function in a similar fashion to a loan to purchase an asset.

In order to decide on the most appropriate type of finance you first need to consider the following:-

• Do you wish to own the asset at the end of the lease period?
• Do you use the asset for business purposes more than 50% of the time?
• Are you looking to finance the vehicle only, or do you also want a range of fleet management services?
• How long do you intend to keep the vehicle and how many kilometres will you travel?
• Do you want or need to show the asset on the company balance sheet?

Finance lease

A finance lease is a form of rental agreement under which you lease an asset for an agreed period and rental. A residual value is set upfront to reflect the asset’s value at the end of the term. This is accounted for on the balance sheet.

Under the conditions of most finance leases you have no option or right to purchase the asset. However it is common practice that most financiers will consider an offer from you to purchase the asset at the end of the term for the residual value. Alternately, you may trade it in on a replacement, return it to the financier paying the difference between the residual and market value (residual risk) or even extend the lease for a further term.

Operating/Maintained lease

A fully maintained operating lease offers an organisation the benefits of a hassle free method of vehicle usage. It is finance not shown on the balance sheet and in one monthly payment takes care of all costs associated with the vehicle i.e., all costs in relation to maintenance, insurance, finance are included. Once you decide on the motor vehicle required you simply decide on the length of the lease required and calculate how many kilometres you will travel in each year. Based on this the financier will calculate a monthly repayment. At the end of the lease term you hand the vehicle back to the lender with no residuals or balloon payments required.

Commercial hire purchase

Commercial hire purchase (CHP) is an agreement between the purchaser and the financier whereby the financier owns the vehicle or equipment during the hiring period. It differs from a finance lease in that the goods automatically become yours once all terms of the agreement have been completed – usually when the final instalment is paid. As such it is finance taken out by a business when they wish to purchase the goods.

A CHP can be arranged with or without a final balloon payment at the end of the term depending on what your budgetary requirements are. The repayments are fixed for the term of the CHP. An upfront deposit or trade-in, which will reduce your rental commitments, is optional. It is accounted for on the balance sheet.

Chattel mortgage

Similar arrangement to a hire purchase but with specific GST benefits, which in certain circumstances will allow the entire GST proportion, be claimed in the first BAS period after purchase. Loan structure can be tailored in a similar fashion to a CHP or finance lease

Debtor finance

Debtor Finance is a financing product that allows you to maximise your cash flow, which is a key factor in the success of any business. Unlike traditional lending products, this form of lending enables you to access funds using the strength of your sales as leverage.

By borrowing against the outstanding value of your trade debtors you won’t miss out on business opportunities that you otherwise may have which can help you achieve your business goals and targets.

You might use this type of product if your business sells goods or services on credit terms and consequently has restricted liquidity, or if your business is expanding or if your business activity is affected by seasonal trends