Commercial & Asset Finance

Individuals, companies, trusts or self-managed superannuation funds use commercial loan to towards commercial asset purchase. For these types of loans, terms terms and conditions and pricing can be negotiated with the banks. Banks typically determine the maximum loan amount they can lend. 

Commercial loan products are suitable for purchasing a commercial properties as investment and receive rental gains or purchase to lease to your own business.​ Commercial loans can also be taken out to finance day to day business operation also known as working capital.

 

The purpose of your loan affects the amount you can borrow, how your loan is assessed by a lender, and the risk level. Commercial loans, depending on the property type and lender, can be very similar to some residential rates. Gone are the days where commercial loans were always 2% more than your home loan!

 

Your borrowing capacity will depend on the reason why you need the loan, lender’s assessment criteria and risk appetite. Depending on lender and their lending criteria, sometime rate and charges of commercial loan can be very similar to a residential product. Market has become very competitive these days and banks are shaping their commercial products to keep pace with changing market conditions - Commercial loan products do not have to be always 2% or more than the rate of your mortgage product anymore. These products can now be accessed at a cheaper rate.

Lenders’ Hut can assist you to determine your level of risk and can offer commercial products that will be best suited for your business needs and risk exposure. It is often waste of time for a business owner to curve out time form her busy schedule and try to  understand complex commercial lending policies and procedure so that a better loan can be selected for her business. Lenders’ Hut will help you to navigate the rules and regulations on your behalf and negotiate the best product from 100s of products that are available in the market. In the mean time, you can focus on running your business.

SMSF is a unique trust that Australians can setup to manage their own superannuation. Like an regular super fund, your employer contributions still get paid into the SMSF fund you are allowed to make additional contribution if you want.

However, unlike a normal super fund, the trustee (either you or your company) has direct control over the assets that your superannuation is invested in. Many people also use their SMSF to help plan for their retirement and assist with tax planning. One of the popular investment strategies for an SMSF is to invest in residential property market. The loan scenarios are fairly complete and we strongy advise our clients to seek professional financial advice to ensure if the SMSF is the correct fit your retirement planning.

 

SMSF loans towards residential investments are generally between 70% - 80% of the purchase price. You will also need to have a minimum 10% of the  value of the loan into  your cash savings to cover any unplanned expenses. You do not pay the repayment form your personal income; your employee contribution paid to your super account should cover repayment and other cost for your property .

 

Australians can take loans against They are loans Australians can use to invest their superannuation in a residential or commercial property. They are an incredibly complex loan scenario that needs expert advice and professionals working for you to ensure the correct structure and strategy is in place. You’ll need to understand the fees and charges that are involved, as well as how to be legally compliant in your loan structure.

Loans are generally up to 70%, sometimes 80% of the purchase price, never any more than this. You will also need to have a minimum of 10% of the debt value in your SMSF as residual cash to cover any expenses that may crop up. As an individual, you do not pay the loan from your personal income. Payments come out of your Superannuation to pay for repayments and costs on the property.  Following general rules that you should be aware of :

  • No major renovations are allowed in SMSF property as funding constructions work from SMSF is not liked by the regulators

  • You are also not allowed to ever live in this property even in retirement

There are numerous entities involved in the SMSF Loan as set out in this diagram

SMSF Loans
Vehicle Finance

Everything is simple at Lenders’ Hut!

 

You can purchase a car without lifting a finger and sacrifice your precious weekends hopping from one dealership to another. We will do the all the leg work for you to not only secure a best car finance deal that the market can offer but also find the car for you and deliver at  your door step with full comprehensive insurance and will full tank of fuel!

We have joined forces with Australia’s prominent car sourcing service. You have the exclusive privilege as our client to reap the benefit of our negotiation power. All you have to do is send us an email with the exact car you are looking for and we will find a car for you with best price in the market. When you email us, please ensure to include make, model, colour and accessories that you require.

You can finance your car in various ways – be it a Corporate Hire Purchase or personal car loan, there are a number of suitable repayment options that we can discuss with you which will suit based on your budget and financial position.

The final step is insurance. We are in partnered with Allianz and will be happy to obtain an insurance quotation for you so that you can start driving your new car at no time.

 

Just send us an email and one of our friendly team members will get in touch with you to discuss your needs.

Please note that your self-managed super fund actually can’t borrow money, but a Bare or Custodian Trust can. The Bare Trust is the missing link between you and the SMSF. When you have paid off the loan the trustee company will transfer the asset into the SMSF.

 
 
 

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