Why good business advice makes good sense
There are more and more options on the market for business finance, insurance and superannuation, but making the right decision for your business can be challenging.
Here we look at some options all business owners can consider...
Asset Finance
Why use asset finance and leasing
options?
Asset Finance and Leasing options can provide your
business with great cash flow and tax advantage opportunities.
If the finance is structured correctly, it can result in
big savings for your business. Additionally, most Lease
and Asset Purchase transactions are written on a fixed rate
and fixed term basis, meaning you can plan ahead more accurately,
as you know your borrowing costs in advance.
However, Asset Finance for business use is not the same as more commonly understood finance products such as mortgages and credit cards. Because of the variety of products and different advantages to your business, it is worth spending time with your Count Adviser to find the best solution for you.
What can you finance?
Anything from computers to an airplane can be financed for
the right client, as long as it is used at least 51% of
the time for business purposes.
The great thing about Asset Finance is that you are usually able to use the purchased asset as security for the finance1, this means you don’t have to offer personal assets such as the family home or key business assets such as your commercial property as security.
What should you look for when
evaluating Asset Finance?
Various factors must be considered when assessing your options
for Asset Finance or Leases.
Factors such as methods of calculating early termination payment, tax deductibility, matching the finance to the useful life of the asset in your business and the value of the service offered by the lender must all be taken into account.
The above example shows that the overall structure may be more important than the interest rate. It pays to find the right finance structure for your business!
Ask your Count Adviser
Your adviser is in the unique position to understand your
business’ financial situation and can recommend the
best strategies to achieve the greatest cash flow and taxation
benefits. It is not always the lowest interest rate that
is the best option. Count Advisers have the ability to compare
finance products from all the major lenders and they have
national buying power to, in turn, pass the saving on to
you.
“It is not always the lowest interest rate that is the best option.”
Additionally, when your Count Adviser organises your finance, they will do all application and ongoing paperwork for you and can also arrange pre-approved finance that allows you to take advantage of a good deal on the spot – saving you both time and money.
Insuring your business
If you are a small business owner or partner, any possible sickness or disability that prevents you from working will have an adverse effect on your business. It is therefore essential to ensure that your business has the adequate insurance coverage, such as those listed below:
Business Expense insurance helps protect the integrity of your business should anything happen to you, covering expenses such as advertising, accountancy fees, telecommunication costs and many other business expenses.
Key person insurance provides your business with funding in the event a ‘key person’ from the business leaves, causing financial difficulty.
Buy/sell agreements provides a legal contract that will ensure that on the death or disability of an owner, the business is transferred to an agreed party.
Insurance also has the additional benefit of demonstrating to creditors and stakeholders that your business is stable, reputable and trustworthy.
Ask your Count Adviser for the option that is best suited to your business.
Superannuation
If you are a Sole Trader, Partner in a partnership, or a Trustee of a trust, you are considered ‘Self-Employed’ and do not receive superannuation guarantee payments. Many small business owners re-invest their money into their business to fund their retirement. However, in doing this, their retirement is totally dependant on the performance of the business.
Investing in superannuation allows small business owners more diversity in investment and keeps retirement funds separate from the business, assisting in creating greater security for your retirement monies. Self-employed people are also allowed to claim a tax deduction for concessional contributions, therefore providing a very tax effective way of investing. Consider the following case study:
Case Study
John is 45 years old and is a sole trader earning $130,000
pa. He makes personal concessional contributions to his
superannuation fund of $50,000 each financial year (this
is the maximum allowed for people under 50 years old):
Talk to your Count Adviser today to ensure that you are
in the best position to save tax and prepare for your retirement!
 Next: 3 Pools of Wealth: Building for now, and then |
As at
8 February, 2008 |
