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Invest in Your Business Before June 30 and Minimise your Taxable Income by up to $150,000

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The end of the financial year is fast approaching, and right now, an incredible opportunity exists to minimise your taxable income by investing in your business.

For the first time, the Federal government is offering Australian businesses the chance to immediately write-off multiple asset purchases to the value of $150,000.

“This is a great prospect for anyone thinking of making business purchases in the next six months,” says AGM Director, George Morfoulis. “If possible, pushing that purchasing forward and capturing it in this financial year could be quite beneficial. Because come July, this incentive will be gone, and the asset threshold will revert to $1,000.”

This unique opportunity is part of a stimulus package worth nearly $18 billion. The original asset write-off scheme increased from $1,000 to $20,000 then $30,000 before being boosted five-fold to a staggering $150,000.

“Businesses with profits of approximately $150,000 can essentially make purchases to the value of $150,000 and pay no tax,” explains George. “Business investment opportunities like this do not come around often.”

Record-low interest rates and an array of Low Document (low doc) products make this prospect even more appealing.

To qualify for low doc finance with terms of up to 5 years:

  • Your ABN has to have been active for a minimum of one year;
  • You need a clear credit history; and
  • At least one company director must own property.
  • If a property is not owned, a minimum 20% deposit or equivalent trade-in is required.
  • No financial statements or tax returns are required; early exit is available.

At AGM Finance, we aim to provide our clients with low doc finance results in only 24 hours, ensuring you don’t miss an opportunity to purchase the right equipment for your business.

Our buying capacity as Australia’s leading truck finance broker gives us access to lower rates through more lenders than a personal application can access.

Our network of more than 30 low doc lenders ensures we get you the best rate every time.

Assets covered by this stimulus package include:

  • Trucks
  • Trailers
  • Motor vehicles
  • Agricultural equipment
  • Industrial equipment
  • Earthmoving equipment
  • Material Handling Goods
  • Construction Equipment
  • IT Equipment
  • Medical Equipment

Deductions can be claimed on new or second-hand assets, as long as they have been used or are installed and ready to use, before June 30.

These assets can be purchased in Australia or overseas, and importantly, the cost of the asset includes the purchase amount and the cost of transporting or installing it for use.

Should the item be used for both personal and business purposes, the percentage of business use is applicable to claim for depreciation.

For example, if purchasing a motor vehicle that is used 30% of the time for private use, you would be eligible to claim 70% of the expense.

The GST cost of the item is covered by the stimulus package, assuming your own business is registered for GST.

To received tailored finance solutions for your unique business circumstances, contact our team of finance specialists today.

They can provide you with an obligation-free quote and ensure you capitalize on this very limited opportunity before it expires on June 30. Call 1300 664 687

Managing Your Finances During COVID-19

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During this uncertain period in time, many Australians are facing financial instability and immense pressure to keep their business afloat.

To provide relief during this global crisis, lenders are working in conjunction with the government to support those suffering financial hardship caused by COVID-19.

At AGM Finance, the best truck finance in Australia, we are working to provide you with convenient access to that support.

What support is available to you?

If your business and livelihood have been impacted by COVID-19, lenders are allowing for temporary deferment of your loan repayments.

This deferment option is different from the deferment option available during a “normal” hardship period.

Usually, the amount of money owning in arrears would need to be paid back in entirety after the deferment period.

For many clients, this would mean their payments could double over the three to six-month period directly after their hardship.

Uniquely, COVID-19 related deferments would not be due for repayment until the end of the loan.

This means your loan will take three to six months longer to pay off (including with accrued interest), relieving the immediate stress on your business.

How long can I defer my loan?

For the major banks, a loan can be deferred for up to six months. However, smaller lenders are unable to defer payments for a blanket period and are instead using a month- by-month application process.

What are the implications?

For the duration of the deferral period, interest and charges will continue to accrue at the agreed rate and time on any outstanding balances and add to the total loan balance.

This means that the total amount of interest payable will be more than it would have been under the original contract term.

AGM Finance is here to help.

As always, our goal is to assist you through good times and challenging times.

If you need support, contact our team and ask about making a deferment application.

Once your request is received, we will phone you back within two hours to provide you with personalised advice.

Together, we can go through your loan commitment schedule and prioritise which debts can be deferred, and which can remain.

We can then approach lenders on your behalf to arrange your application.

For those smaller lenders who need to handle deferments month by month, we will work with them month by month, allowing you to focus on your business and the health of you and your families.

Can I still apply for a loan during this period?

Absolutely. Not all Australian businesses are suffering financially because of COVID-19.

If you are in a position to grow your business or expand your equipment range, lenders are still processing applications, and we are always here to help you achieve your business goals.

For advice and support, contact our team today on 1300 664 687.

Thank you and stay safe.

Why Use A Finance Broker?

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When it comes time to expand your business, you have two choices regarding how you acquire finance.

Do you approach a lender on your own, or utilise a finance broker? Your decision to either use or not use a financial broker can have huge implications.

Consider for a moment, the benefits of shopping for anything in bulk.

When you purchase a higher quantity of something, you gain access to discounted or wholesale prices.

The same rule applies to the world of finance.

As an award-winning finance brokerage firm, recognised as the best in Australia, our purchasing power gives us access to finance at significantly lower rates than lenders provide individuals.

Submitting Your Finance Application

It is also worth considering the time involved in making a finance application as an individual versus using a finance broker, as well as the probability of your success.

While the actual process of completing and submitting your finance application can be time- consuming, it’s the wait-times of around two to three weeks which can hamper your progress.

At AGM finance, we understand that long wait-times can impact your business.

That’s why we provide personalised service with a settlement process within 48 hours on some applications and a success rate over 98%.

Working with Finance Broker

By working with a finance broker, you also have access to our expertise.

Time and time again, we encounter new clients who have all their finances with one lender.

We highly advise our commercial clients never to do this. Having everything with one lender is exactly like having all your eggs in one basket.

It simply provides lenders with too much power over your business and life.

Should you experience a difficult period at work.

Lenders can decide to take additional security steps because their exposure is too high, making you vulnerable.

That’s why we advise our clients to share the risk across multiple lenders.

It’s all about providing the best protection.

This strategy of utilising multiple lenders can also benefit businesses who want to grow their business quickly.

For example, should a local company decide to add $1,000,000 of equipment to their business, a financial broker could help.

Most lenders would struggle to help because most exposure limits are set between $150,000 and $500,000 within 12 months; should you go over the exposure limit lending becomes difficult.

A finance broker can help spread out a client’s exposure over a large number of lenders, allowing a business to achieve that rapid growth.

Final Words

What if you’re happy with your existing lender and don’t want to change or use multiple lenders?

We can still help. If, for example, you exclusively work with one of the major four banks, we can still get you a discounted rate.

How? Because when we approach your lender, they realise they are now up against more than 40 different lenders.

The bank has an incentive to be more competitive, and again, the volume of our business also comes into play.

Our condensed value as a brokerage is higher than that of an individual business.

Our worth can save you money, and our brokers can open up a world of possibility.

Contact our team for more information on 1300 664 687 today.

Low Doc Finance

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Low document (Low Doc) finance, is an excellent option for the self-employed.

Because the reported earnings of a business aren’t always the best reflection of success..

Low doc finance provides an opportunity for businesses to secure finance based on self-declared and no-declared income assessments and assets, instead of reported income.

Across Australia, there are more than 30 different lenders who provide low doc loans. With such a vast product range, the options can become complicated, as each lender has different criteria and preferences, and rates can vary from 4% to 16%.

Fundamentally, there are three or four standard requirements all lenders want from a potential low doc client:

  • A GST registered ABN that has been active for two years or more;
  • Asset backing in form of property.
  • Or, in the absence of property, a 20% deposit is required;
  • “A” credit rating

What Can AGM Finance Do For Your Business?

At AGM Finance, we recognise that low doc finance really does help our clients to grow their businesses, so we work hard to save you both time and money.

As the leading truck finance broker in Australia, our buying capacity gives us access to lower rates through more lenders than a personal application can access.

Understanding that time is money, and opportunities can often require speedy responses, we endeavour to provide our clients with low doc finance results in only 24 hours.

Most personal applicants would need to wait up to two weeks if applying privately through a major lender.

Queensland tip truck driver, Lionel Murphy, was one such client who needed to secure low doc finance quickly and easily, to grow his business.

We had already assisted Lionel to purchase his first truck, a 2010 Mercedes Benz Actros tipper truck, so we knew his personal and business history.

When he received the opportunity to expand his business 18-months ago, Lionel came back to AGM for assistance.

At this stage, his business had been in operation for three-and-a-half years.

He was registered as a GST trader, and he had consistently paid his loan repayments on time, while also managing his mortgage.

His A-Class credit rating, proven business profitability, and assets made him an ideal candidate to secure a low doc loan. We were confident we could help.

Acting quickly, as Lionel already had his eye on a 2012 Mercedes Benz Actros tipper, we worked to secure Lionel a $150,000 loan at the low rate of only 4.85%.

With the second truck in his fleet, Lionel could employ a driver and double his income.

Expand Your Existing Business

If you, like Lionel, have the opportunity to expand your existing business, low doc finance could be the opportunity you need. Contact our team for more information on 1300 664 687 today.

New Venture Finance: A Case Study

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Navigating the world of finance can be difficult as well as time-consuming.

You need a level of assumed knowledge just to complete the paperwork, and it’s highly beneficial to have a strategic understanding of the differences between each bank.

Of the 40-odd Australian lenders available for your loan application, only a handful will consider a new venture finance application.

To complicate things further, of those few lenders, each will interpret your risk factors in slightly different ways, and of course, each lender has a preference for the sort of investments they like to make.

Without an understanding of how each bank considers applications and the foresight to present your personal situation in a way that your chosen lender will favour, your application can be jeopardised.

At AGM Finance, we do the hard work for you.

We take the time to develop a personalised strategy to give you the best chance of success for your loan and your new business. Here’s an example of how we helped a client achieve their new business goals.

Last year, a young Brisbane-based truck driver, John Webster, came to us when he was offered the opportunity to become an owner/driver with Toll.

John had previously spent four years as a PAYE driver for Toll.

On average, John had been earning about $1,500 a week during his time as a PAYE driver, and he had almost $30,000 in personal savings, but no other significant assets like a home.

He was also in his early twenties, which means some banks could consider him to be a higher-risk.

When John came to see our team, he had located a prime mover he was eager to buy for $120,000.

It was a 2015 Volvo FH540 Globetrotter with low kilometres, available through a private seller.

Because the truck was relatively new, and because John had a reasonable amount of savings, we determined we had a good chance at securing a loan for John.

Our goal, however, was not just to get John a loan, but to get his truck using the minimum deposit, at the best possible rate.

Together, we began to prepare a cash flow projection for John’s new venture, estimating his business expenses like insurance, fuel and maintenance, as well as his loan repayments and earnings.

This projection would help the bank to assess his case and determine an outcome.

While we prepared John’s financial documents, we advised him to get a letter from Toll, formalising their offer, and also provided advice on how the letter should be drafted to give him the best opportunity with the bank.

Understanding that only a select few banks would consider John’s application, we chose one of the major four banks who had previously demonstrated an appetite for new venture finance.

And it paid off.

John was granted a $100,000 loan, using $20,000 of his savings as a deposit. The finance was secured at a rate of less than 5%, and crucially, John had $10,000 in his personal savings leftover to use as working capital.

Our goal of getting John his Volvo Globetrotter at the lowest rate, using the minimum deposit, had been achieved.

These days, John turns over $25,000 a month and has a gross profit of $180,000 annually.

His new venture finance kickstarted a new business and a new life that wouldn’t have previously been possible.

If you have found yourself in a similar position to John, and need assistance to get your loan application off the ground and to secure the best rate, give us a call on 1300 664 687.

We can help you make the most of your opportunity and achieve business success.

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