Mortgage & Finance for Self Employed and Business Owners

Loans can differ in terms of amount, repayment duration, interest rates, types of interest (fixed or variable), associated fees, and collateral requirements. It is advisable to thoroughly review the product disclosure information prior to application, irrespective of the selected product.

An overdraft facility is linked to your business account and comes with an authorised overdraft limit. Typically, a credit assessment of your business's financial health is required as collateral. This facility offers working capital for your business until income is received. It is not intended for capital expenditure or long-term financing requirements.

A line of credit allows access to funds by enabling you to withdraw from an account balance up to a predetermined limit. As long as the balance remains within this limit, you can access funds at any time..

A fully drawn advance provides immediate access to funds for long-term investments. This may be necessary for starting a new business or acquiring equipment to enhance your business operations. This type of advance allows you to lock in an interest rate for a specified period, ensuring predictability and stability in your repayment schedule.

In a commercial hire-purchase agreement, you acquire an asset by making an initial deposit, followed by lease payments that include interest charges. You can lower your installment amounts by opting for a larger final payment, commonly known as a 'balloon' payment.

Factoring, often referred to as debtor's finance or accounts receivable finance, involves a factor company purchasing your outstanding invoices at a reduced rate. The factor company subsequently takes on the responsibility of collecting the debts. This method provides a rapid means of obtaining cash; however, it may incur higher costs compared to conventional financing options.

A chattel mortgage operates similarly to a hire-purchase agreement, but you gain ownership of the asset from the outset. You are required to make regular payments over time.

Invoice finance operates in a manner similar to factoring, with the distinction that the invoices or accounts remain under the ownership of your business.

In a rent-to-buy arrangement, you make an initial deposit and subsequently lease the item until it is fully paid off. It is worth considering alternatives like lay-by, which may offer more economical options.