Broc Finance

  Equipment finance is a convenient financing solution for businesses that need to buy new equipment. These solutions are also available for upgrading or replacing their existing assets. Firms can borrow the entire amount for procuring new equipment or upgrading an old one. Lenders provide different equipment financing solutions to help businesses optimise their operations. Let's break down the types of equipment finance so you can choose the right one for your business!   Chattel Mortgage A chattel mortgage is an equipment financing option that allows borrowers to secure money for outright ownership of the assets. The business owners can repay the loan amount over a period of   time. They need not submit their existing assets as collateral for this loan. The new equipment they procure acts as the lender’s security. If the borrower defaults, the lender can seize the new equipment to recoup their losses. This financing solution is perfect for the following businesses: ...

  Have you ever been asked to give a personal guarantee while applying for a business loan? A personal guarantee (PG), also called a director’s guarantee, is a common requirement in lending circles. For most of the   business loans , lenders would ask a PG from the director/major stakeholder to reduce their risks. But what does a PG mean and why do lenders want it? You must know what you are signing up for when you agree to a PG. Let’s break down this concept and decode what it means for you!   Personal Guarantee for a Business Loan: Here’s What it Means When you sign on the dotted line and accept a PG, it means that you will be liable for your business debt if your business fails to service or repay the debt. As the director or owner of the firm, you will bear personal liability for your small business loans . In case your firm defaults on loan repayments, a PG allows lenders to cover their losses by liquidating your private assets. For example, they may pursue you...

  Small and medium enterprises in Australia require different types of financing facilities to meet their business needs. One unique financing instrument is the trade finance facility. Trade financing is the opposite of debtors' finance . It allows business owners to access upfront cash to pay their suppliers in advance. This financing option can help entrepreneurs pay for inventory and manage their working capital needs. But why types of businesses can benefit from trade finance? Let's break it down and understand the salient features of this facility.   Trade Finance Facility: What Does it Mean? Trade finance is a solution to manage your short-term working capital needs. A trade finance limit allows a business to pay suppliers before receiving their goods. You can pay the supplier upfront when they deliver or make an advance payment according to their invoice terms. Lenders can fund upto 100% of your suppliers’ invoices so that you can manage these payments on time. Bu...

  Late invoices are a common pet peeve for small business owners. Many small and medium enterprises provide goods and services on credit. However, due to various reasons, their customers are not always timely when it comes to clearing these invoices. Late invoices can cause cash flow issues for firms, making it difficult for them to pay for crucial business expenses. Delayed customer payments can also give rise to administrative hassles as the business owner must spend time and resources to chase those payments. If you are a business owner struggling with this problem, invoice finance may be the perfect solution for you! Let’s understand what it means and how you can use it to deal with delayed payments.   Navigating Late Payments From Customers: What Should You Do? A delay in payment from a large account can cause significant cash flow problems for your business. You can try the following solutions to recoup your money and safeguard your firm: ●    ...

  Business owners can avail of convenient financing options while buying vehicles for commercial use. Business vehicle finance can help a firm fund its vehicle purchase without taking money out of the business. If you have plans to buy a new truck for business purposes, truck finance options can come to your rescue. There are different types of truck finance agreements to choose from. Let's break down the top truck financing options available for Australian business owners.   Truck Financing: What Does it Mean? Truck financing instruments allow business owners to take loans to buy trucks for business operations. The borrower can purchase new or used trucks with the loan amount, repaying the same with interest over a stipulated period. In most cases, the purchased truck functions as collateral for your business vehicle loan . A truck loan allows you to buy various types of commercial trucks. Some of the most common trucks purchased with truck finance solutions include: ...

  The modern business environment is characterised by dynamic changes and unpredictable developments. As a result, many small business owners in Australia turn to short-term business loans to fund their urgent requirements. A short-term credit instrument can help you access quick cash to manage financial problems in business. If you are on the fence about applying for a short-term loan, this list of advantages will help you decide!   Short-Term Business Loan: What Does it Mean? A short-term loan for your firm allows you to access a lump sum amount and repay it within a brief period. The tenure for short-term financing varies from one lender to the other. However, generally, the tenure lies between three and thirty six months. If you apply for a short-term loan, you can access secured and unsecured financing options. Businesses use this loan option to manage urgent expenses and navigate cash-flow fluctuations. These loans help businesses optimise the availability of working cap...

  Small business owners often rely on loans to finance their urgent business expenses. A range of loans and credit instruments can help firms navigate their financial requirements. Whether you apply for unsecured business loans or a loan against collateral, you need to avoid some critical mistakes. The loan application process involves several steps and multiple aspects. Hence, it is imperative to be cautious and avoid errors before and during this process. Let’s identify the seven common mistakes to steer clear of while applying for a business loan!   1: Failing to Formulate a Comprehensive Business Plan Lenders assess different aspects of a firm's stability before approving loans. A comprehensive business plan can provide a snapshot of the firm's future potential. A detailed business plan allows lenders to evaluate the feasibility of an organisation's business proposition and analyse its prospects. Therefore, you should prepare a structured business plan to explain y...