Charter Group Finance 

Specialised Securities
 

Not all lenders will look at the security you are offering for a loan in the same way.  Different lenders will offer varying loan to value ratios on a property (the loan amount expressed as a percentage of the value of a property) and on some properties you may find that a lender will not be willing to take the asset as security at all.
 

When you think about this it is quite logical. If you get into any trouble with servicing your loan and a sale of the security property is required in order to repay the loan, the lender needs to know that the security property can be sold quickly.  The bank will also want to know that the value of that property is unlikely to fluctuate too much in value, which will obviously affect their level of risk.
 

However, what is a logical scenario to a lender is not always the answer you are looking for!  This is where we step in.  Our dedicated team of mortgage brokers is familiar with many different types of specialised securities.  We also have relationships with various lenders and are therefore able to source the right loan offer in relation to your requirements.
 

Some common types of specialised securities include;
 

• Company title property

• Multiple units on one title

• Studio apartments

• Vacant land

• Holiday rental property e.g., hotels, motels etc

• Retirement units

• Flood affected property

• Warehouses and factories, zoned for industrial use

• Commercial Office and Retail space

• Service stations, childcare centres, parking stations etc

 

Call us now to find out how we can help you with your specialised security property.

Self Managed Super Fund (SMSF) Loans
 

Many people with funds in superannuation have been enjoying the freedom of choosing how those funds are invested through self managed super funds.  With the advent of the self managed superfund, managing your retirement funds is now fairly common as people shun large corporate public funds and opt to control their nest egg themselves.
 

There are significant rules and regulations in place to govern the management of your superannuation in order to protect your retirement savings.  Until recently for instance it was not possible for a superfund to borrow funds for investment purposes.  This ban has now been lifted and superfunds, including self managed superfunds, are able to borrow money to directly purchase real estate to further the investment portfolio of the fund.
 

There are still some restrictions in place in structuring these transactions for example; specific entities need to be established in order to facilitate the borrowing/ownership of the assets.  Plus there are complex issues involved in relation to stamp duty and capital gain tax and the loan products available.  So it is important to speak to expert legal and accounting advisers as well as to mortgage brokers experienced in these sorts of scenarios, as we are.
 

The benefits of using your superannuation funds to invest with can be great.  Wouldn’t you like to be paying off an investment property with the 9.5% super payments your employer makes on your behalf?  Please give us a call to talk over your situation and to see if you could be enjoying the benefits of investing with a self managed super fund loan.

Property development
 

We are specialists in structuring complex financing solutions for commercial and residential property development.
 

We can provide construction and development finance options that provide innovative and strategic alternatives to conventional development finance. Our consultants are trained to provide you with innovative finance solutions aimed at ensuring you maximize the return on your investment.
 

So if you are looking at financing any sort of development, equity funding, loan restructuring or refinancing or asset acquisition, talk to us an find out how we can help you.
 

Mezzanine Funding
 

As a developer in the current climate, you may find that you require a specialist broker to help you source funds to complete your project.  This is where we can help you.
 

Our brokers are experts in sourcing the best deals for developers no matter what your project may be.
 

We understand the complexity of funding property development projects and that almost every project is different.  We can offer a range of funding from independent sources as well as from banks, ensuring the best financial package is available to our clients. 
 

In addition, syndicates, private individuals and investment companies, second mortgages are also part of our funding sources which can be structured according to your requirements.
 

So call us if you have a project you need to finance as we are here to help.

 

Debtor Finance
 

Debtor Finance is a financing product that allows you to maximise your cash flow, which is a key factor in the success of any business.  Unlike traditional lending products, this form of lending enables you to access funds using the strength of your sales as leverage.
 

By borrowing against the outstanding value of your trade debtors you won’t miss out on business opportunities that you otherwise may have which can help you achieve your business goals and targets.
 

You might use this type of product if your business sells goods or services on credit terms and consequently has restricted liquidity, or if your business is expanding or if your business activity is affected by seasonal trends. 
 

Bank Overdraft
 

Being in business, particularly small business can be a regular challenge in terms of managing your day to day cash flow.  We can arrange for an overdraft account that allows you to have access to a pre-determined limit and you only have to pay interest on the amount that you have used.

Business Line of Credit
 

The Business Line of Credit can be a vital tool for many businesses. It is a revolving credit facility commonly used for short-term working capital and seasonal business requirements. It functions in much the same way as a residential line of credit does, allowing the principal to be repaid and redrawn at any time up to your approved credit limit. Many forms of security may be accepted including residential, commercial or rural property, business assets or a combination of these.
 

LEASING
 

Trying to figure out which finance product is right for you can be confusing. In fact, we recommend discussing your situation with your tax professional. However, to simplify your decision process we outline the choices available to you here.
 

Lease products fall into two categories as either a finance lease or operating lease. They differ in the way they treat ownership, disposal and residual risk on the vehicle. Hire purchase options are available and function in a similar fashion to a loan to purchase an asset.
 

In order to decide on the most appropriate type of finance you first need to consider the following: -
 

• Do you wish to own the asset at the end of the lease period?

• Do you use the asset for business purposes more than 50% of the time?

• Are you looking to finance the vehicle only, or do you also want a range of fleet management services?

• How long do you intend to keep the vehicle and how many kilometres will you travel?

• Do you want or need to show the asset on the company balance sheet?
   

Finance lease
 

A finance lease is a form of rental agreement under which you lease an asset for an agreed period and rental. A residual value is set upfront to reflect the asset’s value at the end of the term. Under the conditions of most finance leases you have no option or right to purchase the asset. However, it is common practice that most financiers will consider an offer from you to purchase the asset at the end of the term for the residual value. Alternately, you may trade it in on a replacement, return it to the financier paying the difference between the residual and market value (residual risk) or even extend the lease for a further term.
 

Operating/Maintained lease
 

A fully maintained operating lease offers an organisation the benefits of a hassle-free method of vehicle usage.  It is finance not shown on the balance sheet and in one monthly payment takes care of all costs associated with the vehicle i.e., all costs in relation to maintenance, insurance, finance are included.  Once you decide on the motor vehicle required you simply decide on the length of the lease required and calculate how many kilometers you will travel in each year.  Based on this the financier will calculate a monthly repayment.  At the end of the lease term you hand the vehicle back to the lender with no residuals or balloon payments required. 
 

Commercial hire purchase
 

Commercial hire purchase (CHP) is an agreement between the purchaser and the financier whereby the financier owns the vehicle or equipment during the hiring period. It differs from a finance lease in that the goods automatically become yours once all terms of the agreement have been completed – usually when the final installment is paid.  As such it is finance taken out by a business when they wish to purchase the goods. A CHP can be arranged with or without a final balloon payment at the end of the term depending on what your budgetary requirements are. The repayments are fixed for the term of the CHP. An upfront deposit or trade-in, which will reduce your rental commitments, is optional. It is accounted for on the balance sheet.
 

Chattel mortgage
 

Similar arrangement to a hire purchase but with specific GST benefits, which in certain circumstances will allow the entire GST proportion, be claimed in the first BAS period after purchase. Loan structure can be tailored in a similar fashion to a CHP or finance lease.
 

Novated lease (salary packaging)
 

It is an agreement between an employee, the employer and the financier. The lease is taken out in the name of the employee and the employer agrees to take on the repayment responsibilities for the duration of the employee’s employment. It is not recorded on the balance sheet of the employer. If the employee leaves this employer, the lease may be transferable to a new employer or the employee can take on the responsibility of the repayments. The original employer no longer has any financial responsibility and is not left with a vehicle they do not require. The benefit to the employee may be the reduction of tax as a result of having the repayments made out of pre-tax dollars. There may be fringe benefits tax consequences (based on the vehicle value and kilometres travelled) as a result of the transaction between the employee and the employer, so advice from your tax professional is recommended. Similar to a finance lease, residual risk rests with the employee.