Commercial Finance

The first step to buying a motel or accommodation business

Before you start looking for a suitable motel or accommodation business, it is recommended you determine how much you can comfortably afford to borrow. Let’s consider a Freehold Going Concern motel for a purchase price of $1,000,000. Based on typical lending LVRs the maximum borrowing capacity would be $700,000 (or...

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Tips to manage energy price increases

Following is a summary of tips on ways small businesses can save money by minimising the impact of energy price increases:   Snapshot: After an uncertain few years, rising energy prices have put salt into the wound for small businesses looking to stay afloat. Sharon Musker of WiseUp Energy says...

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Pros vs Cons: Using a Self-Managed Super Fund (SMSF) to purchase commercial property

According to everyone’s favourite government institution, The Australian Tax Office, as of 30 June 2022, Australian self-managed superannuation funds (SMSFs) held over $869 billion in assets, up 15% from the previous year and 25% over five years.  An SMSF is a private superannuation fund where the members are also the...

Property Development Finance: Busting the top 5 myths on Residual Stock Loans

In the world of property development, financing is the lifeblood that fuels growth and underpins success. (That sounded more grandiose than I intended, but you know what I mean.) Of course, finance needs to flow but correct structure should never be underestimated. Residual stock loans are often referred to as...

Top 3 Tips for Buying a Rent Roll

ONE: Get an experienced business finance broker on your side – EARLY! Find a finance professional who works with rent roll businesses regularly and understands how banks will assess your business opportunity. An experienced business finance broker will be able to help you define your business strategy and clearly communicate...

How do banks assess a business loan application?

Whether you are buying or expanding a new business or are looking to save money or negotiate better terms and conditions on your current business finance arrangements, the key to getting a better deal is as simple as, thinking like a bank!  Banks lend money on a very basic premise...

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How are Pubs Valued?

There are three valuation methods commonly used to value pubs and hotels in Australia today.   Going Concern Hotels 1. Capitalisation Capitalisation of Net Operating Profit is the primary method of valuation and is performed by assessing a net operating profit (based on the pub or hotel’s historical trading performance) and...

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The cost of doing business in a rising interest rate environment

James Kelder, Green Finance Group’s specialist commercial property finance broker shares his personal insights into the current state of the market, and more specifically how the current upward interest rate cycle is impacting broader bank policy and subsequent funding availability for commercial property and development projects. Q. How has the...

EOFY tax deductions for small businesses

As we head into the EOFY period, it’s critical to get across your business’s finances and so you can start the new financial year strong. It’s time to make sure you’re not paying more tax than you should by using cash flow management tools to organise your business, considering your...

Two finance formulas every small business owner should know

Two finance formulas every small business owner should know   In Summary: Aussie small businesses are in a growth mindset, with 85 per cent anticipating growth over the next year. Working capital is a useful metric to judge the financial position of a business gearing up for growth. Another metric...

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