Personal Finance, Loans & Insurance

http://www.commercialfinance.org.au

HOW TO HELP YOUR COMMERCIAL FINANCE APPLICATION SUCCEED -THE THREE CRITICAL FACTORS

These days, whether you are borrowing 0,000 for your first Propery Development or Refinancing a ,000,000 Equity Line of Credit, it’s all about a few critical factors in determining the Funding Application outcomes. Understanding these will give you a much improved chance of obtaining commercial funding.

RISK: It may well be a great Project, but if there are delays, cost increases, lower Sale prices, how will the Lender recover their money?

REWARD: See above. Lenders actually lend money to make a profit. Sounds obvious, but many borrowers forget this at their peril.

EQUITY: If you can demonstrate you have a significant amount of your own funds invested in the Project it always helps in getting to the front of the queue. After all, if the Lender wanted to build anything from a Rainforest Retreat in the jungle to an Apartment Complex in Adelaide using 80%, 90%, or 100% of borrowed funds , they could do it themselves.

SUMMARY: Various weighting factors & averages are applied to all the above. Knowing how to present this information is a key element, and can add much to your chances of success.

http://www.commercialfinance.org.au

FINANCE BROKERS! *We have an excellent program to assist you*

Finance Broker Support   (“ABR” program)

Commercial Finance Comparison Lenders offers a full service back-office and deal management solution for professional finance brokers ( i.e. professionals engaged in regularly arranging finance on behalf of clients, for reward ).

The principle behind this service offering is that a professional finance broker is able to focus on obtaining and maintaining clients / relationships, while Commercial Finance Lenders handles the “admin” or “packaging” and “follow-up” elements of an application.

Professional finance brokers interested in this service are invited to join the Finance Broker Support program as an Authorised Business Referrer ( “ABR” ), and instantly receive the benefits of our complete back-office support structure. Our ABR network is growing to be one of the largest in the country – and the value of being part of a winning team under a recognised brand is becoming more and more critical for any independent broker or arranger of finance wanting to survive in this changing economic climate!

How does one go about submitting finance applications through Commercial Finance Lenders as an Authorised Business Referrer ( “ABR” )?
Simply follow the three steps below, and Commercial Finance Lenders would be delighted to assist with your clients’ applications:

1. Apply with us to Register as an “Authorised Business Referrer”, and you will receive contact from our office within one business day;

2. We may require some basic information ( profile / brief CV + registration / MFAA information ),

and upon receipt / approval will activate your ABR registration. Registration is free and instant (upon activation );

3. Submit applications on behalf of clients – Simply log in ( if you haven’t already ) and complete the very basic one page finance application / information form.  

How does the submission of client transactions / applications work in practice? Commercial Finance Lenders simply requires an ABR to log in and complete + submit the basic one page application / information form; We ask the ABR only to forward us a signed mandate ( generated
automatically when the deal / application is logged ), and any documentation they may already have in respect of the client / deal.

Thereafter, we are happy to liaise with the client ( i.e. the person requiring finance ), provide advice,
collect all required documentation for submission to appropriate financiers / capital providers, and manage the sign-up / closing of the transaction. We are able to advise clients at the outset ( i.e. upon initial receipt of the application and supporting documentation ) as to the prospects of success of their application.

In cases for example where we are aware of circumstances ( from experience ) that mean a client’s application is highly unlikely to be successful, we are able to save the client the time and trouble of submission and follow up. We are often also able to suggest alternative structures of products which may in the circumstances accomplish the same result for the client.

All communications with the client are typically copied to the ABR, and the ABR is sent regular weekly updates on the progress of all transactions / submissions; Should the ABR prefer us not to deal with the client ( i.e. for all communication to flow solely through the ABR ), this can be accommodated, but the ABR needs to make specific note of this when submitting the application to Commercial Finance Lenders. We do caution however that this tends to slow down the process, and we find this defeats a great deal of the benefit to the ABR from our offering ( i.e. the ABR still needs to be actively involved in the packaging / submission of applications ).

What information / documentation is necessary from my client, in order for an application to be submitted by Commercial Finance Lenders? Although each financial product or capital structure to be arranged may have a unique or specialised ‘recipe’ of required documentation, most applications or capital structures will require the submission of at least the following basic five items of standard documentation, eg: full personal & company A & L , Project Cashflow, Business Plan, completed Questionaire & Application.

What benefits are there for a professional finance broker in joining our ABR Programme?

Independent or even affiliated finance brokers who join Commercial Finance Lenders as ABR’s, receive the following advantages: Credit markets and financiers have become very conservative, given the global credit crisis and volatility in the world’s financial markets.

Approval rates for applications for most forms of finance have halved ( or worse ), and now more than ever an application for finance needs to be diligently and skilfully prepared / packaged in order to stand a chance of being approved; Our team is specifically skilled and experienced in this aspect, and is able to seamlessly add this value to any application referred through Commercial Finance Lenders.

Commercial Finance Lenders & associated Partners has contractual relationships to provide business to more than 30 various financial institutions and capital providers, many of whom may be more aggressive or have a specific appetite for a particular type of finance.

We are uniquely able to analyse any application, and submit it to the most appropriate financier or capital provider ( and often are able to submit to multiple financiers ). This ensures the best possible chance of a successful application for your client.Due to the volume of applications submitted by Commercial Finance Lenders to financiers, we are usually able to obtain better service and turnarounds than our ABRs or their clients may be able to alone. In this way, your clients benefit from our aggregated input to banks / institutions and clients’ applications are taken seriously.

In addition, in this market we find that Banks and Financiers are not prepared to accept referred applications, unless a broker has a very significant deal flow, and they have pulled / cancelled referral contracts with all but the largest volume referrers.

What fees or commission can I earn as an Authorised Business Referrer?
The ABR business model is very simple – 50% of the commission or fee actually received by Commercial Finance Lenders in respect of a successful transaction or application, is shared with the ABR who referred the transaction or application.

Higher percentages are shared with the ABR in circumstances where monthly finance volumes exceed certain thresholds;

It should be noted however that further terms and conditions may apply and are governed by specific contractual agreement to be entered into between Commercial Finance Lenders and the ABR.

Does my client pay more if the deal / application is referred through the ABR Program?
No – Commercial Finance Lenders shares its income with the ABR, and the client does not pay any more by virtue of being introduced by an ABR;

What does it cost my client to have Commercial Finance Lenders assist with a finance application?
We work purely on risk – i.e. there is no fee or commission earned by Commercial Finance Lenders (or therefore by an ABR ) unless an application is successful in receiving an offer.

In respect of a number of the more complex finance applications ( such as Commercial Property Finance ), we may charge a service / funding fee in the order of 1.5% to 2.5% ( excluding GST ) of the principal value originated. This would however be communicated prior to submission to financiers ( after initial evaluation by us of the application ), and it would naturally be up to the client to accept or reject our proposed fee – in any event, this fee would be the same as would be charged on personal application by the client.

It should be noted that any fee raised by Commercial Finance Lenders on this basis is completely separate from fees levied by the financiers, who may well charge their own raising or documentation fee.

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In Australia 1300 776 703

http://www.commercialfinance.org.au

The field of corporate finance deals with the decisions of finance taken by corporations along with the analysis and the tools required for taking such decisions. The principle aim of corporate finance is enhancing the corporate value and at the same time reducing the financial risks of the company. In addition to this, corporate finance also deals in getting the maximum returns on the invested capital of the company. The major concepts of corporate finance are applied to the problems of finance encountered by all type of firms. Corporate finance group deals with medium and large corporate clients and offers complete solutions to meet our clients’ financial requirements. The management of corporate finance attempts to maximize the firm’s value by making investments in the projects that have a positive yield. The finance options for such projects have to be done in a proper manner.

            Achieving the goals of corporate finance requires that any corporate investment be financed appropriately. Management must therefore identify the optimal mix of financing-the capital structures that result in maximum value. Management must also attempt to match the financing mix to the asset being financed as closely as possible, in terms of both timing and cash flows. Many factors should be considered like investment objectives, policy frameworks, institutional structure, sources of financing and expenditure framework etc. There are various considerations where shareholders pay tax on dividends, companies may elect to retain earnings, or to perform a stock buyback, in both cases increasing the value of shares outstanding etc. Thus, the goal of corporate finance is the maximization of firm value. In the context of long term, capital investment decisions, firm value is enhanced through appropriately selecting and funding NPV positive investments. These investments, in turn, have implications in terms of cash flow and cost of capital.

            Investment banking is one of the most global industries and is hence continuously challenged to respond to new developments and innovation in the global financial markets. It deals with raising capital, trading in securities and managing corporate mergers and acquisitions. Investment banks earn profit from companies and governments by raising money through issuing and selling various securities. There are many investment banks operating in the field of investment banking and finance. Investment banks, or I-banks, issue securities, manage portfolios of financial assets, trade securities, help investors purchase securities, provide financial advice, and support services. Finance areas are responsible for an investment bank’s capital management and risk monitoring. By tracking and analyzing the capital flows of the firm, the Finance division is the principal adviser to senior management on essential areas such as controlling the firm’s global risk exposure and the profitability and structure of the firm’s various businesses.

            When raising capital for a firm, an investment bank is acting as an intermediary between investors and the issuer. Capital raised can come from private investors or from pools of capital obtained within the public markets. They also engage in numerous proprietary activities in the financial markets. Investment banks also provide merger and acquisition services, both on the buy and sell side of a deal. The buy side involves identifying and facilitating the acquisition of a target company, while the sell side involves taking a client company to market at auction and identifying and facilitating the sale to a high bidder or acquirer with a strong strategic fit.

            New products with higher margins are constantly invented and manufactured by bankers in hopes of winning over clients and developing trading know-how in new markets in the field of investment banking. Product coverage groups focus on financial products, such as mergers and acquisitions, leveraged finance, equity, and high-grade debt. Thus, investment banking and finance can be one of the best options for your investment management and capital structuring.

If you are among the people earning a low income, then purchasing a car can be somewhat of a difficult task. You obviously won’t have the necessary financial capability. This does not always have to be a problem in making your dreams a reality. Obtaining a car financing loan is one of the best options that are available in today’s world.

Car financing for the car of your dreams is also something that requires lots of meticulous planning. Whether it is your first car, or whether it is just that particular model you have wanted to own all your life, car financing for it has to be done in a well thought out and planned manner.

Financing could be done by a bank, a financial firm or even by a friend of yours. Either way financing a car would mean you are under debt for a certain amount of time and will have to continuously pay an amount of money until it sums up to a greater amount than the value of the car.

The benefits of getting your car financed by an online financial institute are that you can compare your rates with other rates. Also it will be more up to date than a financial service provided by a bank or a dealership. These are not as competitive as an online car finance deal. But there are some frauds to be watched out for when you deal online.

There are leases and loans that can be taken out for the purpose of car financing from banks and other financial institutions, but interest rates of those loans and leases need to be checked thoroughly.

If you want to get a car financing done directly, then it is worthwhile to opt for a car financing loan which comes in short and long terms. A long term car financing loan comes with very high interest rates. However, if you are able to talk to a car dealer, you might be able to get the same loan at a much lower interest rate, assuring you of the best deal in town.

Additionally, getting the help and information from a dealer it means that you would have better bargaining and more power. If you really do your homework, you will notice that a few car dealers who can offer you a car financing loan have good business relationships with several financial institutions. In situations like this, your car financing loan easily approved without much trouble.

A car financing loan never comes with very low interest rates. It does not matter if you want to purchase a brand new car or a used one, the same goes for both.

Experts in the industry believe that purchasing the car and also getting the car financing loan from a reputed dealer is the best option, instead of getting it done from the company. Reputed and authorized dealers not only provide car financing loans at reasonable rates, they also provide car insurance and car refinancing.

Purchasing a car from a dealer means that you could pay your insurance premium to them without having to go to the insurance company. Therefore, if you want to get your hands on the best deal possible, it is advisable to get in touch with a good local car dealer and get your moneys worth.