Category: Commercial

Small to medium business finance

Financial Focus: Instant Asset Write Off

Posted on by venrockfinance

Thinking of purchasing assets for your business?

Well in April the Federal Government unveiled the 2019-2020 federal budget, where they announced that the instant asset write-off has increased from $25,000 to $30,000. Previously the write-off was only available to small businesses with a turnover less than $10 million however this turnover threshold has also increased to $50 million.

This initiative allows businesses to write-off up to $30,000 of their asset expenditure (for new or second hand assets) against tax instantly rather than claiming the deductions over several years. You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.

This scheme has previously had a big impact on small businesses and with this extension more businesses will be able to claim the write-off.

Contact one of our friendly brokers today, who can help organise the finance for your asset purchase and we even have access to no financials lending products, which can make securing finance a lot easier.

Going Green

Posted on by venrockfinance

Venrock Finance is always looking for ways to improve our involvement within the community. Therefore, we are proud to announce our latest initiative where for every loan settled we will be donating trees through a partnership with the Carbon Neutral Charitable Fund. This is a local non-for profit organisation which works with the community to reduce and offset carbon emissions through various projects.

In addition to the above initiative, in 2016, Venrock took a major step forward in reducing the amount of paper we use in the office by changing from paper files to digital document management via our CRM system. Due to the current requirements of lenders, Venrock cannot be completely paperless; however, we are committed to continuing to evolve our internal systems.

If you are considering purchasing a new car or energy efficient equipment, please touch base with Venrock first as we have access to various loans for energy efficient products and services. Not only can we offer discounted loan rates for environmentally friendly vehicles, trucks, electric heavy machinery, agricultural equipment – we can also organise commercial finance for solar panels.

Please remember that Venrock is here to provide obligation free mortgage health checks, organise the finance for your new car, caravan or boat so you can get out and enjoy what our beautiful country has to offer.

Let’s work together to help build a better and sustainable future for the generations to come.

Financial Focus : Home Loans & Self Employment

Posted on by venrockfinance

There are many perks to working for yourself, but when it comes to applying for a home loan, it seems being your own boss sends up a red flag to banks and other lenders. Why? A salaried employee has a regular, steady income and is less likely to experience the cash flow volatility of a small business owner, contract, entrepreneur, trades person or freelancer.

 Yet by being proactive and accessing specialist advice,  self-employed applicants can also enjoy a successful and hassle-free road to securing a home loan. These are some essential steps.

SEEK EXPERT ADVICE

Trying to navigate the home loan landscape solo may not produce the outcome you desire. There are many experts who can help self-employed people access a home loan, and an independent broker is a good first port of call. At Venrock we are able to provide you with an up-to-date overview of which lenders on our panel are most comfortable lending to the self-employed, and also explain what sorts of loan products are available. We can also provide valuable advice around the sort of documentation you will need to have ready before we submit your application. Venrock will act for you and be on your side throughout this process.

GET YOUR AFFAIRS IN ORDER FOR A FULL DOC APPLICATION

Many lenders will lend to self-employed borrowers who provide their full business financials. This generally includes your personal and business tax returns for the past two years. If you have these documents on hand – and they reveal a fairly consistent income – applying for a loan should be relatively straightforward. However, the hectic schedule that comes with running your own business means many self-employed borrowers’ tax returns are not up to date. If you have time on your side, consider working with your tax advisor to lodge your outstanding returns. If you’re in a hurry, you may wish to explore the option of applying for a low doc loan.

CONSIDER A LOW DOC LOAN

Low doc loans are offered by a wide range of lenders and, as the name suggests, require 23 months of business activity statements instead of full financials, for example. A downside of some low doc loans is that they may only be available at a lower loan to property value ratio (LVR), which means you may need a larger deposit. Venrock can summarize your options quickly.

DO YOUR HOMEWORK

Checking your credit history is a good step for anyone applying for a home loan. If you’re self-employed, its definitely worth taking the time to make sure your credit history doesn’t include any defaults or errors – these can hold up your loan application if they are not rectified in advance. Taking the time to work out exactly how much you’d like to borrow is also a good idea. Venrock will show you how, without the inquiry showing on your file.

OUTSIDE THE SQUARE

It may be possible to apply for a home loan using a Certificate of Income Declaration – a document that verifies your income and is signed by your accountant. It’s wise to consult us before applying for a loan in this way, so we can advise which lenders will accept an income declaration. It should be noted, however, that applying for a loan using such a documents may mean that the required LVR (the portion of the property value you can borrow) may be lower, so you may need a larger deposit. While it’s a little more complicated for self employed borrowers, getting ah home loan can be easier than you’d imagine with Venrock Finance.

The Third Industrial Revolution

Posted on by venrockfinance

I have just read a fascinating article which theorises that the world is just entering it’s third “Industrial Revolution”.

The article was a series of extracts from an interview conducted with a well-known political and economic theorist, Jeremy Rivkin, who has a pedigree and sphere of experience which is imposing to say the least.

Amongst other things his CV contains years of experience as an adviser and consultant to Angela Merkel’s German Government, the European Union, the Chinese Government and various other European business leadership Groups.

In the interim, he continues his primary career, as an International lecturer in Executive Education.

In summary he has analysed the prevailing conditions which lead to the world’s previous well documented Industrial Revolutions, which were the British lead Industrial Revolution of the 18th and 19th Centuries, and the USA lead Industrial Revolution of the early part of the 20th Century.

He summarises that there needed to be three consistent situations, all of which were in sync, for each Industrial Revolution to commence.

These were chronological massive changes in communication systems, energy systems, and changes in respective information/human mobility.

In England these co incided with the development of steam energy, which helped power and develop the printing and manufacturing industry, and the telegram for communication, and then the evolution of the train industry for human and product mobility.

In the USA last century, the key changes were the evolution of oil and petroleum for energy, the development of the telephone, and then radio and TV, for communication, and as a consequence of the new energy source from oil, mobility changed rapidly with the development of cars, trucks, and buses.

He theorised that we have similar changes to the world as we have known it, in these three categories, happening right now.

As he sees it, traditional energy sources as we have known them, such as coal, are dead and buried, and are being replaced by sustainable energy sources such as solar, wind and water.

He then theorises that communication systems are going through their biggest generational change in the world’s history due to the internet, including, email, iPhone technology, and social media outlets such as Facebook and Twitter.

And then, the final link in the chain is information mobility, which has been revolutionised by outlets such as Wikipedia and Google.

I don’t think there could be any arguments that the entire world has never been more connected with immediate information access for the vast majority of us on this planet.

So, if his thoughts are correct, what does it mean for all of us?

The facts are overwhelming that the last two Industrial Revolutions completely changed the world as it then was.

What changes in our day to day lives, and business lives, can we expect FROM THIS Industrial Revolution, which he theorises, has just commenced in terms of its’ evolution?

Firstly, it is undoubted, that across the world, we have seen a slowing in productivity over the past 15-20 years. As the world has changed, issues like climate change have seen an increase in unemployment. If you don’t believe this, consider the case of the US car industry.

He argues that the key to international growth is the building of infrastructure, which is a long term strategy, but this creates a political conflict, as politicians are interested in short term policy, which will get them re-elected in 4 years’ time.

For companies and businesses, he argues that the change has already started, and will continue to gather pace in its implementation.

The old business world was as he sees it, sellers selling something to a buyer.

The old world was all about analysing a business market.

The old world was based on consumerism.

The new world will be service providers providing their service to users.

Think about revelations like Uber, and Air B + B.

The new world will be about networks, not markets..

And the new world will be about sustainability of service.

So…what to do?

I don’t think there can be any doubt, that we are living in an era of the fastest ‘Business’ environmental changes in the history of the world.

So, business people need to consider the fate of dinosaurs, which couldn’t adapt to a changing environment and became extinct, in the process. The time to have flexibility of thought, an ability to embrace and implement new technology, is now. Everybody needs to work out what parts of the new world of communications, of energy and mobility can be implemented into your own businesses.

Who knows…In the process some exciting new opportunities may arise.

It is a whole new world. A world which is being revolutionised – by energy, by mobility and communications.

Survive now, evolve, and thrive later or would you rather be a Dinosaur?

That’s my thoughts

Muzza from Warnbro….

Attitude is the Key

Posted on by venrockfinance

Thanks to the several thousand people who read my first edition of Muzza’a Blog.

There have been many books and educational material produced over the ages, relating to the theory that ‘Attitude is the key to achieving success’, Zig Ziglar and other positivity spruikers have focussed almost exclusively on this theme for decades.

But it seems to me that there is very little literature has been produced which examines the opposite. That is what level of life success can one expect from somebody who exudes ‘bad attitude’.

I was recently driving to an appointment, and stopped at a tricky little intersection which sits at the front of our building. As I was sitting there, cautiously looking both ways I spotted a bit of an old bomb of a car approaching the intersection straight on towards my car. The car was unkempt, so it attracted attention and was approaching the intersection too quickly.

Just as the car entered the intersection, without indication, it cut right in front of my stationary car’s projected pathway.

The driver had a sleeveless T Shirt on, which I could clearly tell as his right arm was fully outside the open window, as he was flicking ash from his cigarette onto the road. His left hand, was I assume, on the steering wheel.

After his car, had cleared away, I turned left and followed my intended route, which happened to be the same route as his car was taking. After a short journey, he suddenly turned right, again without indication. Again, it was my intended route, so, so did I.

He was travelling much faster than me, so by the time I arrived at the commercial office centre where he was trying to park his car, he had already mounted the footpath in his endeavours to park his car right out the front of the local social security office.

There was another car between him and my car, which was giving him a wide berth.  He sorts of straightened the car up, although still had the rear left wheel well up the curb, as he opened the car door and hurriedly exited the vehicle.

Still smoking cigarette which was in his mouth was immediately castaway onto the ground, as he was obviously heading somewhere important by his demeanour.

He was wearing black baggy track suit pants which didn’t cover up his underwear at the back. His T shirt had the sleeves ripped off, which obviously helped show off the art work which covered every square inch of both arms.

His hair was matted, scruffy and looked like it needed a good wash. Of course, he was unshaven, by about 3-4 days. He also looked like he needed a good wash.

I felt guilty because yes, I was pre-judging this man and as he headed straight towards the entrance of the social security office. I thought clearly, that he had every right to social security assistance, and as much right as any other citizen to be attending the local social security office.

But as I watched him enter the social security building, I couldn’t help to be curious about what his real attitudes were in life. Was he ambitious? Was he a hard worker? Did he have a family to support? If I employed him, would he take pride in his work? Would he be an asset to employ? Would he be a good team person? Would he display loyalty and a ‘can do’ attitude?

The words of my first boss came back to me in a resounding answer to my questions “attitude is what sorts out the winners from the losers in business and in life” were the advice he gave me.

He used to tell me that somewhere in the world, one person would be the world’s best petrol pump attendant one person would be the world’s best street cleaner, best hotel porter, etc etc and the reason for this, would have been the attitude they exuded and lived, while doing their job.

I looked again as this person basically pushed his way past two others on the way through the front door nearly bowling them over, and oblivious to their presence, and I think the answers to my questions became apparent.

This person did not exhibit a good attitude, by my definition, in that he had showed a blatant disregard for others in almost every action I had witnessed for the 5 minutes of our brief association.

I felt sorry for him, that he hadn’t worked for my first boss, and didn’t appear to have been given the life training and understanding that I had been given.

Maybe this will develop in him as the years evolve. For his sake, and for the sake of those people close to him, I really hope so.

That’s my opinion.

Muzza from Perth

Missing in Action

Posted on by venrockfinance

I am not an economist, but if I have learned one thing from being involved in the business finance world since 1978, it’s that the finance industry is a good barometer for the economy.

I think this is because we act for the totality of the business market, across all disciplines such as primary production, manufacturing, retail, services, housing, construction, health, mining and hospitality.

When businesses are growing, expanding and innovating, our phone rings nonstop. When it stops ringing, which is normally months before the Government announces that economic growth has slowed, we already know that business has stopped spending.

I have personally lived through a credit squeeze, two recessions, two major stock market crashes, a tech stock collapse, several property boom and bust cycles, and the killer of recent times – the Global Financial Crisis.

I have no doubt that the recent situation in WA, post the construction phase of the last resources boom, has seen the most severe and prolonged economic downturn of all the rest. And one thing which resonates with me very strongly is that the solution to all of the past economic crisis’ was to get business spending again.

This solution is something so basic, that I just can’t understand why the current brains trust within treasury, and within government, never seem to even consider.

And the major thing which got business spending again, in the past, was a thing called an INVESTMENT ALLOWANCE. I have seen the investment allowances of the late 1970’s and the 80’s and 90’s work perfectly, effectively and quickly and play a major role in turning past economies around.

Our current Government is trying to create the same outcome by lowering the company tax rate. that’s fine in that it provides, particularly the big end of town, with tax savings, but how does this   tax saving, guarantee that any of it gets spent on new plant, innovation or expansion.

It doesn’t and as I see it, that’s the problem.

In the old days, if a business ‘spent’ the money on growth and replacing old plant and equipment, it was guaranteed a tax saving. Giving company’s a guaranteed tax saving without getting anything in return, just doesn’t add up to me – particularly in this era, when companies seem to be judged on the dividend rate they are paying their investors. It must be very tempting for Company Directors, to pay more out in dividends, rather than to invest in the future. Particularly if that assists the achievement of their own remuneration KPI’s. If this sounds cynical, its’ probably because I am –  I have seen these issues at Board level.

What is obvious, is that the current Government strategy, has not yet worked and, is not yet providing economic stimulus.

What is clear is that something is missing in action in the Australian economy.

The old investment allowance incentives worked perfectly, so why are they not even a point of discussion in Canberra in 2017?

That’s my viewpoint.

Muzza from Perth