The holiday season is fast approaching, and while summer brings the sun and festivities, it can also bring major cash flow shortages that affect the health of a business.
Increased trading and inventory, staffing issues and chasing late receivables can all cause stressful peaks and troughs in cash flow. So how can business owners stay on top of their cash flow throughout the busiest time of year?
Here are three easy ways business owners can protect cash flow and ensure their business continues to thrive throughout Christmas and into the new year.
Create a detailed plan and forecast
As a small business owner, it’s crucial to have a good understanding of your sales and especially being aware of how seasonality affects your cash flow. Sales forecasting is a great way to do this, as it provides you with a good idea on what to expect in your bank account in the coming months.
An inquiry found by ACCC that the negative attention on the banks from the Royal Commission, the Productivity Commission’s inquiry into competition in the financial system and the ACCC’s Interim Report on residential mortgage prices had prompted some borrowers to review the prices they were paying for their residential mortgages.
For example, in the quarter ending 30 June 2017, 88,000 residential mortgages received a price reduction, while in the final quarter of the monitoring period (ending 30 June 2018), just over 144,000 residential mortgages received a price reduction.
In all, about 11 per cent of borrowers with variable rate mortgages had the price of their current residential mortgage reduced by one of the five banks under review in the year to 30 June 2018.
Despite this, the rate of borrowers switching lenders remained low; less than 4 per cent [...]
For first home buyers trying to make their mark on an increasingly impenetrable property board, a low 5% deposit can give them a much-needed break.
With the purchase of a new or existing residential property, we offer a maximum LVR of 95% inclusive of LMI. For those already in the market, the same applies for refinancing of a home loan or construction loan.
There is NO exception to this is for any interest-only loans where the maximum LVR remains at 90% for all purposes plus LMI
Concerned about Property Prices Drop!
For Aussies that purchased their property in the last three [...]
The Reserve Bank announced its cash rate decision for the month of December this afternoon, set against a backdrop of a property market that continues to cool despite record low rates.
As widely anticipated, the RBA has left the official cash rate on hold at 1.5 per cent. Australia’s top economists and market commentators were united in predicting another hold, including Leanne Pilkington, managing director at Laing +Simmons, who said increasing it now would have been unwise.
“Subdued housing transaction activity and price declines in some markets make an interest rate increase in the near term an unnecessary risk,” she said. “A strong labour market will be a key factor supporting the economy as we look to the new year.”
Economist Saul Eslake held a similar view, saying that an increase is still some way off. “Some of [the RBA’s] recent commentary appears to indicate slightly greater near-term concerns with regard to the possible consequences of [...]
A client in the construction industry needed urgent finance to support cash flow to help bridge the gap in account receivables to eliminate downtime and loss of income between projects. Unfortunately, due to unforeseen circumstances within the industry, the construction company struggled to secure partial payments for upcoming jobs, stopping them from purchasing required materials & equipment to begin construction and with Christmas creeping up, he was looking for an injection of $250,000 over a 12 month period, the funding was to allow them comfortably finish construction of existing jobs, as well as begin the wave of new projects.
With around $3.4m in revenue over the previous financial year, and close to $485k in average monthly inflows, their finances proved to be quite good. Due to an existing credit facility and outstanding funds owed for jobs completed, our risk assessment indicated that a line of credit for $150,000 would be the amount required for the [...]
With Australian personal debt skyrocketing in recent years & Christmas spending upon us, it’s likely 1 in 4 families will experience financial stress & drown under the weight of many loan repayments putting credit risk & managing debts challenging in 2019.
If this is happening to you, your family or friends, it’s important to know that you can help consolidate all debts into one easy, manageable repayment with DBIJ (Diligent, Bold, Innovative Just for you Financial solution’s). For example, recently we were able to successfully consolidate 12 debts for one couple!
The middle-aged couple with two dependents found themselves over-committed throughout the years, using unsecured credit to cover school fees, home renovations, overseas trips and some big purchases like a new car plus add Christmas spending’s. They were struggling to meet their monthly repayments for all of these debts, including their mortgage, which was in arrears due to a couple of missed payments.
We have lenders with a range of flexible products that offer Tax Debt solutions;
Whether it is Full Doc and Alt Doc borrowersUp to 90% LVRNo limit to the amount of tax debt to be consolidated
Are you concerned about your credit rating because of Defaults, you don’t have to be as all defaults up to two years ignored this will help you move on towards your desired goal, as we tailor solutions that make you look financially smart!! This offer is for a limited time, expires on 30/11/2018.
On Melbourne’s busiest weekend of auctions 27/10/2018 for the spring selling season, around one in two homes up for sale got passed in.The clearance rate for more than 1400 scheduled auctions across Victoria was 48 per cent according to Domain Group data. The result is a continued reflection of the softening property market decline according to agents and experts.
The Australian Bureau of Statistics estimated that 30,620 Australian residential houses commenced construction in June 2018, rising 9.6% from the year before.
With the construction market rapidly growing, it’s handy for you to know that you have a Flexible Home Loan as a construction loan – borrowing up to 95% of the property’s value once built (inclusive of LMI).
During construction, you only pay the interest on your construction loan as per funds drawn at stage by the builder– and you won’t start paying principal and interest until construction has been completed
With a lot of talk about the property market, www.realestate.com.au property outlook report provides some interesting insight into what’s happening across the country in property.
The report found that the demand for Australian residential dwellings has decreased by 0.3% year-on-year to September 2018, with the capital cities showing a distinct cross-section of highs and lows signalling a continuation of the two-speed market.
It also showed that national demand for houses has dropped by 0.5%, while demand for apartments across Australia has fallen by 8.5%.The auction clearance rate from WE 20/10/18 Melbourne had 894 properties up for auction out of which 427 sold and 467 passed in or withdrawn leaving a poor clearance rate of 48% the scene in Sydney was 49%.
If you are keen to understand how equity can be created without having to do much or leverage off this in the future don’t hesitate to give DBIJ Finance a call on [...]
When you buy a home using financing from a bank, refinancing your existing loan, or selling your home through a Real estate other than an all-cash sale, the home appraisal is a key component of the transaction. Whether you’re a buyer, owner or seller, you would want to understand how the valuation/appraisal process works and how an appraiser determines a home’s value which helps you making a knowledgeable decision.
What Is a Home Valuation/ Appraisal? & Why is it important?
A valuator is an unbiased professional opinion of a home’s value. Appraisals are almost always used in purchase and sale transactions and commonly used in refinance transactions. In a purchase and sale transaction, an appraisal is used to determine whether the home’s contract price is appropriate given the home’s condition, location, and features. In a refinance, it assures the lender that it isn’t handing the borrower more money than the home is worth.