Your Business Angels and TDS Finance
Your Business Angels and TDS Finance can help with finance. Please complete the inquiry sheet or call us to see what we can find for you in the market. Please read our below bogs on finance, and feel free to make an inquiry about finance. While we can help with finance, it is one of the services with accounting, tax negotiation, business development and growth that we offer.
No matter what the needs we will try to find you finance for the business project, the business recovery or new assets that you wish to use in your business.
We also believe that finance is a tactic not a strategy. That means that if you are financing to say pay a tax debt you should have already a plan in place to manage the tax debt in the future, as well as having a profitable and compliant business.
That means throwing money at a problem doesn’t work until the problem is solved, or you will be back where you were in a short time. A business can use finance to grow.
New equipment that creates better productivity (make sure you also can expand the market), new assets that replace worn out assets (cars and trucks that are now becoming costly) and also to help you are a business owner have a smooth process to buy a home or investment property.
A word on borrowing money to pay tax
This usually is through using a real estate asset to fund paying down a tax debt or cash flow finance. We believe this can be the right thing to do once you have a plan to stay compliant, because
1. The tax interest is much higher than the real-estate interest, so you have an easier way to pay the debt down.
2. When we have a full sum to settle the debt, negotiating with the ATO for late payments and interest already charged is much easier. We save clients hundreds of thousands of dollars sometimes because we have a lump sum payment to make.
3. If you pay tax debt from the business instead of borrowing it, you are paying the tax debt from future income. You need to use that income to pay the tax, and therefore expose yourself to having more tax (income so also has to be taxed). For example, paying a company tax debt down creates 27.5% tax debt on the money you have just paid – vicious circle.
If you are using cash flow finance (and we will always suggest invoice finance not factoring) you need to make sure you don’t burn out your cash flow just for tax. We can help manage this.
A word about buying a house when you are in business
This get played up by a lot of lenders saying that sole traders and ABN operators have a hard time getting a loan. If your accounts are up to date, you have BAS etc all lodged and paid, or have a plan then often you will go mainstream and get a great rate and not be punished because you are in business.
In the case where there are a few issues, then you may be with a second-tier lender, with possibly just a good rate. We see lots of business owners in their homes, we see lots of opportunity for business owners to grow their property portfolio and we are happy to work with them.
A word about finance for a business opportunity
We want to hear about it. An established business with a track record will always be ahead for finance from a “start-up”. A start up will need to have “skin in the game” (some of their own money) and development loans usually need a specific plan in mind. We do need to talk to you.
A word of warning about those quick easy high (really stupidly high) interest rates that feed of you F-Post or cash flow.
We hate them.
We won’t recommend them.
If you have to use them, you have a real problem with your business. They promise sweet things about opportunities, but most people use them to short term dig themselves out of a financial problem, only to find paying the debt back has created a long-term problem. We see a lot of balance sheet with tax debt, peppered with these supposed short-term loans with outrageous interest rates. Talk to us, maybe the problem can be solved by the way you run your cash flow, the solution may be in the business which means that you can “fund” the problem internally.
Your Business Angels is here to help.