1. ABN Money - General
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- Preserves working capital
- Allows for significant tax deductions
- Matches term with life of asset
- Protects against equipment obsolescence
- Fixed rate/fixed term allows for cash flow planning
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Vehicle & Equipment Finance is generally easy to obtain if the following criteria are met: - The business has been trading over 2 years.
- The business is profitable and can show the debt can be serviced.
- The latest financials and tax returns are available.
- The directors have reasonable equity in property (if a private company is the borrower).
- The client has a good credit history
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- Alliance Finance
- ANZ
- Bank of Queensland
- Capital Finance
- CBA
- Key Equipment Finance
- Macquarie Bank
- Westpac
- LeaseChoice
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Your ABN Bookkeeper has the important role of collating all of the information needed to request a quote and make an application for finance. Generally this information is readily accessible by your bookkeeper and if not, they will liaise with you to get the required information. Once documents are received from the financier, your Bookkeeper will liaise with you to get the documents signed and returned to us.
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Current Financial Statements Current Tax Return and Notice of Assessment Signed Asset & Liability Statement Current Council Rates Notice (if a home owner) Signed Privacy Authority Copy of Drivers Licence or Passport AND Medicare Card or Credit Card for all signing/guaranteeing parties If a Trust entity – Trust Deed including beneficiary details If a Novated Lease – Copy of 2 payslips indicating car allowance or letter from employer confirming car allowance
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There is no application fee payable to ABN to use the service. It should be noted that finance companies will commonly impose document preparation fees and application fees on the successful approval of finance, however, these will be fully outlined in the "no obligation" quote that you will receive.
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We have access to a wide range of financiers which ensures a competitive interest rate on all applications.
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The solution is delivered by ABN Money electronically and thus our location is no barrier to you accessing the service.
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Once we receive a quote request from your bookkeeper we will provide them with a written quote within 4 business hours of their request to us.
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This will depend on a few items including the type of equipment being financed and the financier. Once your application is received we will advise you of an expected settlement date. Importantly, settlement can take place once signed documents have been electronically returned to us. While we require the original signed documents to be forwarded to us by mail, this will not hold up settlement.
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Your Bookkeeper must be a member of ABN to access the service on your behalf. If your bookkeeper is not a member of ABN, they can visit ABN’s website here which will give them an excellent understanding of the many benefits they will receive as an ABN member and details of how to join.
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Yes. This is of paramount importance to ABN Money as it no doubt is to you. When we ask your Bookkeeper to send us your confidential information, we will recommend that your bookkeeper do so through our Bookkeeper-Client Connect file transfer facility. This is a secure 128-bit encrypted channel which is protected by Secure Sockets Layer (SSL) technology. The information we supply to you will also typically travel using Bookkeeper-Client Connect
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Nothing will happen to your existing loans should you cease using the services of your Bookkeeper. Once the loan is established the term and conditions of your finance contract will continue. The service is only available to Bookkeepers who are members of ABN which means you would be unable to access the service in the future unless your bookkeeper is a member of ABN.
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2. ABN Money - Product Information
Disclaimer ABN does not provide tax and accounting advice. Product descriptions are for information purposes only. Please seek independent advice to ensure you have the best finance solution for your business.
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- Flexible product best suited to business clients on an accrual basis for GST
- Lender “owns” the goods until final payment
- Deposits or trade in equity can be applied
- Interest and depreciation claimed by borrower
- GST claimed upfront if on accruals basis
- GST claimed across the term if the borrower is on cash basis for GST
- Balloon payments can be included during the term and at maturity if desired – no tax guidelines applicable
- Interest rate is fixed
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- Flexible product suitable to business clients on either an accruals or cash basis for GST
- Lender “owns” the goods until final payment
- Deposits or trade in equity can be applied
- Interest and depreciation claimed by borrower
- GST claimed upfront if on cash or accruals basis
- Balloon payments can be included during the term and at maturity if desired – no tax guidelines applicable
- Interest rate is fixed
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- Best suited to business clients who prefer to minimise capital expenditure
- Lender owns the asset as a “Lessor”
- Borrower rents the asset via a monthly payment
- Rental payments are usually expensed outright by the borrower
- GST on rental payments claimed across the term
- Residual values set in accordance with ATO guidelines
- Borrower indemnifies Lessor for residual value
- Rental payment and term are fixed
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- Best suited to employees wishing to “salary sacrifice” the costs of owning a car
- Lender enters into lease agreement with the employee
- Employee then enters into a Deed of Novation with the employer
- Employer pays the rental payments to Lender out of the employee's pre-tax salary and claims the deduction
- Credit decision is based on credit worthiness of the employee
- If the employee leaves the employer, the lease payment responsibility reverts to the employee
- Residual values set in accordance with ATO guidelines
- Employee indemnifies Lessor for residual value
- Rental payment and term are fixed
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- Best suited to office equipment and assets that require “off balance sheet” financing or where assets become technologically obsolete
- Rental is fully expensed
- Interest rate and term fixed
- Preserves capital
- Easy form of finance with short form documentation
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