Business Factoring Improves Cash Flow

In times where the economy slows and cash flow becomes a primary concern of small businesses factoring could offer a solution.

There is a factoring product available which provides businesses with an immediate cash injection by advancing up to 85% of the face value of an invoice assigned to it. The financing company then collects the debts. This not only frees up working capital for business to use when it is required, but also reduces the business expenses in many areas such as eliminating the cost of employing an additional person to handle accounts receivable.

RBA Cash Rate History to January 2009

The Reserve Bank of Australia, RBA, moved to yet again lower the cash rate following the board meeting today.

The attached graph illustrates the cash rate movement since January 1990 down to today's announced 4.25 percent.

Since the next RBA meeting is not until the 3rd February 2009 the cash rate should remain at 4.25 percent for the next 2 months at least.

The last time the cash rate was this low was between December 2001 and May 2002 when the rate increased 0.25 to 4.50 percent.

Total Home Loan


Total Home Loan Loan types: Full Doc

Interest type: Variable interest rate

Loan options: Term loan / 100% offset / Line of Credit (LOC) / VISA. Available for construction

Terms: A simple loan where regular repayments reduce the balance of the loan. An interest only period of 10 years is available. Maximum term of the loan is 30 years

Loan size: Minimum: $50,000 Maximum: $2M (up to 95% inc LMI) Maximum: $1M (95% cap LMI)

Home Loan Niche Products

Some home loan options that may not be available everywhere.

  • 6 units on one title
  • 100 Acres Rural Residential 80 percent Loan to Value Ratio
  • Up to $200 per week net add back for maintained company cars
  • Use latest figures for self employed 2 yrs required for 80 percent Loan to Value Ratio

Low Doc Home Loans

Many Lenders have been completely withdrawing or restricting their range of low doc home loans over the past few months.

Discount levels have been removed and total loan to value ratio in many cases is limited to 60 percent lvr.

Ability Finance do have several lenders still offering low doc home loans up to 80 percent loan to value ratio at competitive interest rates.

Premium Lo Doc still to 80 percent

Premium Lo Doc (Pro Pack) is a great option for self employed borrowers. Rate is currently Call

NSW State Government First Home Owner Grant

The NSW State Government has announced an additional grant which could increase the maximum Commonwealth Government first home owner grant of $21,000 to $24,000 plus there is the additional saving of purchase stamp duty in NSW where the purchase price is less than $500,000.

For example, family buying a newly-constructed home at $500,000, could be $41,990 better off under the following schemes:

Commonwealth Quick to Announce Interest Rate Cut

Commonwealth Bank have moved quickly to announce cuts to their variable interest rates of up to 0.58 percent

Changes to Variable Rate Home Loan / Investment Home Loan Rates as from Monday 10 November 2008

Following today’s announcement from the RBA to reduce the cash rate to 5.25%, interest rates for the following lending products (new and existing borrowings) will change from Monday 10 November 2008.

The rates are for the following products: