InterPrac Leasing Newsletter-March 2008

Dear Member

Your client needs you now….
A recent survey within the business community has shown, that approximately 80% of those who participated in the survey did not know that an accountant could help with finance. A significant number welcomed the idea of receiving assistance and direction from their accountancy firm for their finance needs in general.

Active accountancy firms, using InterPrac, have adopted a regular method of communication with their clients via newsletters. The aim is to specifically make their valued clients aware that assistance is available for all of the practices services.

For marketing solutions, please do not hesitate to speak to our BDM Tony Green on 1800 700 666.

Cash Flow Finance
Cash flow is vital for business, especially those that offer extended invoice periods. In such instances, finance is available with no real estate taken as a security. This is also an innovative way to free up the overdraft or their personal equity which most small businesses rely upon to keep the business going - especially in tougher times.

Insurance Premium Finance
Most businesses incur commercial insurance bills to pay annually such as WorkCover, Professional Indemnity, Fleet insurances and all similar bills that often require payment up front. And some of them are huge. We can also finance such bills starting from as low as $5,000 over terms of 6 to 12 months.

To consolidate insurances to a common due date a client  can request from their insurance agent to have all of their premiums due at the same time. This will assist to wrap up all of the insurances into one finance facility. If an insurance agent won't do this for them, call our office and we will see if we can assist them at InterPrac General Insurance.

Chattel Mortgages
The popularity of financing an asset such as a Vehicle, Truck or Equipment using a Chattel Mortgage keeps growing each year due to the ability of clients being able to claim up to 100% of the GST upfront.

Often, when an individual or a business finances a vehicle for work purposes, the aim is to minimize the monthly commitment by taking the maximum term and maximum residual, which often results to a five year term and a 30% residual. Statistics are showing that, when trading in a vehicle, customers are finding it more and more difficult to obtain the value of the residual chosen or the payout at the time.

Avoiding such situations commences at the time the finance is organised.

An Example:
John finances a $40,000 vehicle via a Chattel Mortgage over a term of 60 months and 30% residual or $12,000 with a monthly commitment of $650 a month.

Bob Finances a $40,000 vehicle via a Chattel Mortgage over 60 months and a 20% residual or $8,000 and contributes the full GST ($3,400 approx) he will claim back from the ATO on the 4th instalment.

Bob repays the same amount per month as John of $650 a month.

As you realise from the two examples Bob has reduced his residual by $4,000 which will make a great difference when he trades in his vehicle.

For all inquiries regarding Structured Loan Facility, Cash Flow Funding or Premium Insurance Finance please call the leasing department on 1800 700 666.

Yours sincerely

Djamel Chettibi
National Leasing Manager
InterPrac Finance Services Pty Ltd
Ph: 1800 700 666
Fax: 1300 361 587
www.interprac.com.au