5 ways to improve the financial position of your business.
What You Might Not Know About Your Business As a business owner, you’re familiar with most aspects of your business.
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Dr. Anderton is a consultant doctor in VIC. He had a mortgage for approximately $420,000 on a $1.2m valued property. Despite very good income, he was consistently late with repayments on a number of different loans he had.
Aside from the mortgage repayments ($3,300 pm), he had a Credit Card ($1,140 pm), a business loan ($3,200 pm), a car loan ($620 pm), a personal loan ($560 pm) and a Business Line of Credit ($1,005 pm) to cover Business Activity Statement (BAS) and staff Superannuation.
In total, he was paying $9,415 per month and regularly having to make late payments. Quite often the problem is not the actual debt, but the sheer number of different loans. It’s difficult trying to keep track of so many distinct repayments on different dates.
We refinanced the entire debt into a new mortgage loan of $600,000 plus an additional Line of credit for his business for $30,000 to enable him to keep on top of ad hoc expenses and BAS debt every quarter.
His monthly repayments have gone down from $11,714 per month to $3,686, given him $30,000 extra funding for his business, and has immediately reduced his mortgage term by 3 years.
What Dr. Anderton was able to do was reduce his monthly outgoings by $8,028 per month AND reduce his mortgage term by 3 years.
He is keen to pay off his mortgage so with the $8,000 savings, by dedicating only half of this ($4,000 extra per month) he will have his entire mortgage paid off in less than 8 years!!
Dr. Anderton is a consultant doctor in VIC. He had a mortgage for approximately $420,000 on a $1.2m valued property. Despite very good income, he was consistently late with repayments on a number of different loans he had.
Aside from the mortgage repayments ($3,300 pm), he had a Credit Card ($1,140 pm), a business loan ($3,200 pm), a car loan ($620 pm), a personal loan ($560 pm) and a Business Line of Credit ($1,005 pm) to cover Business Activity Statement (BAS) and staff Superannuation.
In total, he was paying $9,415 per month and regularly having to make late payments. Quite often the problem is not the actual debt, but the sheer number of different loans. It’s difficult trying to keep track of so many distinct repayments on different dates.
We refinanced the entire debt into a new mortgage loan of $600,000 plus an additional Line of credit for his business for $30,000 to enable him to keep on top of ad hoc expenses and BAS debt every quarter.
His monthly repayments have gone down from $11,714 per month to $3,686, given him $30,000 extra funding for his business, and has immediately reduced his mortgage term by 3 years.
What Dr. Anderton was able to do was reduce his monthly outgoings by $8,028 per month AND reduce his mortgage term by 3 years.
He is keen to pay off his mortgage so with the $8,000 savings, by dedicating only half of this ($4,000 extra per month) he will have his entire mortgage paid off in less than 8 years!!
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What You Might Not Know About Your Business As a business owner, you’re familiar with most aspects of your business.
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