A business overdraft is a revolving line of credit. Attached to your business transaction account, an overdraft can assist in managing business cashflow by giving you the ability to draw on funds, when you need, up to an approved limit.

Asset finance allows a business to purchase new or used vehicles and other equipment without the need for upfront payment. Finance is a fantastic tool to help manage cashflow and in some cases offer benefits from a tax perspective (speak to your accountant about tax implications and a strategy that will work for you). The loan is usually secured to the financed equipment; keeping equity in other assets, such as real estate, free.

A guarantor is usually a close relative who can help you secure a loan for a commercial purchase by offering the equity in their home or another asset as additional security for your loan - no cash required! A guarantor is useful if you are not able to meet the deposit requirements for the purchase on your own.

As the name suggests, a variable rate loan means your interest rate will fluctuate when factors, such as the official cash rate, affect the lending market. A variable rate loan can offer you flexibility - such as the ability to make extra repayments and access to offset accounts or redraw facilities - but budgeting can be trickier as your repayment amount will change when interest rates rise or fall.

A fixed rate loan means your interest rate will be locked in for a set period of time. After the set period ends, your interest rate will revert to a variable interest rate or we can negotiate another fixed rate for you! You’ll have a little less flex with a fixed rate; for example, break fees may apply if you wish to pay your loan out before the fixed term ends. The benefits? Budgeting will be easier as your repayments will remain consistent and you wont be impacted when interest rates rise.

It’s possible to purchase commercial property though your self managed super fund (SMSF) or a trust. This option is appealing to some people as separating ownership from your business provides asset protection. Your accountant can help you discover if a trust or self managed super fund could be of benefit to you.

An interest only home loan allows you to pay only the interest calculated on your loan and none of the amount you borrowed, for a period of time. Opting for an interest only loan can benefit you by offering lower repayments for a period, a chance to enter the property market sooner and for some investors; potential tax savings. The cons? You wont actually be paying off your property during the interest only period and your loan will eventually revert to principal and interest which can be a shock to the budget if you’re not prepared.