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Funding

MPF Funding

In endeavouring to assist our clients as much as possible with their cash flow, we are in a position to offer funding for the payment of your insurance premiums.  Premium Funding spreads your payments over eight or ten months.

MPF Funding provides funding for annual insurance premiums.  This does involve interest payments, but no security is required and it does not affect your normal banking or financial arrangements.

The principal benefits associated with funding your premium are:

It relieves and assists your cash flow
It creates a separate Line of Credit which does not require "bricks and mortar" security.  Security relies upon the un-expired premium of the insurance policies being funded
The credit charges may be Tax Deductible

As you are aware, our normal trading terms are net 14 days and, unfortunately, under the terms of the Insurance (Agents and Brokers) Act, we cannot guarantee cover for clients whose accounts are beyond the limits allowed under the Act.

To avail yourself of this facility, simply contact your Account Manager, and request a Premium Funding quotation.  Return the “Offer to Borrow” form enclosing a cheque for the initial payment made out to MPF Premium Funding, and the rest takes care of itself.

Trade Credit
Link to QBE

Finance

At McKenzie Ross Finance we are specialists in the commercial assets, commercial building and housing finance markets with alliances with many of the major lending institutions.  We are committed to ensuring that our clients’ needs are placed first and foremost.

Our role as finance brokers is to gain an understanding of your business needs and goals; collate the information and prepare a written submission in a format that explains the specific requirements.  The submission is then presented to a financier or financiers, either of your choice or to those we believe would be interested in the proposal.

We would favour a choice outside your existing bank so that arrangements you may have made remain in place and the item in question is the only collateral security.

We have highlighted a short selection of finance products available.  Once we have established which of the options preferred from a tax point of view, the second most important issue is that of cash flow.

Our fee for any opportunity of this type of finance is paid by the financier.

Asset Finance Options

The way in which a client finances any item can have a considerable impact on his or her business.  Taking a brief look at some of the different types of Asset Finance available and the tax impact illustrates the point.

Finance Lease

A finance lease provides 100% cover of the item acquired to be used in the business.

All payments are tax deductible as an operating expense and the contract includes a residual value to be paid at the termination of the term.

Novated Lease

Novated leasing is a flexible and convenient way for both employers and employees to acquire a motor vehicle as part of a salary packaging arrangement.  It operates similarly to a finance lease but no log book is required for the employee.

Operating Lease

An operating lease is an agreement to rent equipment for use in the business for a fixed period.  The equipment must be returned to the financier at the end of the lease period.  It operates similarly to a finance lease but it does not have to appear on the Balance Sheet.

Commercial Hire Purchase

A Commercial Hire Purchase agreement means the financier owns the item during the hire period.  When the final payment is made ownership is automatically transferred to the hirer.

Depreciation and interest are tax allowances at year end balance.  GST component may only be claimable on a monthly or quarterly basis.

Chattel Mortgage (Equipment Loan)

This is an agreement in which the item is the chattel against which you borrow funds.  Security for the loan is by way of a mortgage to the financier over the item.

Depreciation and interest are tax allowances at year end balance but GST is claimable in ‘one lump sum’.

Please note that you must seek your own taxation advice that is relevant to your own specific circumstances.