Business and Finance

The portion of fixed rate residential lending increased by 50% at the beginning of the RBA easing of the monetary policy when Covid-19 first hit. The RBA originally thought that interest rates would remain low until inflation rose by 2 – 3 %, which isn’t expected until 2024. However, accordingly to a recent AFR article, many Banks bill futures imply that rates may begin to increase sooner than expected. In this blog we explore: Why are interest rates expected to rise? What this means for people with a home loan What this means for people entering the property market How...

As a business owner, knowing your breakeven point is so important. It is how you determine whether you’re making profit or not, yet you would be surprised to know that a lot of businesses don’t keep track of all costs involved. In this blog, we explore the importance of understanding your breakeven point, a calculation for businesses to use and the uses and limitations of using a break-even analysis. Key takeaways A breakeven point is the point at which total revenue equals total costs or expenses Fixed and variable costs are used to calculate a break-even point Break even point...

Clarity on who a business’s target customers are, their value proposition and their unique key capabilities are the foundations for business success and are especially crucial when facing capacity and capability constraints. A challenge facing many West Australian businesses this year is that current market conditions are presenting many more opportunities than there is the capability and capacity to take advantage of these opportunities.  Constraints such as retaining and finding staff, and sourcing equipment and supplies are commonplace across many industries.  See below a table that shows where; Opportunities are strong and weak in the economy; and There are forces...

Delays in home loan approvals coupled with a competitive residential market has increased buyers’ fear of missing out on their dream home. Did you know that pre approvals may not help you secure a home loan? In fact, pre approvals aren’t always necessary if you are wanting to buy a property. In this blog we explore this matter along with: The Difference Between a Standard & Fully-Assessed Pre-Approval What to Consider When Applying for a Pre Approval What is a Preliminary Assessment & how it can help you secure home loan finance How Ledge can put your mind at ease...

On 10 December 2020, the Government passed new insolvency laws, which include the extension of the existing COVID safe harbour laws to the 31 March 2021, and the introduction of a new debt restructuring process. Advisors and their small business clients should be alert to these changes and are encouraged to act immediately so they don’t risk trading insolvent or exacerbate existing cash flow problems. In this blog we explore the safe harbour provisions currently in place for businesses, the eligibility criteria for the new restructuring options, as well as the new debt restructuring reforms coming into effect now that...

As we say goodbye to 2020 and start our journey into the new year, we thought we would take some time to review the Western Australian economy, what has been and what’s in store for 2021. WA economic outlook: From uncertainty to resilience   Through what has been a very trying year for all, WA has been able to endure the global economic impacts of COVID. The states resilience has been aided by our mining production and commodity demand continuing in overseas export markets, with WA’s 2019-20 mineral and petroleum exports coming to a record total value of $173.7 billion....

If you’re considering purchasing an existing business, whether it’s buying into a business or buying the entire business, there are several business finance options that can assist you. But first, you need to know what to look for in a business to ensure it’s suited to you.   6 Questions to ask when buying a business Buying an existing business can be easier then starting a business from scratch. It takes away the pain and risk of getting the business off the ground. Once you have decided what type of business you’re interested in, you will need to do some...