At Trailblazer Finance, we’re excited to unveil our latest innovation – the Space Shuttle Loan. This new product is a significant addition to our portfolio, reflecting our commitment to providing innovative financial solutions tailored to the needs of brokers and other professionals in the financial services industry.
The Trailblazer Finance Journey
Trailblazer Finance has built a strong reputation in the financial industry through our diverse range of products and services. We facilitate the buying and selling of trail books, provide loans to support these transactions, and offer comprehensive valuation services for businesses. Additionally, our advisory services help clients navigate mergers, acquisitions, and corporate restructuring, leveraging our deep industry expertise.
Our Suite of Loan Products Includes:
– Vanilla Loan: A straightforward, no-frills term loan.
– Flexible Drawdown Facility: Allows staged funding withdrawals.
– Simple Facility Loan: For agreed drawdown amounts.
– Premier Loan: Long-term amortisation for established brokerages.
– Balloon Booster Loan: Features a balloon payment at the end.
– Participation Loan: We become silent partners with no set repayment.
For 13 years, we’ve focused on lending to mortgage brokers, financial planners, accountants, and professionals with recurring cash flow. However, the Space Shuttle Loan marks a new chapter for us, offering unprecedented terms and opportunities.
The launch of the Space Shuttle Loan
The Space Shuttle Loan is designed to meet the evolving needs of businesses by offering extended terms, competitive interest rates, and higher borrowing limits. Here’s what makes this product unique:
- Extended Term: The first business loan with a term of up to 30 years.
- Competitive Rates: Lower interest rates compared to our other products.
- Higher Borrowing Limit: Borrow up to $6.5 million.
How It Works
The Space Shuttle Loan is ideal for businesses looking to diversify, expand, or acquire new assets. Here’s a breakdown of the application and approval process:
- Inquiry: Contact us via phone or email to discuss your suitability.
- Online Application: Complete a detailed loan application.
- Valuation: We conduct valuations on your trail book, business, and property.
- Consultation: We discuss your business performance and potential.
- Loan Offer: Receive a verbal loan offer followed by a formal letter of offer.
- Legal Agreements: Finalize legal documentation.
- Settlement: Complete the loan process within 4-8 weeks.
Key Benefits
– Increased Borrowing Power: Enhanced borrowing capacity with competitive terms.
– Cash Flow Protection: Flat monthly repayments with an initial interest-only period on the property component.
– Flexibility: Use the loan for expansion, diversification, acquisition, or retirement capital.
Why the Name Space Shuttle?
Similar to the space shuttle, our loan provides an initial boost with significant borrowing power, followed by a streamlined repayment structure. The loan splits into two parts:
– Property Loan: Interest-only for the first five years.
– Business Loan: Principal and interest payments over the first five years.
After five years, the business loan is repaid, leaving a competitively priced, long-term property loan.
Do I Qualify?
You need an ABN, GST registration, and a minimum of two years in business to qualify. We will also review your credit file and require directors’ guarantees and property as collateral. Our online application process respects your credit file’s integrity, requiring business statements for the past two years.
Join Us on This Exciting Journey
The Space Shuttle Loan is poised to revolutionise business financing. We invite you to explore this opportunity and see how it can elevate your business. Book your 20 minute complementary call to discuss your eligibility.
In the wake of the Covid era, the Australian Taxation Office (ATO) adopted a lenient stance toward small businesses with GST, PAYG tax, and income tax obligations. However, the ABC recently reported that this period of leniency has come to a screaming halt and the ATO is now aggressively pursuing small businesses that owe tax debt, implementing stringent debt collection measures and shutting down businesses unable to comply.
The Current Situation
Rob Heferen, the new commissioner of the Australian Taxation Office, recently highlighted the severity of the issue. According to ABC News, small businesses collectively owe the ATO about $24 billion relating to their business activity statements (BAS). Heferen expressed concern over the growing trend of businesses falling behind on these payments, noting, “We are seeing an increasing number of businesses fall behind on these types of payments, from which point it is very difficult for businesses to get back on top of their obligations and remain viable.”
The numbers are alarming. Small businesses account for 65% of all collectable debt owed to the ATO, which amounts to $32.5 billion. Over the past four years, the total collectable debt, from businesses and individuals, has surged from $26.5 billion in June 2019 to $50.2 billion in June 2023 — an 89 percent increase. This sharp rise highlights the escalating pressures on small businesses across the country.
Aggressive Debt Collection
In response to the mounting debt, the ATO has intensified its debt collection efforts. Businesses with unpaid tax debts face the risk of being shut down if they fail to settle their obligations. The ATO’s hardline approach is a stark contrast to the leniency shown during the pandemic, and it serves as a brutal wake-up call for small business owners.
While the ATO is offering payment plans to help businesses manage their tax debts, these plans aren’t a get out of jail card and currently carry a general interest charge of 11.36%. Not only are you paying a high interest rate, these loans also have short repayment terms so your monthly payments can be astronomical. For many, meeting these repayment conditions may prove to be an insurmountable challenge, potentially crippling their operations.
What Can Businesses Do?
We reached out to Antony Resnick, insolvency expert and partner at DVT Group to get his thoughts on what businesses can do if they are burdened by ATO debt. He cautioned not to drown in the sea of debt but to raise your hand and ask for help. Companies that lodge their BASs but do not have the money to pay their bill are far better off from a personal liability standpoint than those who don’t lodge and don’t pay.
One option for businesses is to refinance the ATO debt through private lenders. TrailBlazer Finance is one of the few lenders willing and able to step up to the plate offering refinancing options that allow businesses to spread out repayments over five years, providing much-needed cash flow to continue operating and growing.
Take the First Step Toward Tax Debt Relief
If you’ve got ATO debt to pay don’t ignore it, raise your hand and ask for help. We understand the pressures small businesses face and are here to help you find a solution that fits your unique situation. We invite you to set up a complimentary call with our experienced team to discuss your specific circumstances and explore how our refinancing options can help you. Reach out to us today at 1300 139 003 to clear the decks and get square with the ATO.
Understanding the factors influencing trail book valuations is not just important but pivotal for making well-informed decisions in the acquisition process. These valuations encapsulate a complex interplay of multifaceted variables that can significantly impact the value and viability of an acquisition. Determining the factors influencing trail book valuations is crucial for making informed decisions. TrailBlazer Finance can help you understand the intricacies of trail book pricing across various sectors:
Mortgage Trail Books
Historically, mortgage trail books have traded at multiples ranging from 1.5X to 3X annual trail revenue. However, pricing varies significantly based on the quality of the asset. Just like buying a used car, factors such as client retention, revenue consistency, and asset quality play pivotal roles in determining the price. It’s essential to conduct external valuations to accurately assess the value of the asset being acquired.
Financial Planning Books
The valuation of financial planning books is typically based on a multiple of annualised recurring revenue (CSR), with historical norms around 3X. However, market sophistication has led to variations in pricing based on revenue streams, client base stickiness, and service offerings. Conducting detailed valuations and analysing revenue breakdowns are essential steps in determining the fair price for financial planning books.
Real Estate Rent Rolls
Rent rolls, representing real estate rentals, typically trade within the range of 2.5 to 3.5 times annual revenue. Factors such as client retention, vacancy rates, and rental reliability influence pricing. The focus is primarily on management fees and the quality of underlying properties.
Accounting Practices
Accounting practices are usually valued at 0.8 to 1.2 times annualised revenues, with considerations for achievable EBITDA. Client base stickiness, service availability, and eligibility of potential acquirers significantly impact pricing. Conducting thorough due diligence is essential to accurately assess the potential value of accounting practices.
Navigating trail book acquisitions requires a nuanced understanding of market dynamics and valuation principles.
Taking into account elements such as asset quality, revenue streams, and client retention empowers you to make well-informed decisions and negotiate equitable prices. Engaging with experts like TrailBlazer Finance and conducting thorough valuations are indispensable components for a prosperous acquisition journey.
For finance professionals gearing up for an acquisition, our team offers confidential consultations customised to your unique circumstances. Alternatively, immerse yourself in our comprehensive eBook, “Acquisition Ready,” to acquire a deeper comprehension of the acquisition process and arm yourself with invaluable insights for achieving success.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.
Embarking on an acquisition journey entails navigating a maze of legal documentation essential for a successful transaction. Let’s delve into the key legal documents required and their significance in the acquisition process:
2nd Level: Reference ability Checks
Delving deeper, it’s essential to scrutinise the character and reputation of the vendors involved. Conducting reference ability checks by reaching out to business development managers, partnership managers, and individuals associated with the target acquisition provides invaluable insights. Identifying any red flags regarding the vendor’s integrity or reputation is crucial, as acquiring an asset tainted by poor character can prove detrimental to your business. TrailBlazer Finance has numerous methodologies to delve deep.
3rd Level: Legal Searches
Lastly, thorough legal searches are indispensable to ensure a seamless acquisition process. These searches encompass verifying ownership, clearing titles, and identifying any encumbrances or outstanding debts associated with the asset. By meticulously conducting these searches, you safeguard against potential legal entanglements that could impede the acquisition’s success.
Although every acquisition journey may unfold with its own set of nuances, certain foundational principles persistently stand firm. With the expert assistance of TrailBlazer Finance, meticulously addressing these aspects of due diligence empowers you with the optimal opportunity for success in your acquisitions endeavours.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.
In the ever-evolving realm of business expansion, acquisitions emerge as powerful drivers of success. They present a thrilling opportunity to instantly double your business, skipping the lengthy process of organic growth. Through acquisitions, you not only achieve increased scale and efficiency but also gain the freedom to delegate day-to-day operations. Furthermore, your margins, purchasing influence, and market share undergo swift enhancement, marking the dawn of a prosperous new era.
However, the road to successful acquisitions is paved with layers of due diligence. Successful acquisitions hinge on meticulous due diligence across asset valuation, reference ability checks, and legal searches. By prioritising these critical steps and leveraging the expertise of TrailBlazer Finance, you pave the way for transformative growth and prosperity in your business ventures.
1st Level: Asset Valuation Due Diligence
At the outset, it’s imperative to conduct due diligence on the true value of the asset you’re acquiring. Engaging a third-party expert to perform a detailed valuation ensures accuracy and transparency in assessing the asset’s worth and its potential for leveraging. While some may possess the expertise and resources to undertake this task internally, most opt for the objectivity and proficiency offered by external valuers.
2nd Level: Reference ability Checks
Delving deeper, it’s essential to scrutinise the character and reputation of the vendors involved. Conducting reference ability checks by reaching out to business development managers, partnership managers, and individuals associated with the target acquisition provides invaluable insights. Identifying any red flags regarding the vendor’s integrity or reputation is crucial, as acquiring an asset tainted by poor character can prove detrimental to your business. TrailBlazer Finance has numerous methodologies to delve deep.
3rd Level: Legal Searches
Lastly, thorough legal searches are indispensable to ensure a seamless acquisition process. These searches encompass verifying ownership, clearing titles, and identifying any encumbrances or outstanding debts associated with the asset. By meticulously conducting these searches, you safeguard against potential legal entanglements that could impede the acquisition’s success.
Although every acquisition journey may unfold with its own set of nuances, certain foundational principles persistently stand firm. With the expert assistance of TrailBlazer Finance, meticulously addressing these aspects of due diligence empowers you with the optimal opportunity for success in your acquisitions endeavours.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.
A successful acquisition has the potential to transform your business, offering immediate scalability, improved efficiency, and the ability to delegate day-to-day operations. Moreover, it can result in instant enhancements in margins, purchasing power, and market share, propelling your business towards unprecedented success.
However, when venturing into the world of acquisitions, understanding the intricacies of the approval process is paramount. Before proceeding with an acquisition, thorough familiarisation with all relevant legal documentation outlining future payment rights is essential. Let’s delve into what you need to know:
Aggregator, Dealer Group, or Franchise Approval
In the acquisition landscape, securing approval from your aggregator, dealer group, or franchise is often a prerequisite. This step is vital as it grants you the legal right to take ownership of the acquisition target. However, it’s essential to note that approval procedures can vary significantly depending on the entity involved. Trailblazer Finance can guide you through this process.
Restricted Approval
Approval may come with certain constraints. For example, some aggregators restrict acquisitions to their existing members, while specific mortgage managers may impose prerequisites such as specific guarantees and qualifications. Similarly, franchises typically require acquirers to become franchisees to access acquisition opportunities.
Failing to obtain the necessary approvals poses a significant risk, potentially resulting in the nullification of the acquisition and the loss of deposits or payments made.
Poorly executed acquisitions can spell disaster. Inadequate preparation and due diligence can devalue both the acquired asset and your existing business. Compliance issues further exacerbate the risks, potentially causing irreparable damage.
At Trailblazer Finance, we specialise in guiding clients through the acquisition process, ensuring optimal outcomes every step of the way. From conducting due diligence to negotiating agreements and securing financing, we provide comprehensive solutions tailored to your unique needs. With our expertise by your side, you can navigate the complexities of acquisitions with confidence and achieve your business objectives. Trust Trailblazer Finance to be your partner in success.
Eager to gain in-depth insights into the crucial elements of a successful acquisition? Download our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” crafted by our specialist funders.
AFG has announced a new outsourced trail book marketplace for brokers through an arrangement with specialist cashflow lender and Mergers & Acquisitions advisory firm, TrailBlazer Finance.
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Are you equipped to weather all seasons in 2021?
Congratulations – you survived the Covid-19 flash storm that engulfed 2020! But before the uncertainty and turbulence of 2020 dwindle into the recesses of our collective memory, stop to ask yourself what does the rest of 2021 hold for the mortgage and finance brokerage industry?
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The aggregation group has appointed a specialist lender, TrailBlazer Finance, to its asset finance panel, making more products available to its broker members.
Australian Finance Group (AFG) has welcomed trail book lender TrailBlazer Finance to its asset finance lender panel.
The addition will provide AFG brokers and their white-collar clients with access to the lender’s funding products and advice, which is specifically created for those with recurring revenue streams, such as brokers, financial planners, accountants, real estate managers and other cash flow businesses.
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We recently launched a new low repayment loan for mortgage brokers and financial planners. Designed to boost cashflow, the Balloon Booster is structured like a balloon loan and features lower monthly repayments and flexible end-of-term refinancing options, allowing the balloon to be paid out or refinanced into a two-year loan.
Importantly, the loan product allows brokers and planners to better manage cashflow and maximise working capital at a time when many small businesses are struggling with their short-term cashflow needs.
Jeff Zulman, Managing Director of TrailBlazer Finance commented, “We know from talking to our clients that right now many brokers and planners need a short-term cash boost to free up working capital as they navigate the evolving post-COVID-19 market.
The Balloon Booster is designed specifically for this purpose. It is a low repayment product, with repayments 50 per cent or lower than those of our standard loan product. This helps our SME clients manage cashflow when they need it most.”
The new loan product further strengthens the specialist lender’s offering to its broker and planning clients, with Mr Zulman adding, “TrailBlazer Finance is committed to delivering the best possible solutions for these white-collar professionals. We are proud to be able to provide a product which is tailored to the needs of our clients, and the industry more broadly at a time when others are tightening their credit criteria and raising rates.”
