Important information

Please be aware of the following;

Effective Immediately Tuesday 6th March 2012 Credit License Cancellation Lodged By Us With ASIC

Ability Finance have elected to cease all credit activities covered by ASIC credit licensing for various reasons including but not limited to;

  1. Lender commission cuts over the past few years.
  2. Additional liability, workload and costs arising from National Credit Licensing
  3. Lender minimum volume restrictions which result in smaller brokers not being able to offer all options to customers.
  4. Regularly encountered inexperienced lender staff who are unaware of their own employers policies whose advice wastes both broker and customers time and resources.
  • As a blog style website there is only historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
  • Ability Finance, through choice, no longer represent any lenders who may be historically referred to within this website.
  • No information or content contained on this site should be relied on as being current.
  • No content contained within this site should be taken as advice in any way at all.

Should you feel there is any content that should be removed from this site please contact the webmaster.
By any chance you feel specific content is interpreted as offering any credit activities by us it is to be ignored, please report to the webmaster for removal or modification.
If you are legally entitled to engage in credit activities and would like to advertise on this site please contact the webmaster.
If you would like a website developed or even to purchase this site modified to your requirements please contact the webmaster.
Meanwhile we are working hard at creating a one stop shop for purchasing high quality spray painting equipment online including an extensive range of the best spray gun models we are able to offer at discounted prices everyday right across the complete range of available spray gun models. Online spray gun prices with old fashioned personal service levels.

Borrowing For Trust's

Borrowing via a trust 

Select banks and certain other lenders offer the option for investors to borrow funds through either a trust or a company.

Finance for a trust or a company is usually similar to finance for individuals provided the trust deeds, trust structure or the company structure allows for the entity to obtain finance that is secured by property.

Many investors have set up a trust to manage their incomes and investments via the trust. An accountant is the best person to discuss the suitability of a trust that may suit your specific situation and longer term goals.

Different types of trusts are in existence such as family trusts, discretionary trusts, investment trusts etc. The Taxation Institute of Australia has a Trust Structures Guide Online which provides comprehensive information on thirteen different trust structures. this guide a suggested application of each type of trust plus parties to the trust structure and issues relevant to the trust such as income taxation implications, capital gains tax implications, asset protection potential, succession planning and investors options. The main two trust structures that are discussed are the Class Discretionary Trust and the Partnership of Discretionary Trusts.

Investors who have set up a trust may have an option, provided the trust deed allows this, to apply for finance through the trust and purchase real estate investments in the trust entity entirely rather than in their own individual names.

A trust with full financials and tax returns available for at least the most recent two financial years could in effect apply for finance with many banks or lenders in its own right. Beneficiaries of a trust are part of the application and can further support an application with their own incomes if and where required. Provided the overall loan to value ratio is satisfactory applicants could possibly apply for a low documentation loan through the trust to purchase investment property within the trust.

An accountant can assist with advice in relation to setting up a trust or a company and advise if it may be beneficial for the trust to borrow and purchase real estate property.

A solicitor or conveyancer can advise on the ownership structure of properties purchased through a trust or company. Ability Finance can offer the contact details for several accountancy firms who are able to advise in these areas. It is commonly accepted that the general benefits of using a trust to purchase investment property could be things like asset protection, especially for self employed business owners, distribution of income from an investment and distribution of a capital gain from a sale of an investment.

Always seek independent and professional advice in relation to the viability of a trust or a company, purchasing of investments and property and taking on any loan or credit. An accountant or financial adviser is usually best place to obtain this type of advice.