'Finance Updates'

THE financial crisis triggered by the collapse in US sub-prime lending is contributing to Australia’s housing shortage, with builders claiming they are unableto obtain finance for new developments.

Master Builders Australia chief executive Wilhelm Harnisch said many builders were being turned away by lenders, which meant fewer homes were being built.

“Even some of our biggest building members, despite having been major clients of the big banks for many years, are now being told there is just not enough money to go around,” he said. “But the impact will be most pronounced for smaller operators and it means some development will not proceed or will be substantially delayed.”

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…said John Symond, Managing Director Aussie Home Loans, to The Weekend Australian. 20 September 2008.

“The major lenders still have low-doc loans in their suite of products but it’s more for window-dressing because trying to get a loan approved is now virtually impossible…Our people won’t even go there because it’s a waste of time. This is the death of the low-doc loan.”

We have received many enquiries from stressed members after reading the above article in the newspaper on the weekend. Mr Symond’s comments may be the case for many brokers and lenders, but Chocolate Money still has access to many low documentation loans due to its focus and experience within the building industry.

Therefore, I implore everyone who is unable to verify their income (or currently has a low documentation loan) to take the following steps:

1. Contact Chocolate Money to discuss your current and future financial requirements and lending structure;
2. Plan your personal, commercial and business lending needs for the next couple of years with your Chocolate Money Lending Consultant;
3. Get your financial matters up to date with your accountant;
4. Do not approach the banks directly for a loan (speak to us first); and,
5. Do not risk using an inexperienced broker.

No one knows how long the financial uncertainty will last, so do not take any chances – consult with the specialist team at Chocolate Money for lending advice.

Yours Sincerely,

Harry Pontikis

Director

Chocolate Money

1300 137 539

0411 258 058

harry@chocolatemoney.com.au

The global credit crunch is effecting many small business in Australia. It’s getting harder to access money and larger companies are delaying their payments to smaller suppliers, causing cash flow issues.

Rather than risk ‘running out of money’ or needing to refinance your entire property debt to access equity, there are other options available through Chocolate Money and your existing lenders.

If you need access to a smaller amount of money for your business these are some options we can help you with:

• A Low Document Small Business loan / overdraft - only require 3 months business bank statements and an ABN which has been registered for 2 years.
• Attach a short term loan as a second mortgage on your existing mortgage.
• Access any equity from your property without changing loans or lender.
• Borrow on invoices which are owed to you.

Call us to help you finance small cash flow shortfalls easily and inexpensively.

1300 137 539