Prospa raises $25m to focus on Growth

GREG MOSHAL AND BEAU BERTOLI

Prospa, Australia’s leading online lender to small business, has secured $25 million in growth funding led by AirTree Ventures – one of Australia’s most successful tech-focused venture capital firm.

Prospa will use the funds to accelerate its market leadership: boosting technology, product expansion and distribution, ramping up talent acquisition and building a world-class brand.

Greg Moshal, Founder and joint CEO of Prospa (and fellow ex Durbanite!!) said continued interest from top technology investors like Airtree, and the scale of their investment, recognises the difficulties small businesses have in accessing finance, and will support Prospa in its growth phase.

“We’re driving a fundamental change in the way 2 million small business owners in Australia access finance." 

“We’ve now provided over 10,000 loans and put over $250m into the Australian small business economy. All the while maintaining our ability to wow our customers, which continues to be proven through a stellar customer satisfaction score of over 90%.

Why has Prospa attracted this funding?

AirTree Ventures’ managing partner, Craig Blair, said “Greg and Beau have built a world class team and are obsessing over how to solve customer problems in a better, faster way. They are exactly the kind of founders we want to partner with.”

“This is a coming of age of the fintech sector in Australia. Prospa is a real business solving a real problem, winning awards with tremendous customer and market feedback while achieving profitability from the very early days,” Mr Blair said.

Prospa passed $250 million in loan originations and has added a series of strategic partnerships with Westpac, Reckon and Mortgage Choice coming on board to offer Prospa’s small business loans to their customers.

Co-Founder and Joint CEO Beau Bertoli said “strong partnerships are key to Prospa’s rapid growth and future success.

“To reach more small business owners, we’ll continue to invest in partnerships with trusted brands who share our values of putting their small business customers first."

“Small businesses are the driving force of the Australian economy. We’ve solved a huge challenge of access to finance for them by building the best local lending platform, making it faster and easier to get a small business loan than it ever has been,” Bertoli said.

2013/14 Australian Federal Budget - how it affects me!

Last night the Budget delivered no real surprises after the majority of the proposed changes had been drip fed to the market in previous months.

Wayne Swan blamed a stubbornly high Australian dollar and lower commodity prices for a dramatic fall of some $17 billion in forecasted tax receipts, leading to an estimated budget deficit for 2012/13 of $18 billion... and that was why there wasn’t the $1.5b surplus promised....

He knew there was a high dollar and lower commodity prices a year ago.... why did he not make appropriate changes then? Or tell us then that there would not be a surplus then ? what a joke!!! I hate surprises!!
If I gave this excuse to my board... I would be fired on the spot!

What was the price of iron-ore  when he took over the reins  from Costello and what are they now? Costello had a surplus when Swan took over!

Key takeouts relevant to me


From a financial planning perspective

Great Article from our team at Ark total Wealth please feel free to contact them by clicking on their link
From a Financial Planning perspective, there have been a few changes in relation to superannaution and taxation which may have an impact on your personal situation. We have provided a brief summary on some fo the key changes.

• Superannuation

Cap on Tax Free Earnings - At the moment, any income in the pension phase is tax free. From the 1st of July 2014, the tax free portion will be capped at $100,000 per individual. Any earnings above this will incur a 15% tax. There is no change to the taxation of lump sum withdrawals, these will still be tax free.
There is however an exemption around the capital gains tax as this could cause many funds to exceed the $100,000 cap. For assets purchased prior to the 5th of April 2013, until the 1st of July 2024 the old tax system will apply (no tax in pension phase). This gives you ten years to structure your assets within the superannuation environment.

Refund of Excess Contributions - Current excess contributions are taxed at 46.5%. Excess contributions will now be taxed at your marginal tax rate as opposed to the 46.5%. In addition, excess contributions can be withdrawn from the fund.

Higher Concessional Caps - If you are aged over 60, from the 1st of July 2013 your concessional cap will increase from $25,000 to $35,000. From the 1st of July 2014, this will apply to anyone aged 50 and over. These amounts will be indexed.
Additional 15% tax for high income earners on concessional contributions - For those that earn more than $300,000, an additional 15% tax will be applied to concessional contributions. These contributions include superannuation guarantee and salary sacrifice Contributions. If you earn more than $300,000, you need to review your super contributions.

• Taxation/Cash Flow/Social Security

Cap on Self Education Expenses - There will be a cap of $2,000 on self education expenses that can be claimed in a Financial Year.

Replacement of Baby Bonus - This change has attracted the most attention. Essentially the baby bonus will be replaced by the Family Tax Benefit A.

Increase of 0.5% in Medicare Levy - Another of the well documented changes. The increase in the Medicare levy will be used to help fund DisabilityCare Australia.(.05% on 100k taxable income is $500 - well worth it to support disabled kids and education!!) 

Ending of discount of early repayment of HECS/HELP debt - From the 1st of January, there will be no discount for up-front and voluntary payments of HECS and HELP debt

Given the uncertainty around which changes will be implemented, it is very much a wait and see approach for everyone. If you have any questions, please don't hesitate to contact on of our Advisors.



From an Innovation Perspective 

Research and development

More timely R&D credits for smaller business

Quarterly payments of the 45% refundable tax offset from 1 January 2014for companies having a turnover of less than $20 million. This measure is designed to provide a cash flow benefit to SME’s as they will not need to wait until lodgement of their income tax return for their refundable R&D tax offset. There are a number of tests in the draft legislation that potentially make it difficult for those companies, at which the assistance is targeted, to actually qualify for the payments. BSI have made submissions to treasury in this regard.

Denying Companies with turnover of $20b or more to access R&D Incentives encouraging R&D for conglomerates to go offshore!

This measure was announced in February and and is expected to affect 20 corporate groups including large banks, miners, refiners, retailers and telcos. Whilst the budgeted savings may be significant ($1.1 billion over the forward estimates), the potential cost to the economy from these corporates potentially shifting R&D activities and other operations offshore could be massive!

Speak to one of our R&D Gurus to see how they can help you maximise your incentives

At its meeting the Reserve Bank Board announced it was leaving the cash rate unchanged at 3.0%.

Whilst the official rate is unchanged, we're watching closely what the banks do with their rates, as some of Australia's biggest lenders have decided to make changes to their rates regardless of official interest rate moves by the RBA.

Please get in touch if you would like to discuss recent rate movements and if you have time, let's conduct a quick review of your finance options.

Regards, Danny Luu Liquidity Finance Pty Ltd Mailing address Suite 701, Level 7, 14 Martin Place Sydney NSW 2000

Contact details
Tel: 02 9290 2777 | Mob: 0414 717 398| Fax: 02 9262 5788
Email: danny.luu@liquidityfinance.com.au
Web: www.liquidityfinance.com.au

Things you need to look at when thinking of retirement

In this Ark Informer, the Ark team look at the challenging issues facing pre-retirees. They will be hosting an educational seminar on the Tuesday 19th March  at 12:30pm and the Wednesday 20th at 6pm in March to discuss the issues and possible solutions. Click those dates if you would like to attend. I hope to see you there. If you cannot make the seminar, or you are based outside of Sydney, and you would like a copy of our retirement ebook, please click here and type "ebook" in the message box, and the ebook and notes from the seminar will be sent to you after the event.

Issue No. 05 - Retirement Planning Understanding your retirement options The concept of retirement has changed considerably over the past decade. No longer is age 65 the standard retirement age. Employers are becoming more flexible and allowing employees to gradually wind down their working hours into retirement. To compliment this, superannuation laws have changed that now allow you to access a portion of your superannuation at age 55. Regardless of when you want to retire, there are two important questions that still need to be answered; - How much income do you need to live? - How much assets is enough to fund your lifestyle? Lifestyle is a personal decision, what might be standard for you may be luxury to another. The Seminar Given the dilemna above, we will be hosting a seminar that focuses on the following; - How much is enough for retirement? - How long do you need to plan for? - How you can use your super now to benefit your retirement? - How to reduce tax and boost your retirement benefits? - How to qualify for the Age Pension? Our expert advisors will answer each of the above questions and there will be sufficient time for questions. The seminar is designed to be educational and best of all it is complimentary. The Dilemna How much do you need to live? To determine this, you need to analyse your current expenses. An effecient way to do this is to separate your living requirements into fixed and discretionary. This then creates a baseline of what you need to survive and what is left over for the descretionary spending. What value of assets do you need to maintain the lifestyle above? In an ideal world, you would have enough assets invested to provide you with a passive income to support your lifestyle. This ensures you never run out of money for you retirement.  Unfortunately, this is not the case for everyone. This means you need to implement a strategy over time that will help you get the most out of what you have for retirement. This can include some of the strategies listed below. What strategies can you implement? It is never to early to start planning for your retirement. We have listed some strategies that you can implement before you retire; - Additional contributions to super - Self Managed Superannuation Funds (including using leverage) - Changing the Asset Allocation within your existing super fund - Changing assets to qualify for the Age Pension - Tax reduction Each separate strategy will play a pivotal role in helping you achieve your retirement dreams. If you are thinking of retiring, or you just want to learn more about what options there are in retirement feel free to come along to our seminar on the 19th and 20th of March. If you cannot make the seminar, or you are based outside of Sydney, and you would like a copy of our retirement ebook, pleaseclick here and type "ebook" in the message box.  We will send you the ebook and notes from the seminar after the event. Regards, The Ark Total Wealth Team	March 2013 Seminar Click on the dates below  to register for relevant seminars Tue 19th March @ 12:30pm Wed 20th March @ 6pm Where: Level 7, 14 Martin Place, Sydney Light snacks and refreshments will be provided. Contact Follow us on:
AFSL: 239445 Ark Total Wealth Level 7, 14 Martin Place Sydney NSW 2000 P: 02 9262 3333 E: info@arktotalwealth.com.au

6 gems you need to sell your home

We have recently sold our house in St Ives after having lived in the area for 20 years.... here are some gems that were given to us when we decided to sell....


1. Price Your Home Right.

Understand the market before you speak to agents. ( get info from RP data from your financial planner or mortgage broker). You get details of every sale in your area over the past 3 years, together with an assessment of the value of your house. Feel free to all or email me, and we will get you that data with pleasure (cal 02 92623333, email ikaye@bsi.com.au)

Remember price is everything. Match your price with similar house price sales in area. A quick sale is a good sale.

2.Find the right agent

The right agent can make a massive difference. Selecting
the wrong agent can be very expensive. Do your homework, get referrals, and get them to pitch on selling your home...what price they expect to get etc . Get someone who knows your area..

3. Use all channels For Marketing Your Home.
Internet, advertising, neighbourhood campaign, database plan, signage, best photography, editorial, video, floor plan, open houses, hot buyer preview and the absolute best agent working for you.

Hilary Lazarus was our agent.... She was awesome!

4. Feng Shwi your house

Buyers are looking for a home that they connect with and feel like they want to live there and this connection comes from style and creating a WOW. Do the feng shwi thing.

5. The 30 Day Rule.

Your best buyers will come along in the first 30 days. Our buyer was the first ones that saw our house!
They say "the first offer is usually the best one"

6. Just Relax.
Once you have Feng shwied, found the right agent and worked with her on a marketing campaign - chill! Relax and work closely with your agent and everything will work out just fine.

You only need one buyer to buy your home!

Ps. buy 101 ways you can improve the value of your house by Dolf deroos. Email me on
ikaye@bsi.com.au and I will send you a copy for $6.

Ark Informer January 13

Welcome to the first Ark Informer of 2013. The Ark Team are holding a really useful 30 minute webinar on the "top 5 Wealth Tips for 2013" on Wed 23rd Jan @ 6pm and Thurs 24th Jan @ 12:30pm. See below for more details. (Click on dates to register). Join Me on LinkedIn  http://au.linkedin.com/in/ivankayebsi ( I have over 3,500 contacts that I would gladly connect you with!)

January 2013 - A Webinar to kickstart 2013 Welcome to the first of our education webinars for 2013. In this webinar we unveil 5 effective strategies to help you manage and build your wealth in 2013.  In 30 minutes, we will cover the following; 1. Simple tips to help reduce your individual tax 2. A review of Home Loan Structures and a look at what interest rate you should be paying 3. An analysis of where you should invest your super and a look at some of the best funds from 2012 4. Where to put your excess savings? Looking at alternatives to cash.  5. How to organise and manage your finances easily These top 5 tips sound very generic and simple... and they are. They are not designed to be high risk or complex but to help you along your wealth journey.  At the end of the webinar, all participants will receive a copy of our new e-book 'Wealth Planning for Young Accumulators'.  If you can't make the allocated times, just 'click for an advisor' on the right and we can send you the relevant information. Regards, The ARK Total Wealth Team  www.arktotalwealth.com.au | info@arktotalwealth.com.au Webinars Top 5 Wealth tips for 2013 Wed 23rd Jan @ 6pm Thurs 24th Jan @ 12:30pm Duration: 30mins

NOW COULD BE THE TIME TO CHANGE LENDER!

This is a summary of an article that Paul Clitheroe wrote in the North Shore Times today  - Paul is the chief commentator of Money Magazine

The RBA's official rate is now 3.35% - a 3 year low - have your interest rates on your mortgage reduced?

3 years ago, the average rate was 5.7%, it is now 6.35% (hmmmm) -  with a little bit of shopping around, you may be able to secure a lower rate.

Ratecity - the online comparison site shows a difference between the lowest and highest rate as 1.8%. On a $300,000 loan, this could mean an extra $355 per month (money that I would rather have in my pocket , thank you very much!)

With so much variation, it makes sense to see how your loan shapes up. Bear in mind that refinancing might come with additional costs. These additional costs might offset potential savings.

That's where a Liquidity Broker comes in handy!!

Fill out the attached form, and we will do the numbers and work out whether you have a great deal, or you could do better.

 

I want to Invest - but how do I start?

A common misconception is that you need a lot of money to make money. If you have wads of cash it certainly helps but everyone needs to start somewhere. Unless your lucky (or unlucky in same cases but I won’t name names) to receive a capital injection from your parents, you will most likely need to start from scratch.

The key to building wealth, and the major factor that determines how quickly you grow it is .... click here to find out more!!

Exclusive Property Release: Glebe - Heritage Conversion Townhouses

Our Financial Planning Firm, Ark Total Wealth, is proud to bring to market 11 townhouses built incorporating the existing facade of the Old Glebe Townhall.  A webinar will be held on Monday 3 September 2012 @ 5:30pm For more information, see below, or feel free to contact an Ark Adviser

Exclusive Property Release:  Glebe - Heritage Conversion Townhouses Ark Total Wealth are pleased to bring to market, a boutique development of 11 townhouses that will be built incorporating the existing facade of the old Glebe Town Hall. Seconds away from the restaurants, shops and small bars of cosmopolitan Glebe Point Rd, the development sits directly across the road from a large park and is serviced by buses at its door step ferrying you directly into the city, or Glebe light rail station that is only 300 meters away. Locations simply do not get more blue-chip than this! The townhouses themselves are large internally at 107 sqm, and consist of 2 bedrooms , 2 bathrooms and a dedicated media room/ office, perfect for DINKS, or those with a small family. Rental yields are expected to be between 5.0% - 5.7% according to local agents appraisals, and the heritage conversion should add a funky element to their appeal among tenants or future purchasers. Ark Total Wealth is conducting a Webinar release event on Monday 3rd of September at 5:30pm, where we will provide a run down of the development, research on the area as well as exploring the individual floor plans. Demand is expected to be high and given the boutique size of the development we do not expect the individual townhouses to be available for very long. If you are unable to attend or wish to review the information at hand before the Webinar please contact us and we will provide you with the development particulars. We look forward to seeing you there!

3 Year Interest rates at under 5.95%

Interest rates are at their lowest point since the global financial crisis (GFC) as competition between lenders for a slice of the fixed home loan market continues to heat up.

Most lenders have dropped their three-year fixed loan rates since July  by up to 9 basis points, averaging 5.9%.

While variable home loans are still the popular choice fixed rates should be looked at over the coming year, taking advantage of this aberration.

Fixed home loans finance in June accounted for just over 10 per cent of all mortgages (Australian Bureau of Statistics,). That represents an increase from 6.9 per cent in the same period last year. “There’s uncertainty about which direction official rates will move, and we expect to see more borrowers taking up fixed home loans.” says Sandra Crossland of Liquidity Finance

Pay off your Mortgage in 6 years and save $300k + in interest repayments!

Mike and Jenny Jones (DINK’s) (Double Income no Kids) came to Liquidity Finance to see how they could pay off their home loan sooner.  They both worked hard, had relatively high disposable incomes, but for some reason always barely came out, without much to show at the end of each month!
“It seems that the more we earn, the more we spend!” said Jenny.

Sandra (Australia’s premier mortgage broker at Liquidity Finance) , together with Myles (a financial planner with Ark Total Wealth), went through a planning exercise with them, developed a strategy enabling them to pay off their home loan in 6 years, saving 19 years off their home loan payments and $306,241.26 in interest payments (non-deductable or “bad- debt”) without taking any risks.

A few key strategies enabled this to happen:-
1. A mortgage refinance from $400k to $430k paying off the credit card debt and car loans.
2. Interest rate reduction from 6.75% to 5.82%
3. On refinancing, the first repayment was made as soon as the loan was settled (saving $9,000 interest and 4 months off the loan)
4. Paying fortnightly instead of monthly… making 2 extra payments per annum, saving $86,000 and 4 years off the mortgage.
5. Expenses being paid by credit card (getting frequent flyer points for holidays) and your salary going to an offset account (reducing your loan balance when it comes to calculating your interest owed.) A direct debit facility was set up to pay their credit cards in full at the end of each month.
6. A budgeting exercise making Mike and Jenny aware on their day to day expenditure. A little “tightening of the belt” resulted in them being debt frree in 6 years!!

Mike and Jenny now have substantial equity in their home. “This has come in handy, and we are now focussing on building our wealth with a strong capital base.” Thanks Sandra and Myles!

Click  to see Liquidity's loan calculators

Self Managed Super Fund (SMSF) Strategy Series

Due to the interest and growth of Self Managed Superfunds, The team at Ark Total Wealth will be holding a comprehensive SMSF Strategy series covering all aspects of Self Managed Super Funds.
If you are looking for tax efficient, alternative strategies for your super (including investing in Property), or you are just interested to learn more, register on the links below.

Self Managed Super Fund (SMSF) Strategy Series

Self managed super funds (SMSF's) are now one of the largest and fastest growing segments of the super industry having an annualised growth rate of 20%. Education amongst members as to what they can do with their SMSF's and how they can most effectively use them is patchy however, and many are simply not unlocking their SMSF's full potential. The Ark SMSF Strategy series has been created to educate and empower SMSF directors/trustees to get the most out of their retirement funds, increase their wealth and save tax.Webinars will be held on the following topics: How to buy property within a SMSF Tuesday 31st July 6pm Retirement Strategies within an SMSF Thursday 2nd August 6pm Direct Equities & Managed Funds within an SMSF Tuesday 7th August 6pm Personal Insurance inside your SMSF Thursday 9th August 6pm You can click on any of the hyperlinks above to register your attendance.  You will also get the opportunity during the Webinar to ask direct questions  to a qualified Financial Adviser regarding the topic being presented. If you are unable to attend any of the above, and would like to receive a copy of the webinar, click here to register your details, and under "messages" type "SMSF"

At the Webinar

At the webinars, we will cover off the following; Property in Super The structure, benefits, cash flow and risks of purchasing property within your super Retirement Strategies How to effectively drawdown from your superannuation and tax effective ways to increase your balance  Direct Equities and Managed Funds How to structure an investment portfolio including direct equities, alternative investments and the effective use of franking credits  Personal Insurance How to structure your insurance effectivly and a review of the different product providers At the end of each webinar, we will email everyone a complimentary copy of our e-book and our discounted price list for SMSF Setups for webinar attendees.  Regards, The Ark Total Wealth Team

Get a Quote from Liquidity Finance

Property and SMSFs