Before You Commit

By Horace Hung

Good business or investment opportunities are unusual. But when they do appear, here are some points to consider before committing:

1. Do I have the right business structure for this new venture, and does it fit with my future plans?

2. Do I need finance and how long does it take to get it? With the current economic climate of rising interest rates and staff shortages, it may not be easy to obtain prompt finance approval. Start the process early.

3. Do I need a loan agreement? Even for business ventures with friends and acquaintances, it is best practice to formally document any loan. While EQ8 does not prepare loan agreements, we can refer you to one of our trusted lawyers.

4. Have I done proper due diligence? Sometimes offers look good on the surface but may not be as appealing on further investigation.

5. Is it commercially sound? Quite often, we hear stories of clients thinking about tax consequences before commerciality. In our many years of advising clients, our experience tells us that the investment should be commercially sound first and tax benefits should come second.

The information above is general in nature and does not take into account your particular circumstances. We invite you to talk to us before making any major business or investment decisions. Please feel free to call on +613 9066 0400