Interested in interest?
As the end of the financial year fast approaches, many investors become focused on tax effective borrowing. This is where an Interest in Advance Loan becomes extremely popular.
Interest in Advance Loans are comparable to most Fixed Rate and Interest only investment loans. The main and most important point of difference is that borrowers can pay the next year’s interest on the loan in advance, and in some circumstances claim it as a tax deduction for that current year.
This means that come the end of the financial year, eligible investors can get part of their interest back in the form of a tax deduction.
Interest only loans suit investors who are eligible for tax deductions and wish to bring their tax deduction to an earlier financial year.
Interest in Advance loans are suitable for investors who have a large tax liability the one year, and not the next year. If you prepay your next year’s interest and claim it in this financial year, you will legally maximize the tax benefits of investing.
Another benefit of an Interest In Advance Loan is some lenders may offer a discounted interest rate because the interest is being paid upfront.
However, investors need to do their research and plan their strategy well. You need to have on-going cash flows and a savings plan in place to pay the fixed interest at a set time whether it is monthly, quarterly, or annually.
If you would like any further information on Interest in Advance Loans, please contact Samcol Finance on (07)5594 2724 or email Samantha on firstname.lastname@example.org