The Age --- Page: 1 : 6 March 2007 Original article by Simon Sharwood
ABIX Summary
Australian businesses frequently take on vendor finance because they are lazy. Businesses have been warned that alternative finance sources may have unexpected consequences. Some small business advisers say that many of these finance options are not offering the best interest rates or terms and that businesses can be in for years of unnecessary debt. Jonathan Karlovsky, of accountants PKF, says that operating leases can be some of the worst situations as the equipment must be returned at the conclusion of the lease. However, in the case of computers, they may contain years of valuable information. Vendor finance offers must be examined carefully before signing.
