DEBT MANAGEMENT

Snowgum Financial Services provides debt management services, specialising on more sophisticated debt structuring solutions (like use of a ‘debt facility’), although we are available to consider all loan structures as required.

A ‘debt facility’ is a specific form of loan structure that allows an individual and their associated entities to bundle multiple assets and investments as facility security in order to streamline and consolidate access to additional capital.

Debt facilities have a number of advantages and disadvantages over other types of loan structures. They act as a cash flow hub, greatly increasing the efficiency with which surplus cash flow is utilised to reduce debt. They also provide enhanced flexibility to access additional equity, often secured against private assets, in a tax effective manner. This is facilitated through the utilisation of multiple lines of credit that can be siloed according to their funding purpose. As the utilisation of a debt facility often involves securing investments against a primary asset like the family home, it may not be suitable for all people.

Ongoing management of a debt facility facilitates a similar service to that provided by a private banker, albeit without the risk of product bias. Snowgum Financial Services does not advise on standard mortgage structuring. We are able to recommend reliable independent mortgage brokers or work closely with your choice of mortgage broker for more standard mortgage structuring.