Business Finance

With access to a wide range of commercial and business loans, we can work with you to decide on the loan best suited for your situation. We will simplify the process for you by fast tracking your loan application and keeping you informed about its progress. We can also arrange equipment finance, asset finance, equipment leases, operating leases and chattel mortgages for any depreciable asset for business purposes.

In addition to sourcing the interest rate and terms available to best suit your needs, we also work with your advisers to ensure the structure is a perfect fit for you and your circumstances.

Solutions include the following:

Unlike overdrafts or lines of credit, business loans are designed to assist you with major investments in the future of your business including most capital purchases. There are many different types of business loans available in the market today, of which most will require the borrower to put up some form of security such as their business premises.

The most common distinction between loans is whether they are fixed or variable in nature. Terms will vary depending on the lender and the amount borrowed and can range from one year up to 30 years.

Contact us to learn more about your options including fixed rate, variable rate and split loans.

A consolidation loan occurs when you incorporate the car loan into your home loan, which may offer attractive monthly repayments. Disadvantages are that variable home loan rates may increase repayments. Considering that you are paying off the vehicle over a long period, there is often a very high cumulative interest, and you may still be paying for the vehicle long after you have replaced it.

An overdraft is a line of credit with your bank / finance provider, which allows you to make flexible payments so that you can pay off the entire debt as and when you have funds available. An overdraft generally attracts higher interest rates, especially if exceeding the overdraft limit, and may limit other borrowings. It is seen as more of a short-term option. The benefit of an overdraft is that it allows flexibility depending on your business requirements.

A personal / business car loan can be secured or unsecured. Throughout the life of the loan, you own the car and are required to make regular repayments. Depreciation and interest payments may be tax deductible. Disadvantages are that there is generally an upper limit on amounts that can be borrowed and establishment fees are likely. There are also higher interest rates likely on unsecured loans, and it may limit other borrowings.

Contact us to help you better understand all available business and commercial loans. We will sort through your financial situation and recommend which options are best suited to your needs.

Chattel Mortgages

A chattel mortgage is a loan for companies and businesses to purchase motor vehicles, trucks, earthmoving and industrial plant and professional equipment for business use. Security for the loan is a registered mortgage over the equipment financed.
Benefits include the following:
  • Flexible repayment options depending on your business requirements including monthly, quarterly, seasonal and annual.
  • Choice of paying a deposit or not – 100% finance may be available (including GST)
  • You own the goods / vehicle upfront and pay for them later – leaving valuable cash in the business
  • You can choose an option with a balloon payment at the end of the term to reduce repayments over the life of the loan
  • Fixed interest rates apply, providing a hedge against possible rate rises.
  • You pay no GST on instalments 

Commercial Hire Purchase (CHP)

A CHP is a contract in which the financier operates as owner of the vehicle and allows you (the hirer) to use the vehicle in return for regular payments. Unlike in a leasing arrangement, title passes to the hirer at the expiration of the term. A balloon payment is an option (within taxation guidelines) or the contract may be written down to a nil balance if desired.
Benefits are:
  • Fixed monthly finance charge
  • Business credit lines are not disturbed
  • Depreciation and interest content are often fully tax deductible – subject to Tax Office depreciation limits.
  • Working capital is preserved
  • No deposit is required
There may be reduced tax advantages with short-term contracts, and you will need to pay out the contract if changing vehicles. 

Novated Lease

A novated lease is a finance lease agreement between an individual (employee), his/her employer and a finance company. In this case, the employer makes monthly repayments on your behalf via a salary sacrifice program or car allowance.
Benefits for the employee:
  • Flexibility with the choice of vehicle to meet your business and personal needs
  • You can take the vehicle with you when you change jobs
  • Tax benefits as financing may be paid with pre-tax dollars (remembering there may be Fringe Benefits Tax to consider) 
Benefits for the employer include an easy way to add value to an employee’s remuneration package. The vehicle is the responsibility of the employee, so there are no costs to the employer associated with disposal of the vehicle should the employee leave. 

Operating Lease

An operating lease is a rental agreement available to businesses, allowing an employer to avoid the risks normally associated with ownership, including no residual value liability.
Benefits to the employer:
  • Lease payments may be fully tax deductible if the vehicle is used for legitimate business expenses – subject to Tax Office depreciation limits
  • Working capital is preserved
  • No deposit is required on the vehicle
  • Fixed monthly finance charge makes it easy to budget for the cost of the vehicle
  • All running costs associated with the vehicle may be included in a single monthly charge
  • Business credit lines are not disturbed 

Contact us for advice at no obligation to you. 
We look forward to helping you realise your dream purchases.

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