Download Our Free Insiders Guide To Commercial Finance
Download Our Free Insiders Guide To Commercial Finance
Grow your business with the right asset finance
You want to take your business to the next level. So you want to invest in a new vehicle, machinery or equipment. But making sense of all the different finance options can be difficult. There’s a huge number of loan products available in Australia’s competitive – but crowded – finance marketplace.
Vehicle and equipment loans typically fall into four categories:
- Chattel mortgages – a business loan secured on the asset you purchase
- Commercial hire purchase (CHP) – the lender buys the asset on your behalf, you pay it off in instalments, and ownership transfers to you at the end of the hire purchase agreement
- Operating lease – the lender buys the asset on your behalf and rents it to your business over an agreed period
- Finance lease – the lender buys the asset on your behalf and rents it to your business over an agreed period, and possibly gives you the option to own the asset in full later
Each loan type has different pros and cons as well as tax implications.
That means you don’t just have to compare lenders and their different eligibility requirements. You also have to get your head around the different product types and what will work best with your business’ unique circumstances, tax needs and bottom line.
At Commercial Loans, our role is to give you the expert advice you need to make sense of it all. Our brokers then tap into their industry connections to find you a great deal that ticks all your boxes.
No hassle. No running around. No endless piles of paperwork. Just the right vehicle and equipment finance you need to grow your business. Job done.
Grow your business with the right asset finance
You want to take your business to the next level. So you want to invest in a new vehicle, machinery or equipment. But making sense of all the different finance options can be difficult. There’s a huge number of loan products available in Australia’s competitive – but crowded – finance marketplace.
Vehicle and equipment loans typically fall into four categories:
- Chattel mortgages – a business loan secured on the asset you purchase
- Commercial hire purchase (CHP) – the lender buys the asset on your behalf, you pay it off in instalments, and ownership transfers to you at the end of the hire purchase agreement
- Operating lease – the lender buys the asset on your behalf and rents it to your business over an agreed period
- Finance lease – the lender buys the asset on your behalf and rents it to your business over an agreed period, and possibly gives you the option to own the asset in full later
Each loan type has different pros and cons as well as tax implications.
That means you don’t just have to compare lenders and their different eligibility requirements. You also have to get your head around the different product types and what will work best with your business’ unique circumstances, tax needs and bottom line.
At Commercial Loans, our role is to give you the expert advice you need to make sense of it all. Our brokers then tap into their industry connections to find you a great deal that ticks all your boxes.
No hassle. No running around. No endless piles of paperwork. Just the right vehicle and equipment finance you need to grow your business. Job done.
Testimonials
What do our clients say about their experience?
“Amazing!! Superb customer service. Quick turnaround. Commercial Loans always go above and beyond, following through with everything they promise. Will definitely be a lifelong customer based on this experience.”
Alison K.
“What more can I say…. Professional, efficient, always looking out for the best interests of the client. Commercial Loans simply get the job done!”
John D.
“Due to the complex nature of our situation, I have had very disappointing experiences in the past. But dealing with Commercial Loans has been an absolute pleasure. They look outside the box and really listen to what funding requirements you have. We felt totally supported throughout the process. You should give them a try!”
Stuart P.
What’s the right vehicle or equipment finance for your business?
Buying a business asset comes with big decisions, particularly how you’re going to finance it. The right vehicle or equipment finance works with, not against, your business’ cash flow situation. You also need to consider whether you prefer to own the asset from the get-go, or whether you want the option to return or upgrade it.
So how do chattel mortgages, leases and commercial hire purchase (CHP) agreements stack up against each other?
Chattel mortgages
With a chattel mortgage, you own the asset from day one. That means you can claim back the GST on the purchase price, while also writing off interest payments and the depreciation on the asset itself.
Depending on the lender, you can tailor your repayment terms so they work with your business’ needs. For example, you can reduce your monthly repayments with a balloon or residual payment, freeing up your cash flow.
Finance leases
As the lender owns the asset, there is little risk to the lender should you default on the terms of your lease agreement. This means finance leases typically come with lower interest rates than other types of vehicle and equipment finance. You may also be able to claim tax deductions on your finance lease payments.
However, you will be financially liable for any damage or wear to the asset over your lease agreement.
Operating lease
Your business never owns the asset with an operating lease. Rather, it belongs to the lender throughout the term of your agreement. At the end of the lease, you simply return the asset. In practice, this means you’re mainly paying for the asset’s depreciation – so repayments are generally low. You may also be able to upgrade the asset during the lease period as well as roll all maintenance and servicing costs into one, easy-to-manage payment.
Commercial hire purchase
With a CHP loan, you hire the asset with the intent of purchasing it. Once you’ve paid off the purchase price and interest instalments, ownership of the asset automatically transfers to you. This can free up your cash flow as you don’t need to purchase the asset outright.
What’s the right finance option for your business?
There is no one-size-fits-all answer to this question, as every business is different. At Commercial Loans, we’ll go through all the available options with you, so you can be confident you’re making the right choice for your business.
Talk To The Commercial Loans Team Today
Email Address
admin@commercialloans.com.au
Call Us
1300 169 200