Finance solutions for all sizes
Personal Use Finance Options
A personal loan is when you borrow funds of a specific amount from a lender and then repay the debt with interest in equal payments over an agreed term from 2-7 years. Personal loans are usually a cheaper option then credit cards if you stick to the repayment schedule. Some of the personal loan options allow extra repayments and can lower the over all cost of the loan. There are two main types of personal loans Secured and unsecured.
A consumer loan is used to fund the purchase a car or recreational asset and paid off over a loan term between 1-7 years. The asset is used as security against the loan. The loans are generally taken when the asset is used for private non business use. The asset is used as a security against the loan and at the end of the arrangement if all payments have been met you own the asset in full. Clients may be eligible for a residual value to lower the monthly repayments. It is the borrowers responsibility to pay any residual values at the end of the finance arrangement.
Personal and Business Finance Solutions
Business Use Finance Options
A chattel mortgage is a popular option used by both businesses and individuals who use their asset for predominate business use 51% or more. One of the reasons a chattel mortgage is an attractive option is because you own the asset from the very start. The loan is secured by the asset itself. This loan type gives you some flexibility to cater for your needs with a balloon option to reduce the monthly payment as well as the option of having a deposit up front to reduce your amount financed.
If you or your company make annual motor vehicle claims, a chattel mortgage allows you to claim tax deductions and GST credits if you’re GST registered, significantly reducing your running costs.
A finance lease is an option where the lender purchases the asset and then leases it to a business usually on a monthly lease rental arrangement. Businesses usually like this option when they don’t want to tie down their capital towards a vehicle or equipment. Although the lender owns the asset the borrower bears the risk of disposal once the lease is up. There is always a residual value. The Australian taxation office sets the size depending on the loan term and asset use.
Rent to own
A commercial hire purchase allows you/your business to hire an asset and continue to make payments until the asset is paid off. Once it has been paid off the asset’s title is transferred to your company name. There is some flexibility in regards to the size of the balloon and the ability to place a deposit.