Supportive, Cost-effective Start-up Equipment Loans

Yes. Sole traders, self-employed, ABN holders and other operating structures can apply for funding as a new operation. An ABN is essential but GST registration is not.

Interest rates on all commercial funding, both for newly formed and well-established organisations, are subject to lender assessment of the application. A range of factors are considered included the risk, security, amount being borrowed, ability of the operation to furnish the commitment and other aspects. Interest rates also vary with the different credit product options.

Yes. New enterprises may select what funding product will be the most suitable for their set-up and the machinery being acquired. The selection includes Chattel Mortgage, Leasing, CHP and Rent-to-Own.

Yes. ABN holders are eligible to apply for commercial funding for machinery acquisitions. Where no financials are available, ABN holders can seek No Doc options through specialist lenders and brokers.

Yes. All the tax benefits applicable to the credit product selected by a new operator can be realised when funding is settled. The tax deductions vary across the selection of credit products. With Leasing and Rent to Own the repayments are tax deductible. With Chattel Mortgage and CHP the deduction is realised through depreciation of the asset.

Yes. Yellow goods and wheeled goods can be funded for new enterprises through some lenders. Not all lenders provide funding for new businesses. Engaging with a broker may assist new businesses source appropriate lenders.

Yes. All assets for use in a commercial operation as ruled by the ATO, can be eligible for funding through commercial financing facilities. Credit can be available for both hardware and software. Lenders may approve the installation costs of the systems to be included in the funding.

Many small and newly started enterprises will be required to provide additional security against their funding. In some cases, lenders can approve a personal guarantee from the owner as suitable collateral.

The credit term approved for commercial funding for new enterprises is subject to individual lender guidelines. In general terms, a credit term of up to 84mhs/7yrs can be approved on machinery financing.

There are funding options for operators without financials through No Doc and Low Doc finance. This is available through primarily non-bank lenders and via brokers. It allows funding to be approved with very little or no financials or documentation.

For a new growers in the agricultural sector, funding for machines is available through some lenders. The product choices include Chattel Mortgage, Leasing, CHP and Rent to Own.

The repayments on a credit agreement are determined by the loan amount, loan term and the interest rate. To obtain a guide to what could be achieved, operators can use a finance calculator.

Yes. When approved for funding, new businesses are eligible to the features and benefits of the selected funding product. Chattel Mortgage and CHP have the option for a balloon. This is a percentage of the loan set aside for payment at the end of the term. With Leasing the concept is known as a residual.

The total amount of financing requested is subject to lender approval on all applications. No deposit funding allows for the full purchase price to be included in the finance and is available through banks and lenders.

No. Asset acquisition credit products have a fixed interest rate. The rate remains the same over the full term of the financing. The rate is not reviewed or changed as the operation grows or when interest rates in general change.