Asset Loans Targeted to Deliver ROI Objectives

Assets are physical goods which are for use in a commercial operation. They may take many forms such as plant, machinery and equipment.

Yes. Sole traders may apply for financing for machinery and equipment for their operation. An ABN is essential for commercial lending products but all sized operations may apply. All applications are subject to the criteria set by individual lenders.

Earthmoving machinery and other types of yellow and wheeled goods may be financed with a choice of products including Chattel Mortgage, Leasing, Rent to Own and CHP. Which is the best will be determined by the suitability of the features of benefits to the objectives of the operator.

All commercial funding products include tax deductible elements. The tax deductions vary with different products. With Leasing and Rent to Own the monthly payments are tax deductible. With Chattel Mortgage and CHP the goods are depreciated and the depreciated value is a tax deduction. Interest payments are all tax deductible.

Where an entire fleet or multiple machines are being acquired at the same time, operators may apply for a combined lending solution. This will be subject to lender criteria and approval.

Yes. IT equipment used for multiple purposes in operations can be acquired with commercial finance. This may include general business computers, computerised processing systems, security systems and other devices. The choice of financing product for the hardware and software may be subject to lender approval of software being suitable security for the funding.

Yes. The equipment and devices used in a medical, veterinary or dental practice may be acquired with commercial funding. The choice of which is the most suitable product will depend on the individual operational structure and the equipment.

Commercial funding may be used for a range of equipment required to set-up a new brewery. That may include the brewing equipment as well as the fitout and the equipment in the office side of the operation. Some new businesses may not meet the criteria of all lenders. They may seek specialist non-bank lenders and may seek assistance from a broker to source the appropriate lender.

Interest rates vary across the selection of commercial financing products. Chattel Mortgage and CHP tend to have the same rate, Leasing slightly higher and Rent to Own higher again. The rates advertised by lenders will typically be for new goods and good credit applicants. Rates can vary across the lending market and for applicants in different industries.

Rates offered in a quote can differ from the interest rate advertised by a lender. Each application is assessed on an individual basis when a lender determines the rate they will offer. This process leads to variations between actual offers and advertised lowest rates.

No. Being registered for GST is not an essential requirement for commercial finance but may be viewed favourably by some lenders. Applicants must hold an ABN.

Yes. Commercial funding is available for both new and used goods. The type of product suited to used goods may depend on the goods being accepted as suitable security by the lender. Where goods are not accepted as suitable collateral, operators may consider applying for Unsecured Finance.

Yes. Applications for funding can be submitted and approved prior to purchase for those planning to buy at auction. A description of the goods would be required to enable the lender to approve a suitable offer based on the age and condition of the goods. Approval would be given for a certain finance limit and the specific amount finalised post-purchase.

Terms on equipment financing can vary depending on the type of product, the amount requested and the goods being purchased. Terms of up to 84mths/7yrs can be achieved.

Operators can use an online calculator to obtain estimates for finance prior to application. The results obtained from an online tool are only estimates and intended for planning purposes only. Any offer received may vary from the results in the calculator.