buying tips

Cost-effective Luxury Vehicle Finance for Cars of the Year

Business Finance Australia assists businesses to acquire high-end vehicles as judged the cars of the year, with cost-effective luxury vehicle finance. While the popularity of all types of SUVs continues to grow, the demand for the traditional style and elegance of a luxury sedan remains strong. Especially with many business owners and astute private buyers. Buyers that appreciate the attention to detail, exquisite engineering and the personal sense of achievement and satisfaction of owning and driving a luxury vehicle. But with many businesses and individuals dealing with the challenges presented by the current inflationary pressures, the finance for that new luxury vehicle needs to be cost-effective and affordable. We cover off on how we can deliver on that requirement after we advise on the latest award winners in Drive’s Car of the Year luxury segment. Car of the Year Medium Luxury Category The expert team at Drive has been conducting the annual awards and announcing the winners in over 20... Read More Caret Right

Upgrade on back of good numbers for agri and aquaculture – get approved for cheaper machinery finance

Producers looking to upgrade as a result of the good results and outlook from ABARES can source cheaper machinery finance through Business Finance Australia. The good numbers were announced by ABARES – the Australian Bureau of Agricultural and Resource Economics and Sciences at a conference in Canberra on 7 March and include record level forecasts for 2022/23 in some areas. The reports and snapshots show continued strong growth in agriculture and although income for broadacre farms is projected to decrease this financial year, it is still well beyond the 10 year average. For fisheries and aquaculture the forecast for 2022/23 is also strong with an 8% increase expected. One of the reasons for the good growth in some areas is given as operators investing in productivity. Machinery and equipment manufacturers focus heavily on including features in new models which will generate improved productivity, reduced costs and increase profitability. Review this summary of the ABARES announcements and our finance update and... Read More Caret Right

Considering new commercial loans? Review latest inflation and economic figures for guidance

Reviewing inflation and economic activity data may provide guidance as to the potential business outlook to assist in making decisions on commercial loans. Deciding when is the best time to proceed with major acquisitions with finance – trucks, equipment, machinery, can be guided by an understanding of the outlook for the specific industry sector or the wider economy. What’s happening with inflation in the current economic climate is of particular significance. The RBA is continuing with raising the cash rate to bring inflation down to its target of 2-3%. Changes in inflation may provide indications of what the next RBA decision may be. The timing of securing commercial loans may mean the difference in a higher or lower interest rate. A difference which may be significant in the effect of cash flow over the term of the finance. While it may sound like quite an involved and complex process to study statistics on economic activity, it doesn’t have to be to... Read More Caret Right

Secure equipment finance before next construction shows

Operators can get equipment finance approved with Business Finance pre-event in preparation to purchase at upcoming construction machinery expos and auctions. Two major events are coming up in April and May which offer ideal opportunities to see the latest machinery and technology in for earthmoving, infrastructure, construction and civil construction sectors. Opportunities to inspect many machines in the one place, save time and most importantly to place orders to expedite delivery. Opportunities which can be optimised when the finance has already been secured. These upcoming  events – National Diesel, Dirt and Turf Expo and the Heavy Equipment and Machinery Show, also include live auctions of used equipment by Pickles Auctions. In order to bid, operators will want be confident that they have been approved for finance. We assist operators to have that confidence, save time and secure cheaper machinery and equipment finance ahead of making their final decisions and purchases. It is a smart way to go and can deliver... Read More Caret Right

Sales of trucks continue to set records. Get your purchase underway with a quote for cheaper heavy vehicle finance

Business Finance Australia supports businesses to boost their operation with investment in new trucks with heavy vehicle finance at cheaper interest rates. Based on the recent truck sales figures as released by the Truck Industry Council, many operators are taking advantage of tax benefits and improving business conditions to upgrade their vehicles. 2022 ended with record-breaking truck sales results and many may have expected somewhat of a lull to follow such a busy selling period. But clearly, owners and operators had different ideas and were out in force in January to take delivery of new vehicles. The timing is of course spot on. As we and many others in the finance sector have been alluding to, further interest rate hikes are highly likely from the RBA  in the early part of this year. The release of the annual inflation figures last month by the Australian Bureau of Statistics revealed that inflationary pressures were still present in the Australian economy. Pressures... Read More Caret Right

Prospects for interest rates with latest inflation increase

Prospects for more interest rates rises were possibly strengthened with the latest November CPI data from the ABS revealing continuing inflationary pressures. The CPI data for the year to November was published by the Australian Bureau of Statistics (ABS) last week and shows the October drop in inflation was short-lived. In November inflation rose again by 0.4% to bring the current rate back to the September figure of 7.3%. These newest figures are in line with the outlook from the Reserve Bank of Australia (RBA) for inflation to edge even higher. The Board’s outlook was upped from the previous 7.75% to a peak in 2022 of 8%. The newest data covers November so the December figures are awaited to see what the annual rate is and if it is a peak. The December Quarter CPI data along with the monthly figures for December are due to be published by the ABS on 25th January. The timing is proving a busy... Read More Caret Right

Benefits of office upgrade with cost-effective equipment finance

Refurbishing and refitting offices and working environments with cost-effective effective finance may deliver significant benefits and address many challenges. The cost-benefit analysis of any investment by a business needs to be carried out to be confident of a positive outcome. Investing in  upgrading the workspace with new equipment, refit or refurbishment may seem less important than other acquisitions. Investing in new plant, machinery and operating equipment which can deliver a direct and immediate outcome for the business may be seem a lot more important. But in the current economic environment, there are a number of arguments in favour of paying more attention to where employees spend their work days and where customers visit the premises. Of course, all major business expenditure can come down to the cost. We provide access to cheaper, more cost-effective equipment finance to facilitate upgrade of offices, work spaces and other areas of the business. We provide a range of business finance options to cover the... Read More Caret Right

Commercial Loans: Options for NY Finance Requirements

Business Finance Australia offers cheaper interest rates on commercial loans and asset finance to meet the finance requirements for businesses to grow in 2023. In order to capture and capitalise on emerging prospects, to strengthen the company’s existing position and to be well-placed to move on growth plans, cost-effective finance can be essential. Commercial loans may be critical for many businesses to deal with the ongoing economic challenges and stay ahead of the competition in bidding for lucrative tenders and contracts. Many asset investment decisions may have been deferred due to uncertainties in the economic outlook and especially as a result of the tight labour conditions. But ageing machinery, inefficient technology and equipment which continues to pressure cash flow with ongoing repair costs may be holding the business back from achieving its true potential. Making that investment in new assets with cost-effective commercial loans may be the solution required. Benefits of Investing in New Assets Some of the key terms... Read More Caret Right

Easing cash flow with Insurance Premium Finance

Business Finance assists businesses facing large annual insurance premiums with Insurance Premium Finance to manage expenses and ease pressure on cash flow. A finance product which may not be widely known about but can be extremely helpful for businesses as premiums on some policies rise and when businesses are looking to better manage large outgoings. The need for Insurance Premium Funding can arise due to a number of circumstances. For example, the last few years have provide great opportunities for businesses to upgrade assets with plant, machinery and equipment acquisitions. This emanated from the historic low interest rates which were available from November 2020 to May 2022 and the generous tax measures. Measures such as Instant Asset Write-off and temporary full expensing which were introduced as part of stimulus measures and provided eligible businesses with the opportunity to write-off the value of new assets in the year of acquisitions. Many businesses seized on these opportunities to upgrade and replace vehicles... Read More Caret Right

When rates rise, will low doc finance conditions tighten?

With interest rates currently being on the rise businesses requiring low doc finance may be concerned around any tightening of conditions with higher rates. This is a specialist type of business finance, not as widely available as finance for fully documented applications and can include special conditions as requested by individual lenders. Cost-effective rates can apply but all applications are assessed individually. It can be, in simple terms, harder to get than finance for established businesses. Due to these specific features and factors, it would be only natural that in the light of the recent and ongoing RBA rate hikes, that some businesses requiring this type of finance may be concerned. Concern may exit can exist around whether this type of finance is harder to get, will attract premium interest rates and/or whether tighter and restrictive conditions may apply. We cover off on what is involved with Low Doc Business Finance, what loans are available, what business should and may... Read More Caret Right

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Our Lenders

Trusted by 60+ lenders Australia-wide

Westpac
Liberty
Automotive Financial Services
Macquarie
Finance One
Commonwealth Bank
Pepper Money
Morris
National Australia Bank
RACV
Get Capital
Prospa
Grow
Selfco Leasing
Scottish Pacific

FAQs
Business Finance FAQs

Yes, subject to the specific guidelines of individual brokers. Many brokers will offer services to all types and sizes of commercial set-ups while some may specialise in working for only some types of operations. Some brokers may also specialise in certain industry sectors or with specific financial products.

Commercial loans all offer tax deductible elements. These vary with the different products including Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. Interest payments are all tax deductible. With Leasing and Rent to Own the repayments are tax deductible. With Chattel Mortgage a tax benefit is realised through depreciation.

The interest rates vary with the different funding products. Rates will change across the market with changes in the cash rate by the Reserve Bank. Rates will differ depending on the individual application and credit rating. Rates can vary for equipment in different industries. Credit providers will advertise their best rate for good credit rating applicants.

Yes. Having a current ABN is an essential requirement to be eligible for commercial funding products. Additional documentation on the financials of the operation and other details will be requested as part of the application process. If not all documents are available, ABN holders may seek No Doc or Low Doc options.

The same products apply across all industries and types of operations. But the funding offers can vary across different industry sectors for some credit products. This may occur with equipment and machinery in particular. Interest rates on equipment funding may be different from one industry to another. This may be due to risk assessment of the sector or the individual guidelines of a particular lender. Vehicle funding interest rates would be less subject to industry variations.

The type of credit product best suited to a commercial enterprise will depend on:- accounting method used; balance sheet approach; approach to tax; and financial objectives. The most popular options are Vehicle Leasing and Chattel Mortgage. Operators are advised to discuss choice of product for suitability with their accountant.

Cash flow support may be sought through an Overdraft Facility or a Secured or Unsecured Funding Option. All may be sought to support an operation with ongoing expenses to support cash flow.

New start-ups with an ABN are eligible to apply for all types of commercial loans. As most will not have all the documents for the application, they may seek No Doc and Low Doc options through specialist providers and brokers. Funding can be sought for vehicles, trucks, equipment and other purposes.

To be eligible for commercial loan, applicants must hold an ABN and identification are essential requirements. GST registration is not essential. A selection of documentation, docs, is requested. This may include tax returns, BAS returns, trading figures, bank statements, balance sheets and annual accounts.

Refinancing may be considered for many types of commercial funding arrangements. These may include asset acquisition funding, overdrafts as well as general secured and unsecured arrangements. Refinancing may be sought for a range of purposes including to achieve a lower interest rate, restructure repayment schedule or as part of a business-wide review of financials.

In general terms, any equipment which is for use in a commercial operation may be eligible for commercial funding. The ATO sets out eligibility for tax deductible asset acquisitions. The type of equipment will vary depending on the industry. It can include heavy machinery and equipment right through to general equipment such as computers, IT and photocopiers. Lenders may have their own guidelines as to what equipment they will fund.

Commercial financing is available through major and second tier banks and a wide range of non-bank lenders. Brokers offer services to assist operators to source funding to suit their requirements.

Rates are offered following an assessment of the application. The rate will be based on the credit rating of the applicant, the amount being applied for, aspects of the goods or purpose of the funding and other aspects. Rates offered vary across the lending market and are subject to the individual guidelines of the credit provider. Changes to monetary policy by the Reserve Bank can impact the interest rates market.

Features and structure of commercial loans should be assessed in relation to the accounting methods and objectives of the company. Consulting with an accountant can assist with this process. The best option is the one that suits the individual objectives and goals.

No. ABN holders and sole traders that are not incorporated are still eligible for commercial loans. Some lenders will have guidelines around application approvals. Small enterprises may seek a credit provider that accepts applications from their type of operation or seek assistance from a broker.