Frequently asked questions
Business Finance FAQ’s

Find answers to popular questions below. Some of the most frequently asked questions in this area include topics such as cash flow management, financial planning, budgeting, financing options, and accounting practices. Business owners and managers may have questions about how to maximise profits, minimise expenses, obtain funding for growth, and manage their company’s financial risks. By understanding the answers to these frequently asked questions, business owners and managers can make informed decisions about the financial health and future of their company.

  • Are secured commercial loans available for sole traders?
  • Does the interest rate on commercial ute finance change with the size of the vehicle?
  • How do I know which if an unsecured commercial loan is my best option?
  • Can I get a balloon with a new ABN Chattel Mortgage car loan?
  • Can I use a commercial loan calculator to get estimates on a used truck loan?
  • Will I need to provide additional collateral for a commercial business bad credit car loan?

Where an acquisition by a commercial operation is considered an asset, it would be financeable with commercial funding products. All approvals are subject to individual lender guidelines and acceptance of the assets as suitable security.

Renewable energy systems considered as assets for an enterprise may be funded with the choice of:- Chattel Mortgage, Leasing, Rent-to-Own or Commercial Hire Purchase.

Include labour costs in an asset funding package will be subject to lender approval. The labour and equipment may need to be separated or they may be approved in the one funding arrangement. It may depend on the acceptance of the goods being funded as security.

The interest rate applicable to a renewable energy funding offer will depend on the credit product selected, the lender and the specifics of the application. The rates shown by most lenders will apply to good credit applicants for the acquisition of new goods.

The tax deductible elements of commercial funding products vary. The repayments on Chattel Mortgage and CHP are not deductible, except for the interest portion which is deductible. These products provide a deduction through depreciation of the asset. Leasing and Rent-to-Own repayments are deductible.

The treatment of GST varies with the credit products. GST is applied to the repayments with Leasing and Rent-to-Own. GST is not applied to the repayments for Chattel Mortgage and CHP as the full GST applicable to the goods is claimed at the time of purchase.

Commercial funding products allow for the goods being financed to be the security. For some applicants, lenders may request additional security. This is subject to individual lender assessment of the application.

An online generic credit calculator only has the functionality to provide calculations based on data input. These devices do not include lender fees and charges or make allowances for the credit profile of the calculator user. Any quote or offer received may be different from a result obtained with a calculator.

A balloon relates to Chattel Mortgage and CHP, a residual to Leasing. It is a percentage of the amount of the funding set aside for payment in full at the end of the funding term. It is an option.

All applications for commercial funding are subject to lender approval. Where the entire system is acquired from the same supplier at the same time, it may be approved for all items to be included in the funding.

All commercial funding applicants must have an ABN and identification. The application should be supported with whatever financials the operator has available. This can include tax returns, BAS returns, bank statements, annual accounts, trading figures and similar.

The interest rate offered on all applications for commercial funding are subject to the lender assessment of the application, especially the credit profile and strength of the financials or turnover. The rates advertised by lenders will be the best rates available and can be used as a guide.

When approved for self-employed funds, the operator may choose from Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. The choice will depend on accounting method and other aspects of the operation. In some instances, the lender may have a preference for approval of a particular product for a particular applicant.

Yes. Operators that are new or just in the initial phases may apply for self-employed funding. Some lenders have minimum trading times to approve commercial funding applications. Those that have been trading for less than 12 months may seek a lender that approves such applications and/or use a broker to assist.

ABN holder funding can be sourced for a range of product purchases. These include cars and motor vehicles, trucks and all types of equipment used in a commercial operation.

The structure of funding and products for self-employed enterprises will be the same for operators in all industries. The interest rates offered on credit can vary for different industries.

The amount of the funds approved for an ABN holder will be subject to lender approval and may be based on the strength of the application and the security provided.

Conditions may be placed by lenders on funding approvals for all types of commercial operators. Conditions may include additional security requirements, total loan limits and similar. All applications are assessed individually.

Yes. When approved for funds, all operators are entitled to the tax benefits applicable to the particular product selected. Tax deductibility is subject to meeting ATO guidelines and criteria. The tax benefits vary with different credit products.

Yes. Credit can be sourced for the purchase of all types of motor vehicles to be used in the operation. This includes utes, passenger cars, wagons, SUVs, vans, cab chassis and other body types.

Yes. When applying for credit ABN holders can request their preference for credit product, including Leasing.

Yes. Excavators would be included in equipment funding. Equipment funding generally includes all types of machinery including that used in construction, earthmoving and other industries.

Yes. IT equipment would be consider as equipment for an operation and subject to equipment funding. Some lenders will provide funds for hardware and software.

The security required for self-employed funding can depend on the individual application and be subject to individual lender approvals. For some applications, lenders may approve the application with the goods being purchased as the only security. Other applicants may be requested to provide additional security or personal guarantee.

It can be an accepted and common practice for lenders to include a review and assessment of the personal credit position of a self-employed operator when a credit application is made.

Leasing is a credit facility for the purchase of heavy vehicles. It is not a short-term hire or rental product.

Yes. Monthly payments are considered a commercial expense by the ATO and are fully tax deductible.

Yes. GST is added to monthly payments and can be claimed on the appropriate BAS return.

Rates for commercial credit are dependent on the application assessment by the lender. Lenders will typically display their lowest rate for new goods and good credit applicants.

The ownership of vehicles under lease remains with the lender not the borrower. This means the vehicle is not entered into the books or balance sheet of the borrower. Thus the reference ‘off balance sheet’.

Yes. All types of heavy vehicles may be suited to this form of funding.

Using a credit calculator can assist operators to compare estimates on all types of credit facilities.

An ABN is essential to be eligible for commercial funding. GST registration is not essential. Applicants will be required to provide documentation on the financials of the operation.

An online calculator is a generic device and does not include fees and charges or differences in the application and credit profile of the user. Any quote or offer made can be different from calculator results.

Yes. All types of heavy vehicles both new and used may be suited to this credit facility.

Online calculators only have the functionality to generate calculations based on the values input by the user. The device does not allow for lender fees and charges or for variations in credit profiles of the calculator users. Offers can be different from the results achieved using a calculator.

Yes. All commercial entities that hold an ABN can be eligible to apply for commercial financing.

CHP is a financing product with ownership of vehicle in full acquired after all repayments and the balloon are finalised.

Interest rates on CHP will vary across the lender market and for individual applicants. To obtain a specific rate based on individual credit and business profile, operators can request a quote.

The repayments on CHP are not tax deductible. The interest portion of the repayments is a deduction. The vehicle is depreciated in line with relevant depreciation schedules to realise a tax deduction.

Terms for CHP for motor vehicles can range from 1 year to 7 years.

A balloon is the percentage of the loan amount which is set aside and due to be paid in full after the final monthly payment.

All types of commercial vehicles may suit CHP financing. The choice as to which is the most suitable financing option will depend on aspects of the business set-up.

Commercial entities can select from CHP, Lease and Chattel Mortgage to fund vehicles. The better option will be the one that suits the accounting practices and financial objectives of the entity.

Yes. CHP may be used to fund purchases of both new and used vehicles to be used for commercial purposes.

Typically, lenders will attach a fixed interest rate to CHP financing. The rate remains fixed over the full term of the loan.

No deposit financing refers to the full purchase price of the vehicle included in the loan. Approval of a no deposit request will be subject to individual lender guidelines.

The selection of financing products for asset acquisitions covers Chattel Mortgage, Leasing, Commercial Hire Purchase or CHP and Rent-to-Own.

Interest rates on asset acquisition finance vary across the selection of credit products and will be based on the specifics of individual applications. Lenders assess the credit profile and financials of the applying business when arriving at a finance offer. Rates can also vary with new and second-hand machines.

Yes. The type of finance required by a sole trader can depend on how long they have been trading and their financials. Where sole traders do not meet all the bank or lender application criteria they may seek no doc or low doc options. These can be sourced primarily through non-bank lenders and brokers.

Not all banks and lenders will approve finance for enterprises without financials. Specialist non-bank lenders and brokers provide access to no doc and low doc options for applicants without financials.

All the commercial credit products offer tax deductions. The interest on all finance is tax-deductible. The monthly payments for Lease and Rent to Own are tax deductible. Chattel Mortgage and CHP products include a tax deduction through depreciation.

Financing can be sourced for individual machines and for multiple machines including entire fleets. This may include a special structured financing solution where a broker may assist.

Financing for used and new models can vary. The finance products are the same but the interest rates, terms and possibly some conditions can be different for used goods. The age and condition of the machine would form part of the application assessment.

The selection of finance products for machinery acquisitions is the same for machine purchases in all industries. The interest rate can vary for different industries by some lenders.

Operators may use a finance calculator to obtain estimates of possible repayments on all types of financing options. These are estimates only but can be helpful for planning purposes.

Terms for asset acquisition financing will be based on lender approval of the application. Terms of up to 7 years are available.

Commercial financing products vary in regard to suitability to either the cash or accruals methods of accounting and in the approach to balance sheet and treatment of tax. Operators are advised to consult with their accountant to select the option that will work best for their specific set-up.

Yes. Applications for machinery finance can be approved prior to purchase. The details of the machine and an estimate of the amount required would need to be provided to allow lenders to accurately provide a quote and approve the application.

There are lenders that approve funding for start-up operations. Some banks and lenders do have criteria for approval of 12-24 mths trading while some non-bank lenders will approve based on 6mth turnover or personal credit and guarantees.

A finance calculator provides only estimates on repayments. Consideration is not made for individual application inclusions and credit profiles nor are fees and charges included. Offers can vary from the results obtained with a calculator.

With commercial financing products the goods being purchased form the security for the finance. Some applicants may be required to provide additional security or personal guarantee.

Asset acquisition credit facilities include Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase. These facilities vary in taxation benefits, accounting measures, interest rates and suitability to accounting methods.

The interest rate offered to individual applicants on asset acquisition credit will depend on the credit facility and the lender’s assessment of the application. The credit profile of the applicant will have an effect on the rate offered.

Where an operator is setting up a new brew house, they may not meet all the criteria of standard commercial funding applications. This can be in regard to having all the financials or operating for the required trading period. There are lenders, predominantly in the non-bank sector and accessible through brokers that offer no doc and low doc solutions.

The turnover of an operation would be considered by lenders in assessing funding applications. Some lenders may require a full year or more of financials for an application while others may approve based on 6 months of figures. The amount of turnover as in the size of the operation, to get approval, will vary across the lending market. Applicants with low turnover may seek specialist lenders and brokers that offer funding to small and microbreweries.

All commercial asset acquisition funding products have tax deductible elements. The repayments for Leasing and Rent-to-Own are tax deductible. The interest on CHP and Chattel Mortgage is tax deductible. The repayments on CHP and Chattel Mortgage are not tax deductible. Assets acquired with CHP and Chattel Mortgage are depreciated and that is the tax deductible element.

The balloon applies to CHP and Chattel Mortgage. It is the part of the total funding amount which is set aside for full payment at the conclusion of the term. It is typically represented as a percentage.

Yes. The same credit facilities are available for new and used goods. The interest rate and some conditions can be different between offers for funding new and used goods.

Sole traders may not meet all the criteria for commercial funding applications from all banks and lenders. They may seek no doc, low doc and sole trader funding specialist lenders and through brokers.

Lower repayments on asset acquisition funding can be achieved by sourcing a lower interest rates, requesting a longer term and/or requesting a larger balloon amount. All these will be subject to lender approval. Applicants may use an online calculator to assist in planning how they would like their funding structured to achieve their preferred repayment schedule.

Yes. Applications for commercial funding can be submitted and approved prior to purchase. Details would be required of the estimated amount required and an idea of the goods for lender assessment.

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.

The pricing of credit products varies across the lender market. Banks and lenders will determine their own pricing based on their analysis of the economy and other factors. Rates offered will vary depending on aspects of individual applications.

A line of credit may be established at a fixed or at a variable interest rate. That may be dependent on the lender or in negotiation with the applicant.

Interest is charged on the portion of a line of credit used in a calendar month.

Options to a line of credit may include a secured or unsecured commercial loan. These credit products may be used for a range of purposes but are typically established for a set amount and over a set term.

A line of credit is a flexible format facility where businesses have access to funds as required. Other facilities such as secured and asset acquisition facilities are set for a fixed term and for a fixed amount and the goods are used as security. A line of credit is considered as an unsecured facility.

Collateral is not typically requested for approval of a line of credit. Approval may be given based on turnover and trading figures.

With all commercial credit products, lenders will assess each application individually when preparing an offer. The advertised pricing can be used as a guide to the lowest available.

With most commercial funding facilities, the interest portion is a tax deductible commercial expense.

A line of credit may be required for a range of purposes. The purpose may indicate the financial position and viability of the operation and may impact the lender offer.

Every application is addressed on an individual basis. Advertised rates will be a lender’s lowest current level. Any offer made may be higher than that advertised.

Yes. The lender accepts the vehicle as security against the funds being borrowed.

The interest portion of repayments is deductible only. A deduction is realised in the annual accounts through depreciating the vehicle.

No. GST registration is not a pre-requisite for approval for commercial credit.

No. The full amount of GST applicable to the purchase price is claimed in full on the next corresponding BAS after settlement. No further GST is applicable.

Yes. All types of commercial vehicles – heavy, medium and light duty, may be financed with this secured credit facility.

Yes. Vehicles powered by all fuel systems including electric power can be financed with this credit facility.

Leasing repayments can be compared with a Mortgage option by using an online credit calculator. The results are estimates only and to be used as a guide.

A balloon is an optional inclusion. It is a percentage of the total amount borrowed, not including interest, which is due for full payment at the end of the credit term.

Results obtained using a credit calculator are estimates only as they do not include charges and fees or take account of differences in credit profiles of users.

Yes. New and used vehicles can financed with a secured credit facility.

The online computation device is provided to calculate results based only on the values entered by the user. It does not have the functionality to predict lender charges or the specifics of the user or the property that may impact any offer made by a lender. Quotes can vary from the estimates received on an online computation device.

No. The use of an online device is purely for calculation purposes. To request a quote, users will need to contact the lender.

An online computation device can be used to calculate estimates on all types of premises including office space, factories, warehouses, commercial units, hotels, caravan parks, service stations and others.

The percentage of the purchase price approved in the funding will be subject to individual lender criteria. Up to 80% can be approved by some lenders for some buyers.

Yes. Funding estimates for all kinds of business premises including development projects can be calculated using an online computation device.

The rate offered will be subject to individual quotes. For estimating purposes, users may enter the rate displayed by the provider of the device.

Yes. Funding for holiday parks, caravan parks, eco camps and other vacation properties may be calculated using an online computation device.

The values entered into an online computation device can be changed to compare different properties.

There is no charge for using an online funding estimate device.

No. Online financing calculators do not have a memory. The results are cleared when a new calculation is started or the browser closed.

Machinery for use in the resources sector can be acquired with the choice of Leasing, Commercial Hire Purchase, Chattel Mortgage and Rent-to-Own.

The interest rate offered to a specific applicant will be based on the lender assessment of the application in regard to credit rating, amount requested, the machines being acquired and the credit facility requested. Rates vary with different credit facilities. Buyers may use the rates displayed by lenders as a guide.

Yes. Sole traders can apply for commercial credit for machinery acquisition. Where a sole trader does not meet the all lender criteria in regard to turnover, trading time and documentation, they may seek lenders that offer credit for sole traders.

Rent-to-Own and Leasing payments are treated as expenses and are a tax deductions. Repayments for CHP and Chattel Mortgage are not fully deductible. Only the interest portion is deductible. Assets acquired with CHP and Chattel Mortgage depreciable assets and the annual depreciation value is deductible.

Used machinery can be funded with the same credit facilities as new machinery. The interest rate offered may vary between used and new. Some lenders may also apply different conditions and offer different terms for used v new goods.

Prior to requesting a quote, buyers can use an online calculator to obtain rough estimates to compare machinery makes and models.

The credit term offered will be subject to lender approval. Terms of up to 7 years are quite common for asset acquisition funding. Longer terms would be by negotiation with the lender.

Yes. Applications for commercial funding can be submitted and approved prior to purchase. The amount required would need to be estimated and an indication of the machinery be provided to ensure lenders have sufficient information to provide a quote and approval.

An online calculator is a generic device and does not allow for variations in the details of an application, the credit profile of the calculator user and does not include lender fees and charges. Results from a calculator are estimates only and offers can vary from those estimates.

Commercial lending options provide for the machinery to be the security against the credit. For some applicants, lenders may request additional collateral. If requested, this may be provided with physical goods, property and other assets.

Bad credit truck funding may be sourced through specialised lenders. Any offers made will be dependent on the lender guidelines and subject to a review of the creditworthiness of the applicant. As small enterprises, owner operators can expect that a review of their personal credit profile will   form an integral part of the application approval process. This is a specialised area and all applications are addressed based on the individual aspects of the owner-operator.

The loan terms offered for poor credit funding will be dependent on individual lender guidelines. Terms of up to 7 years can be achieved for truck and equipment funding for applicants accepted by lenders. Each bad credit application is addressed individually and any offers made accordingly.

The rates, terms and conditions advertised by lenders are typically for applicants that have a good credit rating. Applicants with a lower rating may expect a higher interest rate and additional conditions on the funding. These may include additional security required, a limit on the total loan amount and others. Any special conditions would be advised when a quote is obtained.

No. Low Doc and No Doc funding is for enterprises that do not have all the financial records and documentation that is required to fully complete the application form. These applicants may have a good credit rating but not the documentation. Bad credit applicants may have full documentation.

Yes. Where an applicant is accepted for bad credit funding and accepts a lender offer, all the relevant tax deductions may be realised. The tax benefits vary across the selection of products – Chattel Mortgage, Lease, CHP and Rent to Own. When funding is finalised, the borrower receives may be entitled to claim the relevant deductions associated with the product selected.

It may be expected that the personal credit history and financial position of owners and directors of enterprises applying for bad credit funding would be reviewed. This may be especially relevant to small enterprises such as partnerships, sole traders and owner-operators. Personal guarantees from owners/directors may be requested to secure funding.

The circumstances by which a bad credit situation was arrived at, may be important to the approval process. Lenders may review the circumstances when assessing the application. Some may view certain circumstances with greater leniency and this may result in a better offer. Applicants are encouraged to be forthwith and provide detailed explanations when making a bad credit application.

Applications and requests for lending can be reported by lenders to Credit Reporting Agencies. The agencies maintain the credit histories of entities and individuals. Lenders review these credit reports when assessing applications. Where multiple requests for the same funding appear in a report, this may be viewed negatively by lenders as it may be seen as desperation.

Credit histories are held by Credit Reporting Agencies. These histories contain the history of credit held and applied for over a certain number of years. It shows the credit score and credit rating. Individuals and commercial enterprises can request a copy of their credit report through the relevant agencies. If errors appear on the report, there is a process in place to allow for fixing errors. This may improve the rating. Reducing debt levels may improve the financial position which may lead to a more favourable approach by lenders.

A bad credit score may need time to improve by displaying an ongoing record of good payments. Applicants may improve their prospects of being made a better offer by taking actions to improve their current financial position. This may include paying down current debt levels, both business and personal. It may include increasing income prospects by securing new or additional work. Reducing outgoings to improve the cash flow position may be considered.

When an application with a poor credit rating is approved for funding for a truck, the operator usually has their choice of product. The products include Chattel Mortgage, Truck Leasing, Commercial Hire Purchase and Rent to Own. The choice of product would be made by considering suitability of the features with the objectives and accounting issues of the operation.

All types of plant, machinery and equipment used across all industry sectors may be eligible for funding by all types of businesses including those with a poor rating for credit. Consideration of the asset – type, age, condition, etc, would typically form part of the application assessment process. Interest rates may vary on equipment based on the industry sector. Rates vary for new and used equipment.

Due to their structural nature of and the regulatory requirements, banks must adhere to certain guidelines when approving funding. When an operator with a poor credit rating is rejected for funding when applying directly to a bank, there are options available. There are non-bank lenders that will consider applications with a poor credit rating. Some of these do not work directly with customers but through selected finance brokers. Operators may consider engaging with a specialist finance broker to assist in sourcing quotes and offers.

Yes. When funding is secured based on a poor credit rating, the interest rate offered is typically higher than for good credit applicants. Additional conditions may apply. If over the initial period of the term the operator exhibits a good track record of meeting repayments, it may improve the credit rating. Refinancing to achieve a better interest rate and less strict conditions may be considered. Fees and charges will apply for ending the original arrangement early. These need to be considered in the overall cost-effectiveness of refinancing.

Financing a new café may include a range of assets including the fixtures and fittings, furniture, kitchen fit out including appliances as well as IT, POS and other items. Separate funding arrangements may be applicable and/or it may be possible to include multiple assets in the one funding contract.

Yes. Sole traders are eligible for commercial funding where they hold a current ABN. Being registered for GST is not essential.

Wheeled goods can be financed with the operator’s choice of credit product – Chattel Mortgage, Leasing, Rent to Own or Commercial Hire Purchase. The choice is dependent on the individual requirements, aspects of the operation, accounting measures, balance sheet approach and similar. All options may suit funding of wheeled goods.

All commercial lending product offer a tax deductible element. These elements vary across the product selection. With Lease and Rent to Own the repayments are tax deductible. With Chattel Mortgage and CHP the asset is depreciated and the value of the depreciation is the tax deduction. Which is the most effective option will depend on suitability to the objectives of the enterprise.

If purchasing multiple items such as forklifts, operators can discuss the possibility of including all in a single funding arrangement. Lenders may have their own guidelines around what can be achieved in this respect. Consideration of the specific goods, the application and the operation may be involved. Operators may benefit from the assistance of a broker to structure the funding.

Both hardware and software can be purchased with commercial funding. The type of credit applicable to the separate items may depend on the acceptance of the items as security. IT hardware is suited to asset acquisition credit which includes Chattel Mortgage, CHP, Lease and Rent to Own. The most suitable product for the software may depend on lender guidelines. Unsecured options may be considered where a secured option is not approved by a lender.

Yes. All types of medical devices and appliances are included the category for machinery funding. The same selection of credit products apply.

Application may be made for funding to cover the machinery required to set up a new brewery. The specifics of the items required will determine the type of credit product best-suited to the purchase.

The interest rate varies across the range of machinery credit products. CHP and Chattel Mortgage typically attract the lowest rates across the market. Lease is slightly higher and Rent to Own has the higher rate. Rates on unsecured options can vary depending on the quality of the application and any collateral provided.

Interest rates for commercial credit can vary for acquisitions in different industry sectors. Rates are determined by lenders based primarily on the risk assessment. This can involve the assessment of individual applicants and the industries in which they operate.

No. Registration for GST is not a pre-requisite for eligibility for commercial credit.

Used and second-hand machine can be acquired with the same credit products as new goods, subject to lender approval. This approval may be based on the age and condition of the machines being considered suitable security or collateral for the funding.

Applications for commercial funding can be submitted and approved prior to purchase. When purchasing machines at auctions, buyers can have funds approved prior to the event to enable confident bidding to a certain limit.

Buyers can use online calculators to work up estimates of repayments prior to applying for credit. These devices are available at lender and broker websites and are free to use.

Operators starting a new enterprise usually do not have all the documentation that is requested by banks and some lenders for the standard commercial credit application. They can consider Low Doc and No Doc options. These are available through primarily non-bank lenders and brokers can assist in sourcing these options.

Vehicles can be funded with the choice of Leasing, CHP, Chattel Mortgage and Rent-to-Own.

Rates offered by lenders will be based on the lender assessment of the individual application. Advertised rates can be used as a guide.

New operators may not have all the financials or meet all the criteria as required by some banks and lenders. They may seek brokers and lenders that offer low doc and no doc credit.

Vehicles can be funded with asset acquisition credit products. The fit out costs may be funded with an unsecured or secured credit product.

Rent-to-Own and lease payments are fully deductible. CHP and Chattel Mortgage payments are not fully deductible, only the interest portion is treated as a deduction. These types of credit realise deductible amounts through depreciation of the vehicle.

Most asset acquisition funding is secured with a fixed interest rate which remains fixed over the full credit term.

No. GST registration is not an essential requirement for commercial credit.

A balloon payment is due to be paid in full after the final monthly repayment is made.

When purchasing a second hand vehicle already fitted-out, buyers can select from Chattel Mortgage, Lease, CHP and Rent-to-Own. Used vehicle interest rates and other funding conditions may apply. Other acquisition of an ongoing operation such as goodwill, may be funded with secured and unsecured credit products.

Most lenders will accept the vehicle as the security against the funding. For some applicants, additional collateral may be requested.

When using an online loan calculator, users can input their choice of values. The interest rate entered should correspond the preferred loan product. The selection of loan products – Chattel Mortgage, Leasing, Rent to Own and Hire Purchase, have different rates. Refer to the rates as displayed by the lender and enter the rate for the preferred product. Note that rates advertised are for new goods, for applicants with good credit and do not include all fees and charges. Users may choose to input a higher than advertised rate to allow for a higher rate being applicable to their application.

No. The online calculator is a generic calculation device. It does not have the functionality to ascertain and allow for key aspects of an individual application which may impact the rate and loan conditions offered. These aspects are considered by lender when a request for a quote or application is received. The calculator result is for guide purposes only and is a rough ballpark figure only.

The result received using the calculation device does not take into account individual details of the application and the machinery being purchased. The credit rating of the applicant, the financial position, the type and age of the asset and other aspects can impact a specific loan quote. These aspects must be assessed by lenders and a quote based on the lender criteria and guidelines. The result does not allow for all fees and charges and these can vary with different lenders.

A balloon or residual is a portion of the total loan amount which is set aside for payment in a lump sum at the end of the term. It may be presented as a percentage or a fixed amount. Refer to individual calculators as to what is required. Balloon refers to Chattel Mortgage and Hire Purchase and residual to Leasing. Users may enter their preference for a balloon but it will be subject to lender approval.

Users may enter their preferred loan term when using an online calculation device for planning purposes. Terms of up to 7 years are available through some lenders. By varying the loan term, users will see how this changes the repayment amount. By entering variations in the loan term, users can plan how they would like their funding structured.

No. Online calculation devices are provided by many companies that offer funding for business assets. The use of these devices is typically available to anyone to derive rough estimates of possible funding. The results derived are not a quote or an offer. No obligation is attached to the use.

The results derived from an online calculation device are rough estimates only. To obtain an offer or quote for asset acquisition funding, a request will need to be made to the funding provider. Depending on services offered by individual funding providers, a quick quote may be requested by phone or online. A ‘request quote’ click through may appear on the calculation device page. For a firm offer to be obtained, an application would need to be submitted and assessed.

Yes. Online calculation devices are general purpose tools which can be utilised to derive rough repayment estimates based solely on the data entered. The device does not differentiate between different types of equipment. The sole function is to compute data based on the total amount, interest rate, term and balloon values as entered. As such, it may be used for all types of assets.

The purpose of an online funding calculation device is to provide a tool for operators to obtain rough estimates of repayments based on varying values. The device allows for complex computations of interest over certain timeframes to be easily calculated. These computations are usually beyond the capabilities of most individuals. The device is used to get rough estimates, to compare possible repayments on different makes and models and to plan how funding may be structured to achieve a workable repayment. The device is a buying and planning resource.

Using an online calculation device is an easy process. Users enter the values into the spaces as indicated. Other data or information may be requested by certain providers of these devices. The total amount is the dollar amount required. The term is the length of time in months or years to repay the commitment. The interest rate should correspond to the relevant product. The balloon is a percentage of the total amount to be paid when all repayments are finalised. Users enter the values corresponding to their funding request and click the calculate button. A monthly repayment result is then displayed. The values entered can be changed to derive different results. The calculator does not allow for all applicable fees and charges or individual aspects of an application which may impact the rate or conditions and hence the result displayed.

When the repayment result calculated is more than the user is wanting for their funding, the values can be changed and another result calculated. The total amount, term and balloon can be varied to receive another result. Reducing the total amount and/or increasing the term will result in a lower repayment figure. Increasing the balloon will lower the repayment amount.

Where a specific repayment amount is preferred, the values entered can be varied until the amount displayed nears that target amount. Leave the total amount and interest rate constant while varying the term and observe the variations in the repayment figure. The balloon and the total amount required may also be varied to change the repayment amount.

Comparing estimated repayments on different funding products is a key purpose of online calculation devices. Interest rates for Leasing and Chattel Mortgage are different. By entering the rate for each product and leaving all other data constant, the respective repayment estimate will be displayed. The device does not have a memory. Noting the results displayed is required.

The general rule is that the use of online funding calculation devices is free of charge. Funding providers, dealers and manufacturers that offer credit provide these tools as a service for prospective customers. But there should be no obligation to proceed with engaging with the provider of the tool by using the device. There should be no fee for this service requested.

In general terms, the reference to ‘equipment’ is to the majority of physical goods or assets acquired by an enterprise for use in that operation. For the animal care sector, that may include machines, devices, treatment facilities, systems, furnishings and fittings, operating theatres, specialist diagnostic and imaging machines and general office requirements.

A commercial application form requires financials. These include tax returns, BAS returns, annual accounts and other documentation. Where a new enterprise does not have all the documents as requested by a lender, they may seek out lenders or brokers that can off low doc and no doc options. Some lenders will approve applications based on turnover figures.

Interest rates are different for the different funding products. The specific rates offered to individual providers will be determined by the lender’s assessment of the application. Rates can vary for second hand and brand new goods.

The types of products for asset acquisition funding are Chattel Mortgage, Leasing, CHP and Rent to Own. Applicants should review the different features of these products in relation to their approach to balance sheet, tax and accounting practices in selecting which will best suit their needs. Consulting with an accountant is highly recommended.

Yes. Computer and other IT installations would be considered assets and funding applied for. Some lenders may split software and hardware while others may offer a package for the entire system.

Chattel Mortgage and CHP offer tax benefits through depreciation of the asset in accordance with the relevant ATO guidelines. A tax deduction of the monthly payments can be realised with Leasing and Rent to Own.

Yes. Sole traders can apply for commercial funding. Where a sole trader does not meet lender criteria or have all the documents for the application, they may consider lenders that offer Low Doc and No Doc options.

No. Interest rates on asset acquisition funding products are generally at a fixed rate. The rate remains unchanged over the full term of the funding.

Terms on funding arrangements can be negotiated with some lenders and are subject to their approval. For large priced items, a term of up to 84 months may be achieved.

With commercial financing products, the goods being acquired form the security for the funding, for most applicants. In certain circumstances, additional collateral may be requested. This may take the form of property or other assets or a personal guarantee.

Paying large insurance premiums in instalments rather than in one large annual payment. Annual payments of large premiums can place pressures on cash flow. Insurance Premium Funding (IPF) is a lending product, provided by specialist lenders that provides funding specifically for insurance premiums. The business pays the lender in instalments as agreed. Instalments can be monthly, quarterly or six monthly. Interest is charged based on the amount of the total premium and the terms.

Individual lenders will have their own guidelines as to the minimum and maximum premium values that they will fund. Typically the minimum premium which can be financed with this product is $5,000. The maximum may be in excess of $1million.

Carrier liability insurance premiums are suitable for this type of finance. The large annual premium can be divided into smaller instalments due over the 12 months, to ease cash flow pressures. Individual arrangements are made between lender and the entity.

Many different types of insurance policies may be eligible for and suited to this funding product. They typically include policies which attract large annual premiums between $5,000 and $1m. These can include carrier liability for transport operator, vehicle insurance on large fleets, professional indemnity required in legal, medical and other professions and public liability policies for high-risk sectors.

The interest rate on this type of financing is quoted based on individual needs of a business. The lender assesses the finance application and creditworthiness of the operation and takes into consideration the amount of funding required in preparing a finance offer. The timing of the instalments – monthly, quarterly or 6 monthly, will determine the total interest payable.

The purpose of this type of funding is the break down large annual premiums into more workable amounts to suit the cash flow of the individual operation. Instalment terms are negotiated individually. The options can include a monthly instalment, quarterly payments or two instalments at 6 monthly intervals.

IPF is a specialist commercial financing solution. It is not offered by all banks and lenders that operate in the commercial finance sector. Non-bank lenders are the main source of this financing product. Commercioperators may choose to engage with a specialist commercial finance broker to assist in sourcing this funding product.

Yes, subject to lender approval. The medical sector typically faces large premiums for indemnity policies. IPF may present a cost-effective solution. Individual medical practitioners, practices and large medical centres and facilities may seek this finance option.

Yes. Public liability policies for operators in high-risk environments may attract large insurance premiums. IPF allows for the large annual premium to be paid in smaller instalments over a 12-month period. The interest rate and terms are structured to meet individual requirements.

Yes. The legal profession can attract large premiums on professional indemnity policies. IPF provides for the annual amount due to be paid over a 12-month period. The instalment schedule is agreed with the lender, to best suit the individual requirements. Individual legal practitioners, solicitors, barristers, legal firms and other entities may consider IPF.

As a commercial financing product, interest is payable on IPF. The interest rate is quoted by the lender after consideration of the application and loan amount. The interest is calculated based on the rate, the amount and timeframe of the instalments. Two six-monthly payments would attract a greater total interest payable than 12 monthly or 4 quarterly instalments.

Secured loans are suited to the purchase of specific goods or assets such as motor vehicles, trucks and equipment. With a secured loan, the goods being purchased are accepted by the lender as the security, guarantee or collateral against the funds being borrowed. Lenders may request additional guarantees depending on specifics of the application. Unsecured loans are typically sought for non-asset acquisition purposes or where the goods being purchased are not accepted as suitable security for the loan.

The interest rate is typically higher for funding not secured by assets than for funding which is not secured by goods being acquired. The secured aspect of the funding is the reason for the higher rate. If a secured loan is in default, the lender can repossess the goods to recoup monies owed. Where no assets are used to secure a loan, this option does not present to the lender. The higher interest rate reflects the higher risk factor.

The suitability of finance products for enterprises will depend on the purposes for the funding and individual objectives of the enterprise. The purpose of the loan – asset acquisition or non-asset acquisition, will be a key determinant of the decision. If an operator is unsure of the choice of finance product, they may choose to seek advice from an accountant or financial advisor.

Purchasing stock which will then be sold as merchandise may be suitable for funding with an unsecured finance product. As stock that will be sold to customers over time, the goods would not typically be considered suitable for a secured products so an unsecured option may be considered. The timeframe over which the merchandise will be sold and funds recouped may form the basis for requesting the loan term.

Loan amount limits are subject to individual lender approvals. Lenders have their own criteria and guidelines for approving loans across their portfolio. This may include minimum and maximum loan amounts for some products. The loan amount requested forms an integral consideration in the loan approval process. Most pertinently with large amounts. Operators may canvass a range of lenders to source those that do approve loan amounts as required.

Equipment may be purchased with unsecured financing, but secured financing is more typically used for the acquisition of assets. Where the equipment being acquired is not accepted as suitable security, an unsecured option may be considered. Where the amount required is below the minimum for secured products such as Chattel Mortgage and Leasing, an unsecured product may be a suitable option.

By definition, unsecured finance does not have security. Security in this sense means the funding is not secured by the goods being funded. With an unsecured product, the collateral required will be determined by individual lenders. Lenders operate with their own criteria in regard to approving all types of funding. An assessment of the operation and with certain set-ups the owner or director also, is undertaken to establish creditworthiness. A personal guarantee from the owner or director and/or other collateral in the form of property or assets may be requested.

All applications for funding are subject to lender approval. The approval of a new business for an unsecured product will be subject to the strength of the application. No Doc and Low Doc options are available for new set-ups and this may include unsecured products through selected lenders. New operations that do not have the full documentation may be required to provide collateral with personal guarantees or property for the funding.

An unsecured funding product may suit a business seeking funding to cover initial set-up expenditures. The approval will be based on individual lender criteria. As the new operation may not have a trading history or the full documentation for the application form, consideration as a no doc applicant may be sourced. A personal guarantee from the owner may be requested. Security by way of property or assets may be requested by lenders.

Whether or not the interest rate on unsecured funding changes over the term will depend on the type of rate secured. The interest rate on unsecured products may be sourced at either a fixed or a variable rate. The decision may be determined by the lender or requested by the borrower. Where a fixed interest rate applies, the rate will not change over the term. Where a variable rate applies, the rate is subject to changes in interest rates in line with lender variations which may be driven by RBA monetary policy decisions.

Where unsecured funding is arranged with a fixed interest rate, the monthly repayments will also be fixed. Both the rate and the repayments will remain unchanged over the full term. Where unsecured funding is arranged with a variable interest rate, the repayments are subject to change. When a lender changes their variable interest rates, the rate may change and this would result in a change to the repayment amount.

The amount required for funding, especially smaller amounts, may be an aspect in deciding which is the most applicable form of funding. Many lenders will have minimum amounts that they deal with in regard to commercial funding. This may apply to overdrafts and to unsecured products. The interest rate on overdrafts is typically higher than for unsecured products and that may contribute to the decision. An overdraft is a very flexible option in regard to repayments. An unsecured option will have a fixed term and monthly repayment amounts. Requesting quotes for both products for consideration may be an option or discussing the decision with an accountant may be advisable.

There are numerous factors which will determine what terms are available for unsecured funding. The terms offered on unsecured funding may vary. Variations can be found with individual lender criteria. The amount of the loan may also determine the term approved. Terms as short as 3 months may be sourced from some lenders and up to 7 years from some, depending on the amount and individual operation.

Yes. Covering cash flow shortages is a purpose for which unsecured funding may be sought. Terms may be requested to meet specific expectations in regard to how long the shortage may be present. A personal guarantee may be requested to be provided by the owner. Collateral through property or other assets may be required.

To apply for unsecured credit, operators will need to provide documentation around the financials of the commercial plus details of the purpose or purchase for the credit. Some banks and credit providers will approve unsecured credit based on the strength of the cash flow of the operation. Providing strong and extensive documentation is important and may include income tax returns, BAS statements, bank statements and verifiable trading figures.

Machinery consider as assets for the operation can be funded through Chattel Mortgage, Leasing, CHP or Rent-to-Own.

Interest rates on commercial funding are offered by lenders based on an assessment of the application including the credit profile and the machinery. Used and new machines can attract different rates.

A balloon option is available with Chattel Mortgage and Commercial Hire Purchase.

The repayments for Lease and Rent-to-Own are fully tax deductible. Chattel Mortgage and CHP provide a tax deduction through the depreciation of the machinery.

Where delivery, installation and commissioning charges are incurred with the purchase of new machinery, buyers can discuss the possibility of including the costs in the same funding package as the machine. This is subject to lender approval.

The age and condition of used machines is assessed by lenders when preparing an offer. Funding for used machines can differ from new. Subject to individual lender guidelines, this can include different interest rates.

Buyers can use an online credit calculator to obtain rough estimates of repayments on machine funding prior to purchase.

Where new companies require funding for machinery but do not have all the financials to meet the application criteria, they may consider low doc and no doc options. These are available through brokers and non-bank lenders.

Credit calculators are generic devices and do not take into account individual applicant specifics. They do not include lender fees and charges. The results are only estimates and any offer made can vary from the results on the calculator.

The term for machine funding is typically negotiated with individual lenders. Terms of up 7 years are typical for industrial machines.

The results obtained using an online credit calculation device are estimates only. Any quote or offer may be different from the computation device results.

No. Using an online credit device is obligation free.

The online credit calculation device is not a funding application. Users will need to contact a lender or broker to apply for credit.

An online credit computation device can be used to calculate repayment estimates on Chattel Mortgage, Lease, CHP, Rent-to-Own, Secured and Unsecured credit.

Yes. Online credit devices can be used for new and used trucks. Users should be aware that the rate offered on used goods may be higher than for new goods.

Rates can vary based on credit profile, goods being acquired and the financial position of the business operation. For estimates, users can use the rates displayed by the provider of the calculator or a different rate.

Yes. All types of set-ups can use an online funding computation device to obtain estimates only. The device is provided to be used as a guide only and any offer can be different from the results calculated.

There is no charge attached to using an online credit calculation device.

When opting for a balloon, that amount should not be deducted from the loan total when using an online calculation device. The device will make the necessary adjustments.

Yes. To compare different funding options such as Lease and Chattel Mortgage, simply enter the appropriate interest rate for each option and compare the repayments.

Yes. Excavators can be funding with choice of asset acquisition credit products which include Lease, Commercial Hire Purchase, Rent-to-Own and Chattel Mortgage.

The interest rate offered on funding will be dependent on the assessment of the application by the lender. It will depend on the credit profile, the amount requested, the age and condition of the machine and the type of credit product. Rates displayed by lenders typically apply to new goods and for good credit applicants.

When purchasing a machine and trailer concurrently and from the same supplier, there are lenders that will approve funding for both items in the same offer.

Terms are subject to lender approval. Commercial equipment credit can be approved for up to 7 years.

No. With Chattel Mortgage the interest portion of the repayments only is a direct tax deduction. Wit this form of credit the machinery is depreciated in line with current ATO schedules and the amount of the depreciation is the tax deduction.

When an applicant does not have all the financials or does not meet other lender criteria, they may seek low doc and no doc options. These are available through specialist non-bank lenders and brokers.

Online credit calculators are for general purposes and the results calculated intended for planning and as a guide only. These devices typically do not allow for lender fees and charges and do not allow for variations in credit profiles and other details of the user’s financial position. Any quote or offer can vary from the results obtained from using a credit calculator.

A balloon is the portion of the total credit amount for Chattel Mortgage and CHP that is due for payment in full at the end of the credit term. It is usually represented as a percentage.

Asset acquisition credit is typically secured with a fixed interest rate and over a fixed term. That results in a fixed repayment schedule. If arranged under these conditions, the repayments should not change over the credit term.

Asset acquisition funding can be obtained with the machinery as the sole source of security. This is subject to individual lender approval. Where additional collateral is requested, it may be provided with property or other assets owned by the enterprise or personal property owned by the enterprise owner or director.

The difference between No and Low in reference to this type of loan is in regard to the amount of documents provided by the applicant. Low refers to less than the total amount and No essentially means none. An ABN is still required as is identification. The Low and No may refer to the quantity and/or quality of the documentation provides.

The documents refer to financial and other records which show the trading history and financial position of the enterprise. These may include tax returns, BAS returns, bank statements, accounts prepared by an accountant or by the owner and other such records.

Lenders may impose a limit on the loan amount they will approve to any applicant. This is relevant for both No Doc and fully documented applicants. No Doc applicants may have stricter limits imposed but this is based on individual lender decisions. It may be assessed on the basis of the perceived ability to repay the amount and credit history. The condition and type of goods being financed may also be taken into consideration.

Light commercial vans may be financed with this type of loan. This loan category is specifically structured to meet the requirements of enterprises which are just setting up and have not had time to accrue the necessary financial transaction history or trading history.

Yes. All kinds of commercial structures may apply for this type of loan including sole traders. The sole trader must have a current ABN and identification. By definition, no additional financial documentation may be required. The personal financial position and documentations of the sole trader may be requested as part of the application approval process.

Yes. When this type of application is approved, the operator may have their choice of funding product. The selection includes Leasing, Chattel Mortgage, Rent to Own and Commercial Hire Purchase. The tax benefits pertaining to the type of loan selected would be realised.

No. Being registered for GST is not a pre-requisite for this kind of funding. Applicants that are registered for GST may receive a more favourable view from the lender. Where an enterprise has an annual turnover of $75,000 or more, by law, the entity must be registered for GST.

A no deposit loan is when the total purchase price of the goods is included in the loan amount. The loan amount is subject to lender approval with all applications. With an application without all the documentation, a limit may be placed on the total loan amount approved. It is up to the discretion of the individual lender. The personal credit history and score of the business owner may be taken into account and additional security may be requested.

The goods being acquired with commercial funding typically form the security against the funds being extended. Applicants with no or little documentation may be requested to provide additional security or guarantees. This may take the form of assets owned by the business or the individual or a personal guarantee by the enterprise owner or a third party.

Where an applicant does not have all the documentation to complete an enterprise application form and/or with a new entity, the credit profile of the owner may be considered. Where the owner has a good credit score and meets other lender guidelines, this may be viewed favourably and result in a better interest rate offer or more favourable terms. Applicants can include relevant personal financials to support the application and offer personal guarantees.

Yes. The reference to no documentation is a description of the applying entity, not a type of funding product. When a lender approves an application for this kind of funding, the operator may have their choice of financing. Chattel Mortgage is an option for consideration. The suitability of Chattel Mortgage will depend on compatibility with business accounting methods and financial objectives.

All kinds of machinery and equipment may be financed with this funding option. This includes both new and second-hand models. Subject to individual lender approval as the asset being financed is considered in the application approval process. Heavy equipment and machinery used in many industries such as construction and earthmoving can be financed as well as delicate medical equipment and IT requirements.

When reviewing applications for this finance option, lenders may take into consideration the credit history of previously owned enterprises. Applicants can support their application by presenting documentation that demonstrates high creditworthiness and a good track record of meeting financial commitments. Information about previous loans will be reviewed by lenders during the credit history check.

Yes. Cars and other types of motor vehicles can be financed with this kind of funding. SUVs, passenger cars, dual cab utes, vans, and other vehicles used for commercial purposes may be considered for various commercial funding options. Both new and used vehicles may be financed. The age and condition of a second-hand car would be taken into consideration by the lender as part of the approvals process.

The role of a finance broker and accountant are quite different. The accountant is primarily responsible for preparing the accounts and financials for the operation amongst other accounting-based services. The role of a finance broker is to source lending options and structure the funding to suit the financials and other aspects of the client’s operation.

No. No referral is required to engage the services of a commercial funding broker. Clients can contact a broker and request a quote or discuss options.

In some instances the roles of an advisor and broker may crossover where an advisor also offers broker-style services. But primarily the advisor is tasked with providing guidance, advice and services around superannuation, investments and other decisions. A broker is tasked with sourcing funding for various acquisitions and other purposes.

Brokers offer the benefit of having access to multiple lenders to provide clients with more options than simply their bank. This may result in a more cost-effective and lower interest rate being sourced. Brokers can also save clients time in sourcing funds compared with the client undertaking the task.

No. Operators can accept funding offers from banks and other lenders where they do not already hold accounts. A broker will source the most suitable offer from across many banks and lenders.

Services offered by brokers may vary depending on their area of interest. Some may specialise in an industry or a particular type of funding such as motor vehicles or equipment. Many however, will offer a broad range of lending products for many purposes.

Commercial credit brokers carry out their work via phone and electronic means. This enables clients in many locations to access their services. In most instances it is not necessary for an operator to meet with a broker in person in order to use their services.

Chattel Mortgage is a very versatile and widely used form of commercial credit. Brokers offer Chattel Mortgage facilities for many asset acquisition purposes in addition to other credit products.

Yes, in most cases and unless stipulated by the broker. Most brokers will handle lending requests from all types of enterprises including sole traders. A requirement to be eligible for commercial funding is to have an ABN. Where a sole trader does not have all the financials for the application, they may seek a broker who provides low docs and no docs options.

Yes. Most brokers will include refinancing in their range of services. The complexity of the lending requirements and the industry may determine which is the most suitable broker. Some specialise while others offer the full spectrum of funding products and services to all industries.

The purchase of business premises is included as a purpose for commercial property finance. The property may be the current place of business or a new premises on another site. The premises may be used as the operation of a business in many industry sectors including manufacturing, general offices, retail, medical, warehousing and others.

Yes. Investing in commercial property may be facilitated with this type of funding. Commercial investment properties may include commercial units, warehouses, retail outlets, medical centres, petrol stations, holiday parks, motels, hotels and pubs, commercial and industrial units and other properties used to carry on commercial operations.

Funding is available for the purchase of property for development. It may be for a new development or redevelopment of an existing site. The size and scope of the acquisition and purpose may determine the funding offer. This type of funding is not available through all lenders. Purchasers may seek to engage the assistance of a broker to source appropriate funding solutions.

No. There are a number of differences between funding for residential and commercial properties. One aspect is the security offered by the acquisition. The interest rates on funding will also be different. Commercial funding may take a different structure to residential mortgages. The lenders operating in the commercial sector vary from those in the residential sector.

The interest rate on funding arrangements for the acquisition of commercial properties may be fixed or variable. The choice may be as requested by the lender or the borrower. The size of the loan and the term of the funding may determine the type of rate applied.

The amount of the funding requested in proportion to the purchase price and/or valuation of the property will be subject to lender approval. Funding for the purchase of commercial properties are especially structured and negotiated to suit the specifics of the acquisition. Variations in the amount approved will vary across the lender market. There are lenders that do approve funding for up to 80% for some applicants.

Purchasing a holiday park or caravan park freehold as an investment would be included in the types of properties eligible for funding. The entire property and ongoing business concern may be acquired as the investment and the management and operation of the business leased out.

No. Business owners can seek funding to purchase premises for the operation of their own business. Purchases of premises which will not be the site of the owner’s operations may be acquired with investment property funding. Funding is available for both premises for conducting the business of the funding applicant and for investment purposes.

This area of the lending sector is very specialised and every application handled individually. Lenders enter discussions with purchasers of properties and negotiate an individually structured solution. Funding for large scale properties may require specialist lenders and cover a range of funding options.

The interest rate offered for funding purchases of commercial properties will vary based on a number of aspects. Primarily with this type of finance, the risk level is a major consideration. The credit profile and financial details of the applicant, including the owners and/or directors of the entity applying for finance may be assessed. The kind of property, location and prospects of the entity being conducted at the property would also be considered when an interest rate is offered. Interest rates are also subject to cash rate decisions made by the Reserve Bank of Australia.

Yes. Many buyers will seek to secure funding prior to making an offer on a property. Details of the property will form an integral part of the application assessment process. Funding may be applied for and approval given based on a specific property and specific loan amount. Loans can vary for different properties so approval would need to be sought for a specific property not general approval.

A wide range of properties may be eligible for funding on a commercial basis. These may include premises where ongoing enterprises are operating across many industries. These include factories, warehouses and logistics centres, medical operations, aged care facilities, office premises, retail stores, factories and processing facilities and many others.

Repayments on funding are determined by the type and size of the interest rate, the loan amount and the loan term. Where the interest rate is fixed the repayments would be fixed for the term as agreed. With a variable interest rate arrangement, the repayment amount is subject to change in line with rate variations. Individually structured arrangements may include an option where a flexible line of credit is arranged with varying repayment commitments.

Not all banks and finance companies will offer funding for the purchase of commercial properties. The portfolio selection of individual lenders may be limited to products other than this purpose. Some may offer options for the purchase of the premises of a business but not for new developments. Those seeking this type of funding may consider engaging a specialist broker to source the most suitable lender.

Individuals as opposed to commercial entities may be eligible for funding to purchase commercial properties. This type of purchase may be as an investment rather than as a premises to carry out an enterprise. All applications would be subject to approval by an appropriate lender.

Yes. Funding for the development of commercial properties can be complex. Funding may be required for the purchase of the land only or for the land and the building and works costs to fully develop the site. Lenders will work closely with borrowers to structure an arrangement which best meets the purposes. The solution may include a number of phases and varying lending arrangements over the term.

Purchases made off-the-plan may be subject to lender approval. Considerations may include the timeframe for completion of the site and settlement on the purchase. Specialist lenders may be sought through a broker to provide a solution for this type of funding.

Yes. Office buildings may take different forms of ownership. Ownership of the entire building may be retained by the developer or investor or individual floors or suites may be sold under separate titles. It is quite a common practice for enterprises or investors to purchase an entire floor of an office building. Funding is available for such acquisitions.

The age and condition of a building would form an integral part of the funding application assessment by the lender. The funding options may differ for new or older buildings based on the risk criteria of individual lenders. The purpose of the purchase – an investment or as the premises for the enterprises, may also affect the funding offer.

Chattel Mortgage and Leasing are both very effective funding solutions for heavy vehicles. Neither is better than the other based purely on the features and benefits. The selection of which is the better product will depend on suitability to the financial objectives, accounting measures and approach to tax of the enterprise.

New owner-operators may not have all the documentation required for the application form. If not, they may consider Low Doc or No Doc options. These are categories of applications for operators without all the documentation. A situation typical of new operators. When approved  on a Low Doc or No Doc basis the operator may select from the range of funding products. The one which best matches the taxation approach, accounting methods and objectives of the operation would be deemed the most suitable or best.

When applying for truck funding, operators are required to provide a range of financial documentation and records as part of the application process. These can include BAS reports, bank statements, tax returns, annual accounts, trading figures, profit and loss statements and others. The quantity and specifics of what is required will vary depending on the lender. Holding an ABN and having identification is essential.

The same products are available for funding all types of trucks. They include Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own. The interest rates vary with the products and may vary with new and used vehicles. Specific conditions applied to individual offers may vary according to the age and condition of second-hand vehicles.

Where a vehicle and a trailer are purchased concurrently, the cost of both may be combined into the same lending package. This is subject to lender approval of the overall amount requested and other aspects of the application. Both assets must be acquired at the same time and in some cases from the same supplier in order to be combined into the one funding arrangement.

Yes. The same selection of funding products apply to all types of heavy vehicles. That includes electrified models, hydrogen cell and diesel models. The products include Chattel Mortgage, Leasing, Rent to Buy and Commercial Hire Purchase. Some banks and lenders may offer green vehicle funding for alternate fuel vehicles.

Refinancing is the process of replacing the current vehicle funding arrangement with a new lending arrangement. The new funding may be with the same product as the current arrangement or with a different product. Refinancing may be sourced from the same or a different lender. Exit fees will be charged by the lender for finalising the current contract prior to the end of the term. The refinanced arrangement would typically encompass all outstanding monies due on the current arrangement. That would include repayments, residual or balloon and relevant fees and charges.

All heavy vehicle funding products offer tax deductible aspects. The tax deductions vary with the different funding products. With Rent to Own and Leasing the monthly payments are tax deductible. With Chattel Mortgage a tax deduction is realised when the asset is depreciated. All interest is tax deductible as are lender fees and charges.

Yes. The monthly lease payments are treated as a business expense by the ATO and are tax deductible. The total of payments made in a financial year would be accounted as tax deductions in preparation of the annual tax return and accounts. GST is applied to repayments and can be claimed by those registered by GST on the relevant BAS return.

Chattel Mortgage includes the option for a balloon. This is a percentage of the total amount of the funding which is due for payment in full, in a lump sum at the end of the term. The balloon may be finalised with a cash payment by the operator or via refinancing. When refinancing a balloon, the vehicle would attract an interest rate relevant to a used vehicle. The same or a different lender and funding product may be selected for the refinanced funding.

When funding a vehicle acquisition with Rent to Own, the lender retains ownership title to the vehicle through the funding term. The borrower has full use of the vehicle, pays a monthly rental or funding repayment and is responsible for all ongoing and running costs. These include registration, insurance, servicing and maintenance, etc. At the end of the term, the borrower can finalise a buyback with the lender. The buyback amount may have been set out in the original funding arrangements or negotiated at the end of the term. When this is finalised, the lender transfers full ownership to the borrower.

The terms offered on vehicle funding may vary depending on the lender guidelines, the age and condition of the vehicle, the total amount requested and aspects of the individual application. Terms of up to 7 years are available through some lenders. A longer term results in lower repayments but a greater total interest payable compared with a shorter term. A shorter term means higher monthly payments but the vehicle will be paid out earlier. Customers can request preferred term when making application for funding. Using a finance calculator can assist in forming a view to the preferred term.

Interest rates on truck funding are generally the same for all sized vehicles. The rate offered to an individual operator by a lender will be determined by a range of considerations. These include the lender guidelines; the creditworthiness of the applicant; the quality of the application; the amount requested; and the age and condition of the vehicle. Used vehicles can attract a higher interest rate than new vehicles, regardless of size. The size of the truck based on heavy, medium or light duty, length or engine capacity may not typically impact the interest rate offered.

Yes. When refinancing a heavy vehicle funding arrangement, the operator may consider a change of product. The full range of options may be available. They include Rent to Own, Leasing, CHP and Chattel Mortgage. An operator may request changing product and lender. In some instances, the choice of product may be subject to lender approval. The preferred product is advised at the time of application so a relevant quote for that product can be obtained.

Forestry machines can be funded with the operator’s choice of products – Chattel Mortgage, Lease, Rent to Own and Commercial Hire Purchase.

Interest rates vary with different commercial funding products. Rates can also vary depending on the individual details of an application.

Yes. SMEs and sole traders can apply for commercial funding. Financials on the operation will be required. Some lenders may have criteria around the size of operations they fund. If facing challenges, operators may source lenders and brokers that offer suitable solutions include low doc funding.

Operators that do not have all the financials to complete the standard application form may seek lenders that offer No Doc and Low Doc commercial funding options. Brokers can assist with this.

The tax deductible elements vary with the selection of commercial funding products. Lease and Rent to Own repayments are tax deductible. CHP and Chattel Mortgage holders get a tax deduction when the machine is depreciated.

When attachments are purchased at the same time and from the same dealer as the harvester, many lenders will be able to include both in the one funding package.

Interest rates on used machines can attract different interest rates to new goods. The age and condition of the machine is taken into consideration when a lender makes an offer. There may be differences in terms offered and other conditions. The financing products are the same.

Technology would be included as a product which can be funded with commercial credit.

Terms for individual credit applications are subject to lender criteria and approval. A term of up to 7 years is achievable on some acquisitions.

Operators can use a calculator to get estimates of repayments prior to purchase and prior to submitting an application.

When acquiring assets, operators have a choice of leasing, rent to own, CHP and Chattel Mortgage. Deciding which is the most suitable option depends on accounting measures and other aspects. It is recommended that operators discuss this with their accountant.

The interest rate is different for leasing, rent to own, CHP and Chattel Mortgage and can be different for different applicants. Lenders assess individual applications in regard to credit rating and other aspects when preparing funding offers. The rates displayed by lenders are typically their lowest current rates for new goods and for applicants that have a good credit rating.

Sole traders may need to seek lenders that offer low doc no doc and sole trader funding options as not all banks and lenders offer these options. Using a broker may assist in identifying the right lender.

Where applicants do not have all the documentation to meet lender approval criteria, they can seek low doc and no doc options. These are provided by some lenders and may be sourced by using the services of a broker.

All commercial funding options include tax benefits but they vary. Chattel Mortgage and CHP provide a deduction through depreciation of the machines. Rent to Own and Leasing have tax deductible repayments.

Where a number of assets are required to be included in the one funding arrangement, applicants would need to discuss this with the lender. Some lenders will provide packaging options.

Yes. Provided the funding amount is within lender thresholds, weights racks, benches and other work out apparatus may be purchased with commercial funding products.

Yes. IT including software and hardware may be purchased with commercial lending products. Where a lender does not consider the goods as assets for security for Leasing or Chattel Mortgage, secured or unsecured commercial credit may be considered.

No. Where commercial funding is secured with a fixed interest rate, the rate remains the same and unchanged over the full funding term.

The balloon, residual or buyback is the amount set aside for payment at the end of a funding term for the borrower to have full ownership of the goods. Balloon relates to Chattel Mortgage and CHP, residual to Leasing and buyback to Rent to Own.

Yes. Once all the scheduled payments and the buyback amount are finalised, the ownership of the vehicle is transferred from the lender to the borrower.

Yes. Monthly payments are treated as an operating expense by the ATO and are fully deductible.

No. GST registration is not a pre-requisite for eligibility for commercial credit products.

Credit facilities vary in regard to suitability to accounting method, balance sheet approach, tax treatment and other accounting measures. It is advisable for operators to discuss the options with an accountant in relation to their specific set-up and objectives.

Off balance sheet means that the asset being acquired is not listed in the balance sheet of the business buying the goods. The ownership of the vehicle is retained by the lender and as such the borrower does not post the asset/liability to their accounts books. The asset is ‘off’ the borrower’s balance sheet.

Yes. All commercial credit products are available to fund the purchase of electric vehicles.

To compare repayment estimates on commercial credit facilities, buyers can use an online credit calculator. Being mindful that the results obtained are estimates only and to be used as a guide only.

New operators can apply for all types of commercial credit. Where the operator does not have all the financials or does not meet all lender criteria, they may seek brokers and specialist lenders that offer No Doc and Low Doc options.

An online credit calculator does not include the fees and charges applied by lenders and do not differentiate the credit profile and application details of users. The results obtained with a calculator are rough estimates only. A quote can be at a higher amount than the calculator result.

Yes. Operators may apply for all types of commercial credit facilities to fund used vehicle purchases.

Machines and assets to be used in the building sector can be financed with Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase.

The interest rates vary with different asset acquisition credit types and will also vary for different applicants and with the choice of lender. Banks and lenders will typically display their best rates for good credit applicants acquiring new machines.

Yes. An ABN is the minimum requirement to be eligible for commercial lending products. Where a sole trader does not meet all the criteria as set by some banks and lenders, they may choose to source a lender that does offer sole trader credit. A broker may be helpful in sourcing these lenders.

The terms offered on commercial lending will depend on the lender’s guidelines, the age and condition of the machinery, the credit profile, amount of the funding and other aspects. Up to 7 year terms are typical for asset acquisitions.

With Chattel Mortgage and Commercial Hire Purchase, the tax deduction is by depreciating the machine in line with the ATO rulings at the time. The interest is tax deductible. With Rent-to-Own and Leasing, the repayments are fully tax deductible.

Credit to purchase used machines can vary from credit for new goods. Lenders assess the age and condition and make rates, terms and other conditions accordingly. The same credit products can be utilised for both new and used.

An online calculator can be used prior to application to obtain estimates on repayments for machinery funding.

Yes. Applications for machinery funding can be approved based on an estimated amount and an indication of the machinery, prior to purchase. The offer would be amended to suit the final specifications post-purchase.

New operators without financials may need to seek lenders that offer no doc and low doc funding options. These options are available through primarily brokers and non-bank lenders.

Commercial funding products utilise the machines as the major collateral against the credit. In some cases, the lender may request additional credit be provided.

A letter of credit is essentially the international equivalent of a domestic bank guarantee. The lender provides a letter of credit for clients to provide to their supplier to ensure them that payment has been guaranteed by a reputed, reliable third party lender.

Providing the supplier is in a region which meets Australian trading laws and regulations, trade credit may be available to fund the transaction. Some lenders may specialise in certain geographical regions which can facilitate faster transactions.

Trade credit is priced in Australian currency in regard to interest rates and repayments. Suppliers will typically issue invoices in their preferred currency for payment. The lender uses the relevant exchange rate to convert the invoice value to the value in AUD of the credit amount required.

Interest rates for credit for international trade transactions may be priced at a fixed or a variable rate. The rate applicable to a particular product and application, will be dependent on the lender risk assessment of the application, current commercial lending rates and other factors.

Credit for importing goods is essentially an advance of funds from a lender in Australia, made to a company in Australia for the purchase of goods and products from a supplier in another country. There are a number of facilities and product options under this category of commercial lending.

The process for facilitating credit for payment of imports may vary. Typically, the lender provides the funds to their customer, the buyer, who then makes the transfer of funds to their supplier. Alternatively, the lender may facilitate the international funds transfer directly to the supplier.

Yes. Credit advances are available through banks and specialist lenders to allow companies in Australia to prepay for manufactured goods from overseas. A number of credit products are available.

A trade advance is a term used by lenders for credit products used for companies in Australia to pay for goods and products that they are importing into Australia for sale in their operation. The funds are advanced to allow prepayment of supplier invoices. International suppliers typically require payment prior to shipping when dealing with customers in other countries.

The security for trade advances may be accepted as the goods being funded or by other security. Asset-backed funding is available where property or other assets are provided as security against the funds.

As with all commercial credit, the amount approved on a trade advance is subject to lender approval of the application. Different product options suit different value invoices.

Motor vehicles can be financed with Chattel Mortgage, Leasing and Commercial Hire Purchase. The choice of credit product will depend on the method of accounting used by the entity; balance sheet strategy; approach to taxation; and general objectives.

In the commercial lending sector, the reference to ‘equipment’ is a general term to cover all machinery and equipment that is used by a commercial operation. It includes yellow goods used in construction, mining, civil works and earthmoving; delicate instruments and devices used in the medical, research and engineering fields; IT and other goods for general business operations; manufacturing and trades machinery; and many others. For commercial use, equipment needs to meet ATO criteria.

Yes. To be eligible for commercial funding products, operators must have an ABN as a minimum requirement.

All commercial funding products include tax deductible elements. Exactly which elements of the funds are tax deductible and at what point over the term the deduction is realised, varies with the credit products. Credit products should be selected based on suitability for the individual enterprise set-up.

New trucks can be financed with Chattel Mortgage, Leasing, Rent to Own and CHP. Which is most suitable will depend on the structure, objectives and accounting method used by the business operation. Operators are advised to discuss choice of credit product with their accountant.

Interest rates on used goods can differ from the rates for new goods. Lenders will include an assessment of the age and condition of the goods as well as the credit rating and financials of the operation when approving an application and making a rate offer. All applications are handled individually and addressed on their individual merits.

Yes. When IT and other technology is considered for commercial use, it can be eligible for commercial funding. Hardware and some software may be funded with Chattel Mortgage, Leasing, CHP or Rent to Own. Installations and non-hardware expenditure may not be considered suitable security by lenders for asset acquisition funding. A secured or unsecured option may be considered for these goods.

Where a truck and a trailer are purchased as one unit and/or as the one purchase at the one time, lenders can approve the acquisition in the one funding deal. Where a trailer is acquired after the funds for the truck are settled, refinancing may be required to incorporate both acquisitions into the one deal.

Exact repayments on new car funding will not be known until an offer is made from a lender. Interest rates, terms and conditions can vary depending on the individual application. Prior to applying, operators can use an online calculator to work up rough repayment estimates.

Cash flow shortages may be addressed with a number of funding options. Overdrafts are widely used as a flexible option. Longer term options may also include secured and unsecured funding. Where cash flow issues emanate from slow or long-paying debtors, Invoice Funding may be considered.

Buyers of heavy machinery can select from Chattel Mortgage, Lease, Rent-to-Own and Commercial Hire Purchase to fund their purchase. The products vary with interest rates, balance sheet approach, tax benefits and compatibility with cash and accruals methods of accounting.

Interest rates on machinery funding vary with the types of credit products and with the specifics of an application. The rates advertised by lenders refer to new machines and applications with good credit. Rate offers are subject to lender approval. Requesting a quote will provide a confirmed rate.

Sole traders can apply for Chattel Mortgage, Lease, Rent-to-Own and Commercial Hire Purchase funding. Where a sole trader has been trading for a reasonable timeframe, has all financials and meets lender criteria they should be eligible. Where they do not meet all criteria, they may seek lenders and brokers that offer options such as Low Doc funding.

To fully complete a commercial lending application, operators are required to provide financials which would include a tax return for the operation. Where an operator has been trading for a financial year, over 12 months, they would be expected to have lodged a tax return. Where this and other financials are not available, lenders may approve the application based on turnover. Alternatively, operators may look to lenders and brokers offering low doc options.

The repayments for Lease and Rent to Own are treated as tax deductions by the ATO. Repayments for Chattel Mortgage and CHP are not fully deductible. Only the interest portion is. These credit products provide a tax deduction through depreciation.

Purchasers of used machinery can select from the same credit products as applicable for new machinery. The interest rates can be different for used models. Lenders will assess the age and condition of the machine when approving terms and applying any conditions.

Buyers can use an online calculator to obtain rough estimates of repayments prior to purchase.

Yes. Pre-approved funding is available. Buyers can apply for and get approved for funding based on a estimated amount and with an indication of the machinery to be purchased. Details are finalised in the funding when the purchase is confirmed.

New start-up operators without the full financials required for commercial credit applications may seek out brokers and lenders that provide no financials credit products. These are known as Low Doc and No Doc options.

Many applicants will not need to provide extra security additional to the machinery being financed. The machinery is accepted as security by lenders with many applications. Where a lender does require additional collateral, it may be offered by way of property and other assets owned by the operation or the owner.

Yes. Most banks, non-bank lenders and brokers offer a service to apply for finance over the phone. The initial details required will be taken over the phone and the lender will advise the next steps required in the process. Documents, identification and verifications to support the application will also need to be submitted. In most instances, these documents may be submitted via email. The specific steps for applying for finance may vary depending on individual lender procedures.

Not necessarily. A loan calculator is a generic device which does not have the capacity to evaluate the creditworthiness of the user. The interest rate offered can vary from the rate that a user inputs into the calculator. A calculator result is designed to be used as a rough guide for planning purposes. A quote may involve an assessment of the individual application and lender approval regarding the amount requested and other details. The interest rate offered will be based on the lender assessment of the application.

Enterprises applying for finance need to provide identification and ABN as a minimum. Lenders will also request a range of documentation relating to the financial position and trading history of the enterprise. These documents may include BAS returns, tax returns, annual accounts, asset and liability statements and similar. The lender will advise what specific documents are required. Where a business does not have all the documentation, they may seek Low Docs or No Docs options.

Yes. The minimum requirement for applying for commercial loans is to hold a current ABN and produce identification. Additional documentation around the financial position of the enterprise is required to complete the standard application form. If the business is in the starting-up stages and does not have all or any of that documentation, they may consider Low Docs options. Lenders may also consider the personal financial position of the owner when approving finance for a new venture.

It is helpful to know which specific finance product is required when requesting a quote but it is not completely essential. There are a different products available and the interest rates for each are different so the quotes will be different for different products. In regard to asset acquisitions, a business may discuss with their accountant which product is best suited to their venture. Quotes may be sourced for a number of products for comparison purposes.

No. In requesting a quote, a loan applicant is not obligated to accept the quote, to proceed through further stages of approval or accept any offer from that lender. Acceptance of any offer made by a lender requires signing a finance contract.

The amount of time to receive a quote for finance will depend on the lender. Some lenders and brokers may offer a service to provide finance quotes on the same day or within 24 hours. Others may take longer. The amount of time taken may depend on the complexity of the loan and individual aspects of the application. Applicants may assist in expediting the process by having quick access to the relevant details and documents required by the lender.

Yes. A motor vehicle finance quote may be requested based on an estimate of the loan amount. The lender will also need to know whether the quote is for a new or used car. The interest rates for new and used vehicles can vary. Rates quoted by lenders, unless otherwise specified, are for new goods. A general indication of the type of vehicle – make, model, body type, may assist the lender in the quoting process. Finance sought and approved prior to purchase is referred to as pre-approved finance.

Quotes may vary due to a number of reasons. The interest rates offered by different banks and lenders vary. Lenders set their interest rates based on their own guidelines. The quotes received may be based on different interest rates. Lenders also have their own guidelines as to what loan conditions – term, amount, balloon, etc, that they will approve. These elements can impact the repayments and hence the quote. The creditworthiness of the applicant as assessed by individual lenders may vary and result in varying quotes.

The interest rate is derived from an assessment of the application by individual lenders. The creditworthiness is a major consideration. A review of the credit report of the business and in some cases of individual enterprise owners and directors is undertaken by the lender. The outcome impacts the interest rate offered. Aspects of the goods being acquired – new or used and others, can also impact the rate. Aspects of the loan requested – term, amount and balloon, can also have an impact on the rate. As a guide, applicants may use interest rates displayed by lenders as the best rate offered.

Most lenders will not request a separate fee for requesting a quote for commercial finance. Fees and charges do apply to finance and these should be included in the quote. Fees and charges applied by lenders will vary.

Yes. Quotes can be requested for all finance products and all categories of loans offered by a lender. These may include motor vehicle finance, equipment and truck loans, overdrafts, secured and unsecured loans, insurance premium funding, debtor invoice funding and refinancing. The complexity of the finance requested may impact the time required for the lender to prepare a quote.

Quotes are valid for a set time period after which they expire if not activated and utilised. There may be variations in the specific timeframe based on individual lender guidelines. Quotes are prepared based on the interest rates relevant at the time of the quote request. Interest rates can change and as such the quote may change. If a quote expires prior to being accepted and used, it would require requoting. The requote may be the same or different from the original quote.

Where a quote is requested based on an estimated loan amount and the amount is different when the vehicle purchase is finalised, the quote or offer would be adjusted accordingly. If when the quote is adjusted and an offer made, the borrower may choose to accept or reject the offer. If the loan amount is greater than originally requested, it could be expected that the repayments would be greater.

Items acquired for use in an enterprise in the medicine field would be generally considered as physical assets and eligible for commercial financing. These may include vast selection of machines, devices, and apparatus as well as the furniture required for patient treatment, reception areas, staff workstations and waiting areas.

A balloon applies to CHP and Chattel Mortgage and a similar option – a residual, applies to a Lease. This is a set portion of the amount requested, which is set aside from the repayments and due for full payment after the last repayment is made. Balloons and residuals are usually represented as a percentage.

Interest rates vary for the different commercial credit products and for different applicant credit profiles. Different rates can apply for new and second-hand goods. The rates advertised by lenders will usually be their lowest current rate on new goods for enterprises with a good credit rating.

When applying for funding, doctors and other practitioners can decide which credit product will best suit their practice set-up, the acquisition and their objectives. The products are Chattel Mortgage, CHP, Rent to Own and Lease. Where a lender does not accept the goods as suitable for these types of asset acquisition funding, doctors may consider a secured or unsecured commercial credit option.

Yes. The IT, computer and technical hardware and systems required by surgeries and practices may be acquired using commercial funding. The most suitable credit product may depend on the specifics of the tech – hardware or software, and lender guidelines.

All commercial lending products have tax deductible elements. But these vary with the product. Interest charges are fully deductible. Monthly payments on Lease and Rent to Own are considered an operating expense by the ATO and are deductible. The value of depreciating the asset is a deduction with CHP and Chattel Mortgage.

The treatment of GST varies with the types of asset acquisition credit products. GST is not applied to interest charges for any products. GST is applied to monthly lease payments and can be claimed on the relevant BAS. With Chattel Mortgage, buyers can claim the full amount of GST applicable to the purchase, not the loan, at the time of purchase. No GST is then applied or claimed on repayments or balloon.

Asset acquisition funding products – Chattel Mortgage, Lease, CHP and Rent-to-Own typically attract a fixed interest rate. The rate is fixed for the entire term of the lending and does not change with RBA rate decisions.

The term approved on a commercial lending application can be subject to lender approval and/or based on the preference or request of the applicant. Lenders may take into account the credit profile of the applicant, the age and condition of the goods and the total amount requested. Terms of up to 7 years are achievable on commercial asset funding.

The collateral or security required for approval of commercial funding will depend on the application details. For many applications for Chattel Mortgage, Rent to Own, CHP and Lease, the goods being purchased are approved as the security. In some instances, lenders may request additional collateral be provided. This can be offered as property, personal guarantee or other assets.

Credit approved with no financials provided, is a description of the applying entity. It means the applicant does not have the usual documentation required by banks and lenders to get approved. This includes tax returns, annual accounts, BAS and other accounts and turnover records.

Yes. All types of set-ups and corporate structures can apply for lite doc credit. That includes small entities operating as sole traders, self-employed and ABN holders.

To apply for funding without financials and documentation, applicants will be required to, at a minimum, have an ABN and identification. Applicants are encouraged to prepare simple accounts covering their trading and turnover to date.

Yes. When approved for funds without financials provided in the application, operators may select Chattel Mortgage or another credit product. The selection of credit products also includes Leasing, Commercial Hire Purchase and Rent to Own.

In the commercial lending sector, the reference to ‘equipment’ includes all types of plant, machinery and equipment which is used in a commercial operation. Equipment as deemed an asset by ATO guidelines. That may include many goods across all industries.

Interest rates for commercial funding are offered by lenders based on individual assessments of each application. The rate offered will be determined by the credit profile and ability to furnish the commitment as deemed by the lender. Applications without financials are not automatically subject to higher rates than fully documented applications.

Yes. All types of vehicles can be acquired with lite doc funding. This includes vans, utes, SUVs, wagons and passenger cars. Vehicles must be for use in the operation, under ATO rulings.

The quantity of financials provided in a credit application determine whether the application is for no financials or lite doc funding. ‘No’ implies no financials are available. ‘Low’ implies partial documentation is available.

Yes. Rent to Own can be selected as the credit product for applicants for funding based on having no financials. The choice of credit product should include consideration of the suitability of the features and benefits to the accounting practices and other objectives of the operation.

When approval for funding without financials, operators are entitled to the relevant tax deductions applicable to the credit product selected. The tax deductions vary with different credit products.

The best credit product for an operator requiring funding approval without financials is determined by which is most suited to their requirements. Credit products including Chattel Mortgage, Leasing, CHP and Rent to Buy have varying features in regard to compatibility with accounting methods and other aspects. Operators should review the features of each product in conjunction with an accountant to determine the best option for their profile.

Some lenders will approve lite doc funding applications based on turnover over a 6 month period. Operators can present simple spreadsheets and/or bank statements to verify turnover.

Applications for commercial car funding can be submitted and approved prior to purchase. The application is submitted based on an estimate of the amount required and details of the vehicle to be purchased.

Bank statements are considered as suitable financials to be included in a lite doc funding application. Some lenders approve applications based on turnover and this may be verified by bank statements.

There are lenders that will approve funding applications without all the usual financials including tax returns. In not having an annual tax return, it may be assumed that the operation has not been trading for a full 12 months/financial year. Other or no documentation may be presented. There are specialist non-bank lenders that do approve applications without tax returns.

To be eligible for commercial financing, operators must hold a current ABN as a minimum requirement. Sole traders are eligible.

The interest rate varies with the different vehicle financing products and can be different for different operators. Lenders assess each application when preparing a funding offer and interest rate.

The types of credit products for vehicle funding include Chattel Mortgage, Lease and Commercial Hire Purchase.

Terms of up to 7 years may be offered on vehicle funding but this is subject to lender approval.

Yes. Once approved for credit, an enterprise can realise the tax benefits relevant to the credit product selected.

Yes. All kinds of vehicles can be financed including passenger models, utes, cab chassis, vans, wagons and SUVs.

The vehicle is accepted as security with commercial lending products. Some new start-ups may be required to provide additional security by way of property, assets or personal guarantee.

The personal credit profile of a new sole trader may form part of the application assessment and approval process. There are lenders that do approve applications with no credit check.

Operators can select Lease to purchase commercial vans. The other options are Chattel Mortgage and Commercial Hire Purchase.

Where an operator does not have the financials requested by some lenders, they may seek No Doc and Low Doc options. These are available through specialist lenders and brokers.

No. GST registration is not an essential requirement to get approved for commercial vehicle financing.

A balloon is a portion of the total funding amount which is set aside and due for payment in full at the conclusion of the funding term. It applies to Chattel Mortgage and CHP.

A calculator only works out estimates. It does not take into account the credit profile of the user. The quote is based on an assessment of the credit profile and can be different from the results shown. The device is only for deriving rough estimates.

No. Lenders provide online calculation devices for use by visitors to their websites. Using the device should come with no obligation to proceed with a request for a quote, an application or any contact with the provider.

No. An online calculation device is only for deriving rough estimates it is not a finance application form. To apply for finance, operators must complete the business credit application form as provided by a bank or lender.

Estimates for all types of business finance can be obtained using an online calculation device. The interest rates differ for different products. Users should ensure they enter the appropriate interest rate.

Yes. Estimates for finance on new and used models can be obtained with an online calculation device. Users should be mindful that interest rates can differ for new and used goods. Rates displayed by lenders will be for new goods, unless otherwise indicated.

Interest rates are different for Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own. Users should enter the interest rate applicable to the finance product they are interested in.

Yes. All types of business structures, set-ups and sizes can use an online finance calculation device to obtain estimates and compare options.

Estimates for finance on the purchase of all types of machinery can be obtained using an online finance calculator. Users should be mindful that interest rates can vary with industries and with different types of machinery.

Users can use an online finance calculation device as many times as they wish. Multiple estimates can be obtained using varying combinations of data input. There is no time-out on these devices.

Most providers of online finance calculation devices do not charge a fee for use. The devices are provided as a free tool to assist user compare and plan their finance.

The finance term is the number of years or months the finance will be taken over. Users can input their preferred option. Many lenders will offer asset finance over up to 7 years and some for as low as 1 year. The term is subject to lender approval.

An online finance calculation device works out rough estimates of repayments based purely on the values entered by the user. The result is a simple mathematical function and does not allow for individual aspects of the user, lender fees and charges and other aspects of a finance application.

To compare different finance products in an online calculation device, enter the interest rate applicable to the product. To compare Leasing and Chattel Mortgage, carry out the calculations separately. Enter the values and interest rate for Leasing and make a note of the result. Enter the same values with the Chattel Mortgage rate and note the result.

No. The results obtained using an online calculation device are erased when new values are entered, the browser is closed or refreshed. The devices do not generally include a memory. Users should not the results for future reference.

Yes. Online finance calculation devices can be accessed by any device with an online connection. The calculation device can be accessed via the provider’s website or app.

Yes. Salon operators can select Leasing or Chattel Mortgage, CHP or Rent to Own to fund their requirements. The credit products vary in suitability to different commercial operation set-ups. Referring to an accountant as to which is the most suitable for an individual company is advised.

Interest rates on commercial credit vary with the type of credit and with the details in the individual application. Lenders assess each application including the credit rating when preparing offers.

New commercial operations are eligible for commercial lending products. Where all the financials and trading period to fulfill the standard application are not available, operators may seek lenders  or brokers that approve funding based on 6mth turnover and without financials.

Not all banks and lenders approve applications where insufficient financial records are provided. Applicants may seek low doc and no doc financing options. These are available through specialist non-bank lenders and may be sourced with the assistance of a broker.

Yes. All commercial credit products include tax deductions according to ATO rulings. Rent to Own and Lease payments are treated as an expense and are deductible. When Chattel Mortgage and CHP is used, the assets are depreciated in line with ATO schedules and the value of the depreciation each year represents the tax deduction.

Operators may negotiate with lenders on including multiple items in the one funding package or use the services of a broker to assist with this process. There may be conditions such as all items being purchased through the same supplier at the same time and charged on the one invoice.

Yes. Used items for salons and clinics may be funded using the same credit products as for new items. The interest rate typically varies for used goods. Lenders assess the age and condition of goods when preparing offers in regard to terms and conditions.

Yes. Assets required for a salon may be purchased with commercial funding. That may include the fit out, fixtures and fittings.

The terms offered on commercial funding will be determined by lenders based on their assessment of the application. The term may be determined by the amount requested, the age and condition of goods, security offered and credit profile. Asset acquisition funding may be acquired with terms of up to 7 years/84 months or with shorter terms when machines are upgraded more regularly.

A balloon payment refers to CHP and Chattel Mortgage. It is a portion of the total loan amount that is set aside and is paid in full after the last monthly repayment is finalised. It is an option.

Not necessarily. Lenders assess each application on an individual basis and make offers based on the risk assessment, credit profile and other factors. This individual approach can lead to differences in offers for different enterprises.

Chattel Mortgage and Commercial Hire Purchase typically are the lowest rates while Leasing is slightly higher.

Rates vary across the lender market which includes both banks and non-bank lenders. Lenders make their own decisions around the rates they will offer in the vehicle credit market and to individual applicants. One lender may be offering the best rates at one point in time while another may be at another point in time.

Yes. An online calculator can be used to obtain quick estimates. These are only estimates and a request for a quote will need to be made to receive a specific offer.

An online calculator is a generic device which does have the functionality to allow for the individual credit profile and other details of the application. Any offer made from a lender can be different from the one obtained with a calculator.

The interest charges on commercial vehicle credit is a tax deduction.

There can be differences in credit offers made on new and second-hand vehicles. The age and condition of the vehicle is considered in the application approval process.

Lenders advertise their lowest pricing which is for new goods and for good credit profile customers. Individual offers can vary and may be higher than the current lowest pricing.

Getting a lower priced vehicle funding offer may be achieved by improving the credit profile, reducing debt levels or possibly reducing the amount requested. The ways to achieve a lower priced offer will depend on the individual application.

Credit offers can vary with new and used vehicles and may vary based on the pricing of the vehicle in reference to the credit profile of the applicant. But in general terms, the rates advertised by lenders may apply to all kinds of vehicles including utes, vans, cab chassis, passenger models and SUVs.

Commercial vehicle funding is typically priced with a fixed rate. This remains unchanged over the full term of the credit.

Operators of all sizes may be offered competitively priced vehicle funding. Self-employed operators with good credit profile, strong financials and turnover and that meet all lender criteria may be eligible for good rates.

There are a number of credit products available to address income-expenditure imbalances. These include overdraft, line of credit, secured finance and unsecured finance. The suitability of products can be based on the timeframe, amount required and purpose for the funds.

An overdraft is a line of credit where a set amount of fund is made available to be used when required. The overdraft amount is typically applied to the transaction account so operators can see how much of the overdraft they are using at any time. Once the funding is approved, the borrower does not need to refer to the lender to use the funds. An overdraft can be set up for varying lengths of time or on an ongoing basis.

The interest rate is different for the different options. Secured options may attract a lower rate than unsecured and overdrafts. Rates can vary between different banks and with non-bank lenders. The rate on a particular loan may be fixed or variable.

To select the most suitable funding option to meet expenses, operators can review the features of each option in relation to the amount required, the purpose for the funds and the amount of time the funds are required for. Short term and long term options are available as are fixed term products and ongoing lines of credit.

The way tax is handled on funding can be dependent on the accounting practices implemented by the enterprise. Interest payments and fees charged by lenders should be tax deductible. Where repayments are made on secured and unsecured options, operators should consult with their accountant re the deductibility.

Funds to manage income-expenses can be used for a range of purposes. These include:- covering general operating costs and expenses; purchasing inventory; purchasing supplies, materials and components; covering unexpected costs; repairs and maintenance of equipment and machinery; and acquisitions for which asset finance is not suitable.

Ongoing lines of credit, overdrafts and similar drawn-down facilities do not have fixed repayment schedules. The funds are used and replaced as suits the needs and turnover of the operation. Secured and unsecured options will have a fixed monthly repayment schedule.

Yes. All kinds of enterprises can apply for commercial credit products. Approval is based on individual lender criteria. A personal guarantee may be required. Where a sole trader does not meet the criteria of a bank or lender, they may seek options from non-bank lenders or a broker.

The security required on commercial credit for ongoing general support will depend on the type of product, the profile of the applicant and lender guidelines. Some products can be sourced based on strength of turnover while others will require assets or property as security.

Operators without financials can seek No Docs and Low Docs options for ongoing funding support products. These are typically available through non-bank lenders and can be sourced through brokers.

Yes. General lines of credit type funds can be used to purchase stock and build inventory. The funds can be repaid or replenished when the stock is on-sold.

The finance term for general lines of credit may be fixed or ongoing. Overdrafts may have a fixed term whereas lines of credit tend to be for longer, unspecified terms.

Start-up enterprises may apply for funding support for the operation. Approval will be based on lender guidelines. Security may be required to be provided by the owner.

An overdraft may be ideally suited to deal with slow-paying customers. This allows the funds to be available to pay bills and operating costs while waiting for income from invoices to be received. Other more targeted products include Invoice Funding products.

Seasonal issues with managing income and expenses are particularly common in the fresh produce, agricultural and farming sector. Overdrafts can be an ideally solution to allow growers to meet their expenses until harvest time.

Establishments purchasing cooking and food prep units can select from Chattel Mortgage, Lease, Rent to Own and CHP to fund the purchase. These facilities vary with interest rate, balance sheet and tax approach and suitability to cash or accruals method of accounting.

The interest rate on commercial funding products vary and there are variations across the lending sector. Lenders assess each application and make a rate offer based on that assessment. The rates advertised by lenders typically refer to new goods and applicants with good credit rating.

Lenders request a range of financial records and documents to complete the commercial lending application form. If new operators do not have these documents, they may seek lenders and brokers that offer no doc, low doc and without financials facilities.

Credit products vary in the way the balance sheet is approached, in the way tax deductions are realised and how they work with other accounting practices. The best option is the one that is sync with the set-up and objectives of the individual applicant. Operators are advised to refer to their accountant for advice on selecting credit products.

Different credit products offer varying tax benefits. Lease and Rent-to-Own include tax-deductible monthly payments. Chattel Mortgage and CHP include a tax deduction when the goods being financed are depreciated. Interest on funding is tax deductible.

Applicants may apply for a funding solution which includes multiple items. This will be subject to lender approval with certain criteria applying. Operators may seek the assistance of a broker in sourcing lenders that facilitate this option.

The same credit products can be used to fund both new and used goods. The interest rate on used goods can be different from the rate for new goods. Lenders may apply additional conditions on funding for used goods.

Yes. Assets purchased for a commercial operation can be eligible for commercial funding.

Commercial financing products use the goods being acquired as the security for the funding. For some applicants and some purchases, lenders may request additional collateral. Where requested, operators may offer security by way of other assets or personal guarantees.

Yes. Leasing includes the option for a residual. This is a portion of the funding amount which is due for payment in full at the end of the lease term. Residuals are in line with ATO rulings.

The best funding for assets for an establishment is the option that suits the accounting method and approach to tax and the balance sheet. The selection includes Leasing, Chattel Mortgage, Rent to Own and CHP. There are differences with accounting and tax and operators are advised to refer to their accountant when selecting the best option for their set-up.

The interest rate for credit facilities differs with the product and will differ based on the lender assessment of the application. Applicants can use the rates shown by lenders as a guide for planning.

Not all banks and lenders have the capacity to provide funding for new operations. New operators can seek no doc and low doc options through non-bank lenders and brokers.

Yes. A cool room would be considered an asset and fundable through the selection of asset acquisition funding products.

How a tax benefit is realised differs with the types of credit facilities. The repayments on Rent to Own and Lease are deductible. With CHP and Chattel Mortgage, the interest portion of the repayment is deductible. To realise a tax deduction with CHP and Chattel Mortgage, the asset is depreciated in line with ATO rulings.

Where an operator requires the purchase of multiple appliances and machines to be incorporated into the one funding package, they will need to speak with individual lenders as to their capacity to do this. A broker may be of assistance in sourcing a lender that has the capacity to assist in this regard.

The same credit facilities apply to new and used goods but the interest rate and conditions may be different for used goods.

The balloon is part of a CHP or Chattel Mortgage agreement which is set aside and due to be finalised at the end of the term. It is a percentage of the total requested.

Most asset acquisition funding can be approved with the goods being purchased as the security. Some applicants may be required to provide additional security based on the credit assessment of the application by a lender.

An application for funding requires an ABN, ID and a range of documentation including financial records. These records may include income tax returns, BAS returns, bank statements, annual accounts and other records.

No. Clients can contact brokers directly with no referral necessary.

Brokers that stay abreast of the latest tax legislation will know the current tax deductions pertaining to the range of commercial credit products. The suitability of tax opportunities and options can vary with individual enterprises. A broker can outline the tax options but referring to an accountant for suitability for a particular set-up is advisable.

The role of a broke differs from the traditional roles of an accountant and a financial advisor. The broker is solely tasked with sourcing, negotiating and structuring funding requirements based on the client’s briefing. An accountant handles primarily the accounts, taxation and other financial affairs. The accountant may advise the most suitable credit product for the broker to source for the client. Advisors vary in their areas of interest and services. Primarily they are categorised as advising clients on investing their funds such as in superannuation.

No. For most clients, using a broker can significantly simplify the process of sourcing funds. A broker will typically take the brief from the client and then handle all the sourcing of the lowest rates and most suitable options. The broker handles all communications with the bank or lender which saves the client time and often a lot of trouble.

The focus of a broker is to work in the interests of the client. Fast action is a priority for most brokers. Brokers operate with industry-level connections with banks and lenders which can facilitate faster approvals in many instances. Brokers may also assist clients with their application to ensure smoother, faster approval.

The services offered by commercial funding brokers may vary depending on any specialty area they may focus on. In general terms, a broker provides a service to source funds for operations from across many banks and lenders. This includes finding the most suitable lender, negotiating the best interest rate, discussing the terms and conditions preferred by the client with the lender and affecting settlement.

Yes. The location of the equipment in reference to the operator will not affect the funding options. Brokers operate nationally, providing services in many areas and for acquisitions across state and territory borders.

Brokers can offer the full selection of commercial funding products. These include:- Chattel Mortgage, Lease, Rent to Buy, Commercial Hire Purchase, Unsecured Credit, Lender Overdraft, Refinancing, Invoice Funding and Insurance Premium Funding amongst others. Some brokers will offer products for those without financials and other specialist options.

Yes, depending on the individual operating focus of a broker. Some brokers may work only with specific types of operations whereas others offer services to all that have an ABN. Self-employed operators are eligible to use commercial lending brokers to source a range of funds.

The types of machinery and equipment that an individual broker works with can vary. Many brokers provide services for sourcing funding for a large selection of machinery and finance. Some lenders mat have minimum and maximum thresholds on the total amount of funds. A broker may source the suitable lender that will approve the application.

This commercial funding product is used by enterprises to get paid more quickly for the invoices they raise. It is designed to suit enterprises with customers that have extensive payment times on invoices. The funding allows the venture to receive payment on a portion of the value of the invoice when the invoice is raised to ease cash flow pressures.

This type of funding is providing to overcome issues associated with slow-paying customers. This funding provides a percentage of the value of the invoice from the lender at the time the invoice is raised. The balance is paid when the customer pays the invoice total to the lender. Suitability of funding products to a particular enterprise will be dependent on individual requirements.

This type of funding product is arranged with terms based on individual requirements. A percentage of the total invoice amount is paid to the business when the invoice is raised. The balance when the customer makes the payment to the lender. Timing of how much is received is dependent on the arrangements agreed upon between the lender and the entity.

Interest is charged on the funds which are paid initially, at the time the invoice is raised. The amount of interest payable will depend on what percentage of the invoice value is required at that time and how long the customer takes to pay the invoice amount to the lender. A fee for the service is also charged by the lender.

The most appropriate form of commercial funding will depend on the individual requirements of the enterprise. These issues may be discussed with the accountant. Overdraft can be a flexible and versatile product which can be arranged as an ongoing draw-down facility. This may be used to cover timing between issuing and receipt of invoices. It may also support an operation during quieter or lower income periods. Invoice Finance is a specialist and specific product which directly addresses the timing of payment of invoices. The two products have differing purposes.

Operators can consider a number of issues when deciding what percentage of the invoice value to be requested in this facility. The income required to support the venture and cover costs until the full amount is received is a key consideration. The percentage can vary depending on individual requirements and is agreed by negotiation with the lender.

This type of funding is designed to provide a set percentage, not the full amount, of the invoice value at the time the invoice is issued. The amount required is considered by the operator and negotiated with the lender. Where a larger percentage is requested, more interest would be payable.

This type of funding facility includes interest payable on the funds provided and a fee from the lender. The interest payments and the fees would be considered as tax deductible commercial expenses.

Individual requirements of an enterprise will determine the suitability of this type of funding solution. This is a specialist product, structured to address a specific need of creditors receiving a portion of outstanding payments promptly. Where the funding needs of an enterprise are more broad and stem from other issues, alternative products may be considered. Cash flow issues may be addressed with an overdraft facility or a secured or unsecured loan.

This is a specialist funding solution for enterprises and may not be available in the portfolio of all lenders servicing the business market. Non-bank lenders that specialise in more specific and targeted solutions offer this product. Commercial enterprise owners may seek to engage a finance broker to source this solution.

The costs involved in utilising this product are the interest payable and the service fee. Lenders charge a fee for the service. These fees vary with different providers. Interest is charged on the funding extended and will be dependent on the time the customer takes to finalise the invoice payment. Interest rates are negotiated on an individual basis.

All kinds of commercial enterprise may discuss this type of funding arrangement with providers of this service. Lenders will have their own guidelines in regard to the size of the clients take on. This may be determined by the value of the invoices individually, in dollar amount or in quantity per month. SMEs may consider seeking assistance from a finance broker to source a provider that meets their requirements.

This is a very specialist funding product and is individually tailored to suit the needs of individual operators. The length of time the arrangement is in place may be negotiated with the lender. This facility may be established as an ongoing arrangement or for a specific timeframe. The terms agreed will depend on the lender.

The amount of interest charged will depend on the percentage of the invoice value requested in the first payment from the lender and time the customer takes to pay the lender the balance. The shorter the timeframe for the customer to pay the lender, the less interest would be payable.

A wide range of items required by the oral health profession can be purchased with commercial funding. Lenders provide funding for imaging and diagnostic machines, treatment tools and devices, patient chairs, operating theatre set-ups, the furniture and fixtures for a surgery and many others.

Yes. IT systems and installations for surgeries can be acquired with commercial funding. Options can be sourced for hardware and software and to cover installation costs.

Yes. IT systems and installations for surgeries can be acquired with commercial funding. Options can be sourced for hardware and software and to cover installation costs.

Machines and tools required by dentists may be acquired with asset acquisition funding products – Chattel Mortgage, Leasing, CHP and Rent-to-Own.

Yes. Chattel Mortgage is a versatile form of commercial credit which can suit the acquisition of many of the requirements for oral health surgeries and practices.

The tax deductions vary with different forms of commercial credit. The repayments on Leases and Rent-to-Own are considered a business expense and fully deductible. With CHP and with Chattel Mortgage, the tax deduction is through the depreciation of the goods. The depreciable value each year is according to ATO schedules and taxation rulings.

Yes. Self-employed business structures are eligible for commercial funding arrangements. Some lenders may have criteria which are difficult for self-employed operators to meet. They may seek no doc or low doc options or lenders that do provide funding to self-employed practitioners.

No. The interest rate on asset acquisition funding products is typically at a fixed rate. The rate remains the same over the full term of the funding.

Practices requiring multiple items to be packaged into the one funding agreement may request this from their lender or broker. It may be achievable but will be subject to individual lender approval and guidelines.

Many asset acquisition funding agreements utilise the goods being purchased as the security for the credit. Many applicants may not be required to provide additional collateral. Whether additional security is required may be dependent on the lender assessment of the application.

Machinery is classed as assets and the selection of asset acquisition funding products are available. These are Lease, Chattel Mortgage, CHP and Rent to Own.

The interest rate offered will depend on the lender assessment of the application. Credit profile and rating, industry sector, type of machinery, loan amount and the type of credit product selected will determine the rate offered.

All commercial funding products offer tax deductions but these vary with the products. Lease and Rent to Own have tax deductible monthly payments. CHP and Chattel Mortgages have tax deductions via depreciation of the machinery.

The machinery being financed will be the main security against commercial funding solutions. For many applications no additional collateral will be required.

Funding for new and used machines can vary in regard to the interest rate and conditions. The same commercial lending products apply.

Yes. Manufacturers can use a finance calculator to obtain estimates on repayments prior to applying. The results are estimates only and for the purpose of planning only.

Balloons and residuals are the portion of the funding amount set aside to be finalised at the end of the financing term. Balloon refers to CHP and Chattel Mortgage. Residual refers to Leasing.

Funding offers on machinery can vary for operators in different industry sectors. Offers are dependent on the lender’s risk assessment of the applicant and the specific industry of operation.

Repayment estimates obtained via an online calculator are rough ballpark figures only. They do not include fees and charges and do not allow for specific aspects of the application including credit profile. Calculator results can be different from actual funding offers.

Terms on commercial funding are negotiated with lenders and based on numerous factors. Terms of up to 7 years are typical but longer terms may be achieved by negotiation.

Upgrading to new technology is considered an operating expense which could be approved for funding.

Funding for vehicle service and maintenance is individually sourced. The funding would typically cover the full scope of the work based on the invoice from the repairer.

Vehicle service and maintenance work may be funded with an overdraft, secured credit or an unsecured loan.

All commercial funding applications are considered individually in regard to the interest rate. The credit profile of the applicant is integral to the outcome.

An overdraft is a line of credit which is provided to cover a range of non-asset expenses. Operators can draw down on the funds as required. Interest is charged only on the portion of the funds used in a month. Overdrafts may be established for a short term or as an ongoing cash flow support solution.

A range of assets and property may be offered as collateral for a secured loan.

Sole traders are eligible to apply for all types of commercial funding as long as they hold an ABN.

The terms available for vehicle service credit will depend on the amount requested, the product selected and the lender guidelines for approval.

Interest charges and fees on commercial funding is considered a tax deduction. Operators are advised to speak with their accountant around how repayments on vehicle service credit may be treated with their accounting method and set-up.

An online calculator generates estimates which do not include lender fees and charges nor take account for the individual credit profile. Any offer made can be different from the results obtained from a calculator.

Yes. Self-employed and ABN holders can be eligible to get approved for credit as a new operation. Holding a current ABN is an essential requirement. Each credit application from new operators is addressed individually by lenders in assessing risk and the interest rate and terms applicable. Personal financials and credit may be required in the application.

Interest rates on all commercial credit are offered following an assessment of the inclusions in the application and the profile of the applying entity. Rates advertised are typically for new goods and for good credit score applicants. New operators can achieve competitive rates. The credit profile of the owner may be taken into account when lenders assess the rate to offer.

Work vehicles for new operators may be funded with their choice of asset acquisition products. These products include Chattel Mortgage, Leasing and Commercial Hire Purchase. Operators are encouraged to discuss the suitability of products for their set-up with their accountant.

Yes. New owner-operators may consider Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase to fund the purchase of a truck. These facilities are available for both new and used vehicles, heavy, medium and light duty, all makes and models. The interest rates and credit terms can vary for new and used vehicles.

Different credit products have different tax benefits. When approved for a particular credit product, a new operation can realise the relevant tax benefits. Interest on commercial credit is usually fully tax deductible. With Leasing and Rent to Own, the repayments are tax deductible. With Chattel Mortgage the tax benefit is derived through depreciation of the asset. With secured and unsecured options, the tax benefit may depend on the purpose of the credit.

Operators may seek credit to fund the initial set-up of a new enterprise. The type of lending product most suitable will depend on the costs and expenses which are being covered. Secured and unsecured options are available. Where an enterprise has no assets to offer as security, the owner may be requested to provide personal guarantee or personal assets as security.

Funding is available to assist new operators with the purchase of the initial and ongoing stock or merchandise for their operation. Secured and unsecured funding may be considered for this purpose. The type of merchandise and how quickly it will be sold may influence which credit is best suited. For some operations, an overdraft may also be a suitable option.

Many new operators may need to provide a personal guarantee against credit taken out to set-up a new enterprise. The type of collateral or guarantee may be personal assets and property or personal wealth holdings.

No. Start up operations will not have had time to establish a credit rating and applications for credit are not assessed in the same manner as bad credit applications. They do not attract the same interest rates and loan conditions as bad credit funding but may not be offered the lowest rates advertised by lenders. The credit profile of the owner may be assessed.

New start ups usually do not have the complete set of documentation of financials required for commercial credit applications. In these instances, Low Doc and No Doc options are available through specialist commercial credit providers.

The services provided by commercial lending brokers can vary. Some may specialise in certain lending areas while others will cover the full spectrum of funding requirements. The services generally include sourcing credit quotes, handling negotiations and communications between the lenders and clients, structuring the credit contract and handling settlement.

With the way the commercial lending market operates, operators do not have to use a commercial credit broker with an office in their town or even in their state. Communications including exchange of documents and contracts, can be carried out by brokers via electronic transmissions.

Yes. The commercial lending market is nationally focussed so the location of the goods and the buyer would not impact the interest rate or credit options available for the purchase. Using a broker in one state for sourcing funding for a purchase in another state is quite normal practice.

The type of credit products provided by individual brokers will vary with their areas of expertise and specialities. Some may focus on a single market such as asset acquisition while others will provide a full range of products. Credit products available include Chattel Mortgage, Leasing, Rent to Own., Hir Purchase, Overdrafts, Secured and Unsecured Options, Commercial Property Credit and special products such as Invoice Funding.

Yes. All kinds of enterprises are eligible to utilise the services of a commercial credit broker. Sole traders, owner operators and ABNs can contact a broker to source their funding requirements. In many instances this can be highly beneficial as brokers have contacts with non-bank sources that provide affordable options for one person operations.

Most commercial credit brokers will offer motor vehicle funding services. Commercial credit can be sourced for all kinds of work vehicles, new and used, which meet ATO criteria as assets. Brokers offer a range of products for vehicle funding – Chattel Mortgage, Lease and Commercial Hire Purchase.

The type of equipment that a commercial credit broker sources funding for, may vary. Some brokers may specialise in certain industry sectors while others will handle credit applications for all industries and all types of equipment. To be eligible for commercial credit products, equipment must be for use in and by the enterprise according to ATO guidelines.

Commercial credit brokers can offer very fast services in sourcing quotes and handling credit for their customers. They also provide the added benefits of access to more sources of credit to ensure the best solution available has been sourced. In approaching a banking institution directly and solely, the operator may be missing out on more cost-effective options available through a broker. The broker will also handle much of the paperwork and processes to save customers time in that regard.

Yes. Brokers that offer a comprehensive range of services will provide refinancing of many types of commercial funding. Operators can review the services offered by a broker to ensure they meet their requirements.

Yes. Commercial lenders operate on a national basis and so do the majority of commercial credit brokers. A broker for Sydney may be well-placed to handle a customer’s requirements in all states and territories in line with state and Federal requirements.

The calculator does not include lender fees and charges and does not assess the user’s credit profile and application details. Any offer or quote can be different from the results on the device.

All types of commercial credit products can be calculated with an online credit computation device.

Interest rates are based on lender approval. For the purpose of obtaining estimates, users can input the rates displayed by the provider of the computation device.

Yes. The device will provide estimates on the data entered. It does not differentiate between vehicle makes and models.

Yes. It can be used on devices with an internet connection.

There is no charge to use an online credit estimation device.

To reduce the estimate shown, the term can be increased, the balloon increased and/or the total amount reduced.

The device does not include lender fees or make assessments on the user’s profile. As such, the results are only estimates.

To compare Leasing and Chattel Mortgage, simply change the interest rate to the relevant amount while leaving all other values the same.

No. The device does not store the results. Users should make a note of results if they want to refer to them later.

This type of loan is not a specific loan type but a description of the entity applying for the funding. It is funding for operators that do not have all or any of the documentation or docs that are required in the standard commercial loan application form. Low doc generally means the applicant has some but not all of the required documentation.

When a lender approves a low doc application, the operator may then select the specific type of loan. The selection includes Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. The decision is made based on which best suits the structure and objectives of the operation.

A wide range of assets or goods may be financed with this type of loan. They include motor vehicles, cars, commercial vans, trucks and a wide range of equipment and machinery used by enterprises. New and second-hand goods may be financed.

No. It is not a requirement for this type of loan that the applicant be registered for GST. The GST status must be advised at time of application. Some lenders may view GST registration more favourably than applicants that are not registered. Enterprises with a turnover of $75,000+ per annum must be registered for GST.

Yes. All kinds of motor vehicles which are to be used in a business operation may be financed with this type of loan. That includes work vehicles such as dual cab utes and commercial vans, SUVs and all kinds of passenger cars.

The interest rate offered will be based on the individual assessment of the application by the lender. The creditworthiness of the entity and often the owner and/or directors forms part of that assessment. The better the credit rating may result in a better interest rate.

The security or guarantee required for this kind of loan will be dependent on the lender assessment of the application. Additional security – additional to the goods being purchased, may be requested by the lender. This may take the form of assets owned by the owner, a personal guarantee by the owner/director or other form as agreed between lender and borrower.

The conditions attached to this type of loan will depend on the review of the application by the lender. Conditions such as a maximum loan amount or additional security may be applied.

Yes. This type of loan is particularly applicable to new and start-up enterprises. These operations typically do not have all the financial records for a standard application as they have not been operating long enough to accrue such detail.

No. Bad credit loans are for applicants that have a poor or bad credit rating. These enterprises may have all the documents required to complete the application form. Low Doc applicants may have a good credit rating but not the documentation.

Doc or docs is the reference to documentation or documents in the lending sector. These docs encompass a range of records and documentation relating to the trading and financial position of a business. Specifically they may include BAS returns, bank statements, tax returns, annual accounts, profit and loss statements and similar.

All kinds of enterprises may apply for this type of funding if they do not have all the documentation required in a standard application form. These include sole traders, owner-operators, incorporated entities, partnerships, family enterprises and ABN-only holders.

When the full purchase price of goods is included in the loan total, this may be referred to as no deposit funding. The approval of the total loan amount requested forms an integral part of the application approval process. The approval of no deposit funding is based on lender assessment of the creditworthiness of the applicant and an assessment of the goods. There may be maximum limits placed on this type of loan. The applicant may reduce the amount requested by paying a deposit on the goods.

Lenders will adhere to their own individual guidelines when conducting credit checks as part of the application approval process. With less documentation to support this type of application, a credit check of both the business and the owner(s)/director(s) may be undertaken.

No. HP is a commercial financing product where the borrower owns the goods at the completion of the credit term.

Only the interest included in monthly HP payments is tax deductible. A tax benefit with HP is received when the asset is depreciated.

No. An ABN is essential to be eligible for commercial financing products but being registered for GST is not an essential criteria.

A wide range of new and used machinery and equipment may be financed with HP. The suitability of a credit product will depend on the suitability to the enterprise.

A balloon is a percentage of the amount requested in the loan which is set aside to be finalised in full after the final monthly HP payment is made. It is an option.

The interest rate for HP will be subject to lender approval of the individual application. In general terms, HP attracts competitive rates in line with Chattel Mortgage.

Yes. All enterprises with an ABN can apply for HP for motor vehicle acquisitions.

HP can be used for funding purchases of light commercial vans. New enterprises may not meet lender approval criteria and may seek No Doc and Low Doc options through specialist lenders and brokers.

Terms on HP agreements can vary from as short as 12 months up to 84 months, subject to lender approval.

Buyers can use an online calculator to compare repayment estimates on HP with Chattel Mortgage, Leasing and Rent-to-Own.

Where applicants do not have all the financials to meet lender criteria they may seek No Doc and Low Doc second hand vehicle funding through specialist lenders and brokers.

Second-hand vehicles may be funded with a choice of Lease, Rent-to-Own, CHP and Chattel Mortgage.

The tax treatment of commercial credit products varies. Repayments on Lease and Rent-to-Own are tax deductible. The interest part of CHP and Chattel Mortgage repayments is deductible. Chattel Mortgage and CHP have a tax benefit through depreciating the vehicle.

A balloon component is an available option on Commercial Hire Purchase and Chattel Mortgage second-hand vehicle funding.

Not necessarily. Second-hand vehicles are assessed as part of the application assessment process. The rates can differ from new vehicle funding but competitive rates may be achieved on second-hand models.

When lenders assess the second-hand vehicle they will ascertain the suitable rate and credit term for the funding and whether or not the vehicle is suitable security against the funding. This process applies to all types of second-hand vehicles. The condition and age rather than the type of vehicle would typically be more significant to the funding conditions offered.

Yes. Second-hand vehicle funding applications can be approved prior to purchase.

No. Commercial credit applications do not require the applicant to be registered for GST.

The credit term offered on second-hand vehicle funding is subject to lender assessment. Terms of up to 7 years may be offered.

Yes. An entire unit may be funded with the one credit product.

No. Lenders prepare rate offers based on an individual assessment of each application. The risk assessment impacts the rate offer. The assessment includes the credit history and rating, the business financials, the industry, amount of the loan and the machinery itself. This leads to variations in offers to different businesses.

The finance offer for a particular item of machinery will depend on the finance product selected and the specific details of the applications. Variations exist across the finance selection of Chattel Mortgage, CHP, Leasing and Rent to Own and with new and used goods. The credit rating and strength of the application will also impact to the offer. A quote should be requested for a confirmed offer.

Each application is assessed on its merits including for self-employed operators. Where a sole trader or owner operator has good turnover, good trading history and credit profile they can be made very competitive offers.

The rates vary across the commercial finance product selection. Chattel Mortgage and CHP attract the lowest. Leasing is typically slightly higher and Rent to Own the higher of the selection. This trend is uniform across the commercial lending market but rates vary with individual banks and lenders.

Lenders make their own decisions as to the pricing they will place on their finance products. Decisions are based on their analysis of the market, the economy and their own funding costs. Lenders that specialise in certain industries or for certain types of equipment may offer lower rates compared with lenders covering all industries.

Offers on asset finance vary across the commercial lending markets. Variations are seen in offers within the banking sector, when comparing banks and non-bank lenders and for different non-bank lenders. Lenders change their offers at different times as a result of their changing analysis of the market and their lending costs. Offers can vary for different business set-ups. Both the major banks and non-bank lenders can be more or less competitive at different times and for different applications.

An online calculator can be used to obtain estimated repayments on machinery finance. The user can input the rate advertised by the lender as a guide to what may be achieved. To obtain a specific offer, an application or request for a quote will need to be made.

The specific offer made on a specific machinery funding request will be dependent on the choice of financing product; strength of the application; credit profile of the applicant; industry sector; and condition of the machinery. Advertised rates may be used as a guide or a quote requested to get a specific rate offer.

Businesses without all the financials to meet the criteria for applications may seek Low Doc and No Doc options, primarily available via brokers. The rate offered for this type of funding can be competitive depending on the lender and the turnover. For some applications it would be expected that a rate higher than the best rate advertised would be offered.

Not necessarily. Offers can vary for businesses and for machinery purchases in different industry sectors. The variations can arise from the risk assessment of the sector by lenders. The rates offered will vary across the lending market. Lenders that specialise in a particular industry may be more competitive.

An offer is prepared by a bank or lender based on assessment of application and the asset being acquired. The rate can vary based on:- credit rating of the business; risk assessment of the industry; age and type of machinery; loan amount; and the lender guidelines and finance pricing.

Businesses may achieve a lower rated offer on finance by considering a number of options. These include:- improve their credit position by reducing debt; addressing any bad credit issues; reducing the amount of the loan by paying a deposit; and using a broker to access offers from more lenders.

Banks and lenders typically advertise their best current offers for high quality, good credit applicants and for new goods. Each application is reviewed individually and an offer made accordingly. Where the credit rating is less than good or other aspects of the application are identified as riskier, the offer may be different from the one advertised.

Not always. In general terms, offers for used machinery attract higher rates than new goods. The age and condition of the machinery will be assessed as part of the application process.

Most lenders will offer a fixed rate on asset acquisition finance. It would be less common to find a variable rate on Chattel Mortgage, Leasing, CHP or Rent to Own. A fixed offer means that is in place over the full term of the finance. It would not change in line with RBA decisions.

The loan options for buying an enterprise can vary depending on what is included in the sale. Some elements of the sale may be separated with different funding to achieve a more cost-effective outcome. Alternatively, buyers may apply for a comprehensive solution which includes goodwill, stock, equipment, fixtures and fittings, digital assets and all other inclusions.

The location of an enterprise being purchased would not affect the type of funding products suited to the acquisition. Where the operation being purchased is being offered as the security for the funding, the location may have an impact on the financing. The location of the operation may impact the risk assessment of the funding application. Lenders may assess the area in regard to the prospects for the operation and hence projected cash flow and the viability of the operation as suitable security.

The goodwill of an operation is not a tangible asset and as such may not be considered as suitable security for a secured funding product. When purchasing an operation as ‘goodwill only’ an unsecured funding product may be suitable. The strength of the cash flow is often considered by lenders when approving unsecured loans. Buyers may also consider a secured option and offer other forms of property or assets as security against the funds.

When purchasing a café, the type of funding most suited may depend on what is included in the purchase. It may include the goodwill, fixtures and fittings, digital assets such as the website and possibly larger items of equipment such as refrigeration, commercial stoves and other items. The type of funding may involve one secured funding package or several smaller credit products individually suited to different items. Effectively splitting the equipment and goodwill into separate funding.

The commercial lending market is extensive with both major banks and non-bank lenders active in the sector. A specialist lender in the area of funding ongoing operation purchases may be sought. Some lenders may specialise in financing specific industries such as hospitality while others may have a broader offering. Buyers may choose to engage a specialist broker to assist with the funding.

When purchasing an operation and the premises, buyers may have a number of options in regard to funding arrangements. Lenders may be in a position to include the entire purchase into one funding package or it may be seen as more cost-effective to split the operation and the premises into two separate contracts. Property funding may be more attractive for the premises and a secured commercial product for the operation.

The security required on commercial financing to purchase an ongoing operation will be subject to lender approval. The operation itself may be considered suitable security. This may be assessed on the strength of the cash flow. Buyers may also consider offering other property or assets as collateral for the funding.

Where a purchase of an operation is an initial venture, the personal credit history and financial position of the buyer would usually be assessment in the application approval process. The strength of the cash flow of the existing delivery operation would form an integral part of the approval process. Should both be considered acceptable, a secured commercial financing product may suit the acquisition.

When purchasing an operation with vehicles under current financing arrangements, the current leasing entity would need to finalise the funding contract prior to purchase. The buyer could then take on a new funding arrangement for the vehicles. Where transferring a current vehicle lease to another party is requested, buyers should engage the advice of a specialist in commercial motor vehicle lending.

Yes. When purchasing an ongoing concern with strong cash flow, the buyer may put up the operation as security against the funding for a secured commercial product. Acceptance of security as suitable would be subject to lender approval.

Buyers of heavy duty vehicles can select from Rent-to-Own, Leasing, CHP and Chattel Mortgage for their funding.

Interest rates on heavy duty lending are primarily determined by the profile and details of the applicant rather than the vehicle. The exception being with used vehicles where the age and condition of the vehicle are considered.

Where a new operator does not have all the documentation required to meet lending criteria for many banks and lenders, they may seek low doc and no doc options for more competitive options.

The term on heavy vehicle funding is subject to lender approval but 7 years is a typical term for this type of credit.

The type of credit facility rather than the specific enterprise set-up will determine the tax deductions. With Chattel Mortgage and CHP the main deductions comes from depreciating the vehicle. With Lease and Rent to Own the monthly payments are deductible. These deductions apply to all set-ups approved for this type of funding.

Comparing repayments on Lease with Rent to Own can be done using an online calculator. The results are only estimates and to be used as a guide only.

Not always. The age and condition of a used KW model will be considered by the lender when preparing a rate offer. In general terms, used vehicles may attract a higher rate than new vehicles.

A balloon is the part of the total credit with CHP and Chattel Mortgage that is set aside for payment in full after the final repayment is made. It is optional.

An online calculator does not allow for the fees and charges applied by lenders or for individual variations with applicants. Any quote or offer received can be different from the result ontained using a calculator.

No. For all commercial funding, GST registration is not an essential requirement.

No. Every application for commercial credit is assessed individually by lenders. The assessment includes of the credit profile, the turnover, assets and liabilities, financials and trading time. The amount requested is also considered when assessing applications. The risk assessment of individual operations will lead to variations in rates offered.

Heavy vehicles can be purchased with Chattel Mortgage, Leasing, Rent to Own or Commercial Hire Purchase. The interest rates on these products do vary. The rates for new and used heavy vehicle funding may also vary. Buyers can use the advertised lender rates as a guide to the best rates available at any particular time.

The credit profile and inclusions in the application will be assessed by lenders. Where a self-employed operator has a good credit score and meets certain lender criteria, competitive rates can be offered. Lenders may request self-employed operators offer guarantees against funding. The collateral or security offered may influence the rate offered.

Secured credit products typically attract lower rates than unsecured credit products. Security may be the goods being purchased or other collateral. As the lender has this security, the risk may be rated as lower than for unsecured products. With asset acquisition products, Chattel Mortgage and Commercial Hire Purchase attract lower rates than Lease and Rent to Own.

The format and structure of commercial credit products contribute to the scale of rates. The different format between Chattel Mortgage and Leasing results in different rates on these products across the market.

Rates on commercial credit vary across the market with both banks and non-bank lenders active in the sector. Banks can be extremely competitive with many credit products. In other aspects and areas, non-bank lenders can be more competitive. Some non-bank lenders will specialise in particular sectors such as construction, mining or heavy vehicle funding. This specialty can result in better rates for those purposes. Rates across the lender market can also vary at different times due to varying outlooks for the economy and monetary policy. To obtain the best rates, operators may benefits from a comprehensive coverage of the market.

Buyers can use an online credit calculator to calculate repayments at different rates for new car purchases. The rates offered to individual applicants can vary. Buyers can use advertised rates in the calculator as a guide to assist with purchase decisions.

Lenders will assess commercial credit applications individually to arrive at the rate they will offer on a particular funding requirement. To obtain an accurate and exact rate that an operator may be offered a quote or application would need to be requested.

Yes. The interest portion of commercial credit repayments is treated as a business expense in most instances. Operators should confirm individual requirements with the ATO or their accountant.

No. Lenders may offer varying rates on funding based on the industry sector. This is due to the risk assessment of lending to that sector. This approach can vary from lender to lender. Some lenders will specialise in lending to operators in certain industries. This may result in better rates.

The interest rates offered on commercial credit are determined by individual assessment by lenders. The lender’s criteria and guidelines will form an important part of the assessment. The credit profile of the operator is considered, along with the strength of turnover and financials documentation provided. The age and condition of the goods being purchase also impacts the rate. The amount requested can also impact the rate depending on the risk assessment of the capability of the operator to furnish that amount.

To achieve an affordable interest rate on funding, operators can consider a number of options. Improving their credit profile may be addressed as can improving balance sheet by reducing debt levels. Reducing the credit amount requested may result in a cheaper rate. Engaging the services of a broker may assist in connecting with lending sources that offer lower rates.

The interest rates displayed by lenders online are typically the best rates available at that time. Unless specified, these rates will be for brand new assets and be offered to enterprises with a good credit rating. Every application is assessed individually and an applicable interest rate offered. That rate may differ from the best rate advertised by the lender.

Not necessarily. Banks can be extremely competitive with interest rates on commercial finance. When approving applications, banks will have guidelines and criteria to adhere to. These may be not variable and be applied equally to their existing customers as well as non-customer applications. Applying to the current bank where transaction accounts are held may offer an advantage of the bank having quick access to some financial information. However, there may not be added advantages. Other banks and non-bank lenders may offer better rates.

Most commercial credit products are arranged with a fixed interest rate. This rate will remain the same over the full term of the funding, regardless of RBA decisions. Some products, such as Overdrafts, may be arranged at variable rates which would be subject to change.

When a property is purchased prior to the funds from the sale of an existing premises being available, interim funding may be required. This type of funding effectively covers the time gap between the proceeds of sale being available for a new purchase.

The interest rate on interim funding is individually assessed and offered. It can vary depending on the lender, the equity levels, deposit, amount requested and the term required.

Interim funding is used for various purposes including:- when a timeframe between the purchase of new premises and sale of existing premises is required to allow for relocation; when building new premises and needing to cover both new and existing loans; and in delayed settlement circumstances.

Interim funding may be approved for new builds and existing properties. They may be commercial units, factories, warehouses, retail spaces and other properties used for business operations.

The approval criteria will vary with lender guidelines. A deposit of minimum around 25% may be requested but 100% loans can be approved. Proven evidence of the sale of a property may be requested. Equity in the existing property is typically required.

Rates on interim funding may be fixed or variable depending on the lender.

Interim property funding is typically a short-term solution. It may be required for 6 months or less or up to 12 months.

Equity in the existing property and proof of the sale of the property is typically required for interim funding. An end debt may be required by lenders.

100% interim funding may be approved by some lenders for some applicants. Typically a 25% deposit would be required.

Yes. When building new premises and furnishing finance commitments on both the new build and existing property, interim funding may be sought to cover the construction commitments.

The commercial lending sector typically uses the term ‘equipment’ to describe physical assets. That can include machines, plant, devices and other physical goods for a commercial operation. In the health and medical setting, financing is available for the full range of assets that a practice may require. That includes the diagnostic machines and treatment devices, as well as IT and the furnishings and fit out fixures for the facility.

When applying for commercial credit, applicants are required to provide financials on their operation. Some lenders also have a criteria of a minimum, trading period for approvals. Where a new practice does not have the full financials or does not meet all the criteria, they may see no doc or low options through specialist lenders and brokers.

The interest rate varies for the different commercial credit products. The rate offered to individual applicants can also vary. Lenders assess each application and make their rate and lending offer based on their assessment. The rates advertised by lenders will generally be for new goods and for good credit applicants.

Asset acquisition financing products include Chattel Mortgage, Lease, CHP and Rent to Own. The features of these products vary in regard to suitability to the cash or accrual accounting method, approach to the balance sheet and treatment of taxation and GST. The best option for an enterprise will be the one that meets their objectives and is in line with their approach to tax and accounting.

Yes. Financing is available for the purchase of IT systems for the medical and health profession.

The tax deductible elements of credit products vary. Rent to Own and Lease have tax deductible payments. With Commercial Hire Purchase and Chattel Mortgage, the asset is depreciated in line with ATO schedules. The amount of the annual depreciation is a tax deduction.

Yes. All practitioners and providers in the health and medical sector can apply for financing for their machines and other goods. Physiotherapists may require financing for treatment tables, exercise machines and other goods.

The interest rate on Chattel Mortgage, Lease, CHP and Rent to Own is typically at a fixed rate. The rate remains unchanged over the term of the credit.

The term approved for individual commercial credit applications is subject to lender guidelines. The goods being acquired would form part of the application assessment. Terms of up to 84 months can be approved for some acquisitions.

With commercial asset acquisition funding, the goods being acquired are the primary security against the funding, subject to lender approval. Some applicants may be requested to provide additional collateral by way of property or other assets.

Operators can select from Chattel Mortgage, Leasing, CHP and Rent-to-Own to fund machine purchases. The most suitable option is the one that best matches the entity structure, balance sheet approach, accounting methods and commercial objectives.

The interest rates vary with different credit facilities. The rates offered to individual entities can vary as the offer will depend on the lender assessment of the application.

When purchasing attachments with a digger, operators may request that both expenses be included in the one loan. This is subject to individual lender approval guidelines.

Terms of up to 7 years can be achieved for machinery funding.

The tax deductions vary with the type of credit. CHP and Chattel Mortgage provide tax deductions through depreciation of the machinery. Rent-to-Own and Lease have tax deductible repayments.

Where a sole trader has full financials and meets the criteria in regard to turnover, trading time etc, they can be approved for funding under the standard application form and procedures. Where all the criteria is not met, they may seek lenders that offer no doc and low doc options.

An online calculator can be used to work out estimated repayments for different machines and with varying terms and loan amounts.

Yes. Applications for funding can be approved prior to purchase and based on an estimated amount required. The offer or quote would be amended when the specific details are known after purchase.

No. Commercial funding products have a fixed interest rate which remains unchanged over the complete credit term.

Commercial credit products allow for the machinery to be the security for the funding. With some applications the lender may request additional collateral be provided by way of property or other assets.

Bad credit is a description of the enterprise which is applying for funding. It is not a credit product. When an enterprise with poor credit is approved by a lender, they may have access to the full range of commercial funding products. The selection includes asset acquisition products – Chattel Mortgage, Leasing, Rent to Own and Hire Purchase, as well as secured and unsecured products, overdrafts and others. Lenders may in some circumstances stipulate which products they will approve for enterprises with poor credit.

When lenders assess funding applications for enterprises with credit issues, they may include a review of the owner’s situation also. This may especially be expected with smaller enterprises. Where an owner has a good rating and can provide acceptable guarantee or collateral, this may contribute to a better interest rate or less stringent conditions being applied to any offer made.

When preparing quotes and offers including the interest rate, lenders will assess each application individually. This includes for enterprises with both a good and a bad rating for credit. There are not typically specific rates advertised by lenders for applicants with credit issues. Each is considered individually. The rates advertised by lenders will be for applicants with good ratings. Those with a bad rating would need to request a quote or submit an application to obtain information on the interest rate applicable to their vehicle funding.

Major banks may reject applications based on credit issues due to their strict operational structure, guidelines and criteria for approvals. There are non-bank credit providers that do consider applications with credit problems. Those requiring this type of funding may seek the services of a broker to assist in sourcing the appropriate credit providers and handling the negotiations.

There are ways in which credit problems can be resolved and ratings improved. Sources such as Moneysmart provide information for individuals on fixing credit problems. Over time, a better record of making payments on time may be developed which may improve the rating. Reducing debt levels may reduce the risk level as assessed by lenders and attract a better offer.

No. Low Docs and No Docs refer to applicants that do not have all the documentation that is required in completing the credit application form. These applicants may have a good credit rating or score. The rating considered may be for the enterprise or the personal rating of the owner. An applicant with credit issues may have all the documentation.

The reference to security is the guarantee or collateral attached to the funding. It is security from the perspective of the credit provider not the borrower. A secured product will typically be secured primarily by the asset being funded. Additional security may be required with some applications. An unsecured product is not secured with a physical asset or with the goods, services or other purpose of the funding. Security may be requested for unsecured products via personal guarantee or other property.

To achieve a better interest rate offer, applicants with credit issues may consider a number of options and actions. They may take steps to improve their rating by fixing any errors which appear in their credit report. They may take steps to reduce debt levels by paying off existing commitments including credit cards. This may improve the assets-liabilities balance sheet. Additional guarantees or collateral may be offered. The lending market may be explored to consider options available through a range of credit providers. Applicants may seek the assistance of broker services to source better interest rates for credit products.

Unsecured credit products are typically used for expenditures, purposes and purchases which do not involve the acquisition of physical assets. Or where an asset such as equipment or motor vehicle, is not considered suitable security for a secured credit product. A Business Overdraft may be used for similar purposes as an unsecured credit product. This may offer an alternative option for consideration.

An unsecured credit product is not secured by the purchases for which the credit was obtained. This is due to the purchase not being a physical asset or is considered unsuitable. But collateral may be requested by lenders for this type of product. Collateral may be provided in the form of a personal guarantee by the owner or by property or assets owned by the enterprise or the owners. The specifics of the collateral would be discussed based on the individual application.

The expenditure or purpose for an unsecured credit product may include those associated with business development. They may include undertaking staff training and development, installing systems that are not suited to asset funding, implementing sales and marketing campaigns and research and development costs associated to develop products, amongst others. The approval of the credit is subject to individual lender decisions.

The circumstances or reasons how an enterprise came to have credit problems may be taken into account when the credit application is assessed by a lender. Being open and honest about how the situation came about and what actions have been taken to rectify the situation may assist with the application. Lenders may specifically request further information and explanations.

Where an enterprise is facing credit problems due to being laden with debt, seeking funding to consolidate debt may be considered. Application may be submitted for a single unsecured funding arrangement to pay out the existing debts into one. This may ease cash flow pressures and assist the enterprise to improve its rating. Lenders that provide this type of funding service may be sourced with the assistance of a broker.

Refinancing is available across all commercial funding products and is sought to address a number of requirements. Where funding was secured based on poor credit issues the interest rate would likely have been higher than for an application with a good rating. If the credit problems have been resolved or improved, the enterprise may consider applying for refinancing to achieve a better interest rate. Refinancing involves a new funding arrangement and fees would be incurred for finalising the existing arrangement early. The decision as to whether the solution offers a cost-effective option would need to be considered by the operator.

Commercial credit brokers and accountants offer different services. The services of an accountant centre primarily on doing the accounts, preparing BAS and tax returns and other similar tasks. They may also advise on the type of credit products best suited to their clients. The services of a broker are to source and structure funding to meet specific requests and requirements. Accountants are not typically licensed credit providers and do not usually have the accreditations with banks and lenders to source funds for clients. In some cases, accountants do represent clients in contacting their bank re lending.

No. Commercial lending brokers can be directly approached by operators to use their services. A referral is not required from another party.

Some advisors may also provide broker-style services. But by definition and by the services provided, the roles are different. An advisor typically focuses on advising individuals and firms on investments, structuring superannuation and other ways to utilise existing funds. A lending broker sources funding to cover acquisitions and other purposes.

The role of the commercial credit broker is to source the best solution for the client and represent the client in dealing with lenders. Brokers have access to more than just the one bank. They may have access to more than 80 banks and other non-bank lenders. This provides them with the resources to source the lowest interest rate and more suitable funding from across more options. Brokers also have specialist knowledge and can save clients a lot of time.

Attending the offices of a broker is not generally required in order to use their services. Operators do not have to use a broker in their town or region. Clients can select a commercial lending broker that provides services by phone and online. This enables all communications including submitting applications, discussing requirements and transfer of contracts and quotes to be carried out electronically.

Yes. Commercial lending is national and funds can be easily sourced for purchases being made interstate. The type of credit products and the interest rate that would apply are not impacted by where the vehicle is sourced. The age and condition of the used vehicles would come into consideration. Tax rulings regarding commercial credit are a Federal concern and the same for operators in all states and territories.

Individual brokers may specialise in certain areas which may impact the specific products they offer. Brokers can provide a wide range of commercial credit products including Leasing, Chattel Mortgage, Rent to Buy, Hire Purchase, Secured and Unsecured Credit, Lender Overdraft, Commercial Property Funding as well as specialist options such as Invoice Funding.

Yes. As long as an operator has an ABN, they are eligible to apply for commercial credit and use a broker. Many small and sole operators can benefit even more from using a broker as they do not usually have as much leverage with banks and finance companies as larger concerns. Freelancers without all the financials may also require a broker that offers no docs options.

The specific types of machinery that an individual broker may source lending for, can vary. Some brokers may specialise in specific industries or equipment categories such as heavy equipment or heavy vehicles. Others will source lending for all types of equipment used in an operation across all industries.

Yes. Brokers can handle all types of commercial funding requests, depending on their individual service offering. Selecting a broker that offers a full range of services and with experience in the specific industry can be of great benefit.

Support for the flow of cash in an enterprise may be secured with a line of credit, overdraft or secured or unsecured credit products.

An overdraft is a fixed amount of credit which is available to an enterprise for a certain timeframe. The credit is available in their bank account to be used when required. Interest is charged only on the amount of funds and the time used.

Interest rates on commercial credit products are offered based on an individual assessment of the enterprise. Rates can vary across the options of overdraft, line of credit and secured and unsecured loans.

Interest charges on credit and lender fees and charge are typically treated as tax deductions.

Support for the flow of funds through an enterprise can be sought to deal with unexpected events; purchase inventory; address seasonal income issues; deal with slow paying customers and other reasons.

All types of enterprises with an ABN can apply for commercial credit. Individual applications are assessed by lenders for approval.

Some applicants may be approved for a line of credit based on turnover or assets. Some may be required to provide additional security such as assets or property.

Yes. The purchase of stock to be on-sold, is considered a reason for applying for a line of credit.

Yes, subject to individual lender approval.

Yes. Growers and agri producers typically require a line of credit or overdraft to address the timing associated with receiving income from seasonal produce.

A letter of credit is a funding product. Producers apply to lenders to provide the equivalent of a bank guarantee to overseas suppliers. The letter of credit advises the supplier that payment for their goods is backed by a reliable third-party lender. Based on that assurance, the supplier can proceed to produce the order.

Yes. Working capital for exporters to cover the costs of producing and manufacturing goods for the export market. When approved for funding, the company provides the customer order details to the lender and the capital is provided to cover the costs. When the customer pays the supplier, the company repays the funding.

Yes. Banks and specialist non-bank lenders provide working capital facilities to assist exporters meet the expenses associated with the manufacture of goods for export orders.

The interest rate applicable to working capital for importers and exporters may be fixed or variable, depending on the specifics of the funding and the lender. The rate will be dependent on the type of credit product, the timeframe, risk assessment and other specifics of the arrangement. Rates are based on individual quotes.

Asset-backed funding is capital which is backed by security provided by assets of the company. Capital for exporters and importers may be accessed through providing collateral against the funds. Assets may include property, equipment and other similar assets.

When funding is approved, companies provide the lender with the supplier invoice. The lender either provides the funds to the company to forward to their supplier or pays the supplier via international funds transfer directly.

Yes. Companies new to importing can apply for funding through banks, brokers and non-bank lenders. Funding is advanced to prepay for shipments from overseas suppliers. A range of credit options are available.

An advance for importers is the provision of funding in advance of receipt of goods from an overseas supplier. The lender advances the funds to enable pre-payment of goods so the supplier can prepare and ship the order. International suppliers usually require payment ahead of shipping.

As with all commercial credit, the security required for funding is dependent on the assessment of the application by the lender. Some funding may be secured based on the goods being funded. Some funding products can be backed by assets held by the company.

The terms of working capital and import-export funding will be structured in line with the company’s requirements. Some are short-term funding arrangements where the company repays the funds on receipt of payment from their customer or on the sale of the goods. Repayment schedules are arranged to meet lender and customer requirements.

A loan approval based on holding an Australian Business Number can apply to any operator that does not meet all the criteria for approval by some banks and lenders. This may be due to not having full documentation, turnover below threshold, debts about threshold, balance sheet unacceptable, not trading for long enough and not presenting evidence of the viability of the operation.

The non-bank lending sector typically drives the availability of funding for operators with a poor rating. Approval is subject to individual lender guidelines. Operators may seek assistance from a broker to connect with the most suitable lender.

All interest rates on commercial funding are offered based on the lender assessment of the application. Applicants with poor or bad scores and rating may expect a rate that is above the best rates advertised by lenders. A quote request would need to be submitted to obtain a specific rate.

Some lenders may request applicants with poor ratings to provide additional collateral as well as the assets being funded. Security may be provided with other assets, property or personal guarantee.

When approved for funding, all operators can realised the tax deductions pertaining to the credit product selected.

Motor vehicles may be funded with Chattel Mortgage, Commercial Hire Purchase and Leasing. Once an application is approved, operators may select the product which best suits their structure, objectives and approach to balance sheet and tax.

Yes. Applications for a guesstimated credit amount may be submitted and approved before the machinery purchase or commitment to purchase is made.

Yes. A balloon is the amount set aside to be finalised after the last monthly repayment is made. The percentage allowed may be subject to lender approval.

GST registration is not a pre-requisite for credit approval but some lenders view GST registration favourably. Enterprises with income over $75,000 must be registered for GST. Below that threshold GST registration is optional.

Operators may apply for financing for all types of plant, machinery and equipment both new and used. Lenders may apply limits to the total credit amount based on their assessment of the application.

Commercial Hire Purchase is arranged with a fixed interest rate. The rate is fixed for the entire term of the finance. The fixed rate does not change with fluctuations in interest rates as a result of Reserve Bank monetary policy decisions.

All kinds of ventures can apply for this finance option. The suitability of a particular finance product for a venture depends on the financial objectives of the commercial enterprise, the approach to the balance sheet, the accounting method used, and overall objectives.

Where an enterprise does not have all the documentation and financial records to complete a finance application form, they may seek Low Doc and No Doc finance. These are descriptions on the application not a specific loan option. Once approved by a lender for a No Doc loan, the entity may select Commercial Hire Purchase or another kind of loan.

Yes. This loan product is suitable for the purchase of many types of commercial assets including motor vehicles. Both new and used cars of all kinds can be financed with CHP.

Deciding which is the most suitable loan product for a venture depends on individual aspects of the enterprise. These include the general and financial objectives; the method of accounting; the approach to the balance sheet; treatment of GST; approach to tax; and others. Business owners are encouraged to speak with their accountant to discuss if CHP is the most appropriate loan product for their operation.

If a venture with bad credit is approved by a lender for finance, they may have their choice of loan products including CHP, depending on lender approval.

Yes. Hire Purchase is a versatile commercial loan product which can be used for a wide selection of assets including excavation and earthmoving equipment, machinery used in civil works, construction and related industries. The suitability of the loan type is primarily dependent on suitability to the commercial structure not the asset being acquired.

Commercial Hire Purchase can be used by entity that use either the cash accounting method or the accruals method of accounting. The cash accounting method is widely used by Australian businesses. It accounts for income and expenditure at the time of the transaction. The accruals method accounts for accounts receivable and accounts payable at the time the invoice was issued or received.

No, deposit finance is where the full purchase price of the goods being financed is included in the loan amount. For Commercial Hire Purchase as with other loan products, the total loan amount is subject to lender approval.

A finance calculator can be used to compare estimated repayments on different goods and for different finance products. The interest rates differ with the range of loan products. When using a calculator to compare products, enter the relevant interest rate while keeping the other values constant. An online finance calculator provides estimates only and is not a specific quote or offer.

No. With this kind of finance, the GST on the asset purchase price is claimed on the corresponding BAS return following purchase. With the full amount of GST claimed, no further GST is applicable to be charged or claimed. GST is applied to the loan repayments.

The balloon is a set portion of the loan amount which is set aside for payment in full at the end of the loan term. The balloon may be paid in a lump sum by the business or a new loan applied for to refinance the amount.

Finance terms offered on CHP may depend on the lender. Some lenders may have maximum terms, others may be more flexible. A finance term of up to 7 years can be sought. The length of the term is subject to lender approval and forms part of the application assessment procedure.

Brokers provide a range of services which may vary. The general role of a commercial credit broker is to source funding for clients from across their lending network. This typically includes source the most suitable lender and quote, handling negotiations with the lender to agree to the terms and conditions requested by the client, finalising the contract and arranging settlement.

The access provided by individual brokers may vary. Some may operate primarily in their local area while others offer national access. Dealings are conducted electronically, allowing access to anyone with online access. Applications can be lodged online and documents and contracts exchanged electronically.

Yes. The same funding products apply nationally. The interest rate applicable to credit is based on the application and the goods being purchased. The location of the goods and the buyer would not impact any funds offer or the ability of a broker to handle the deal.

Brokers may have a special industry focus, but most will offer the same credit products. These include Lease, Hire Purchase, Rent to Own, Chattel Mortgage, Overdraft, Secured Credit and Unsecured options.

No. Most operators with a commercial venture operating with an ABN can use a broker. That includes micro operators, SMEs, sole traders, owner operators and those operating with an ABN only.

Even operators that have had applications rejected by a bank can contact a broker to source a credit option. Brokers often have connections with non-bank lenders that provide options for those with poor credit or without financials.

Some brokers may specialise in sectors such as mining while others will source funds for all types of equipment for all kinds of industries. There are non-bank lenders that do specialise in areas such as mining and these can be accessed via a broker.

Due to the way brokers operate, they have systems in place to source quotes quickly and get applications approved quickly. The services of a broker can save operators a lot of time compared with sourcing finance themselves. The complexity of an individual application may impact the time take to get approval.

Yes. Brokers offer comprehensive services including refinancing existing credit arrangements. They can access quotes from across many lenders to secure the most workable arrangement.

No. Most brokers offer online services and handle applications and approvals by phone and electronically. There should be no necessity to attend the offices of the broker for an interview. Documents can be exchanged electronically.

When acquiring new assets, enterprises have a choice of Commercial Hire Purchase, Leasing, Rent to Own and Chattel Mortgage for their financing. These vary with rates, tax deductions, approach to balance sheet and accounting measures.

Interest rates vary with commercial lending products and with different applicants. Lenders typically advertise rates applicable to new assets for enterprises with good credit. The rate offered to individual applicants can be different from those displayed.

New enterprises just starting our may not always meet the criteria and guidelines for approval by some banks and lenders. If not, they may seek no doc and low doc options through specialist lenders and brokers.

Some lenders will approve commercial credit applications without full financials. Some non-bank lenders do approve funding based on turnover or when additional collateral is supplied. Using a broker may assist in connecting with these types of loans and lenders.

Tax deductions vary with the credit product selected. Lease and Rent to Own allow for the repayments to be fully tax deducted. With CHP and Chattel Mortgage, enterprises can realised a deduction on tax through depreciating the machines under finance.

A wide range of assets required by operators in the baked goods industry may be acquired with commercial credit. This includes the machines to mix, prepare and bake the goods as well as the storage and display requirements. IT and other requirements may also be financed.

Yes. Financing for used machines is available with the same credit products as for new machines. The interest rate and terms and conditions may vary with used compared with new goods.

Yes. Shelving, storage and display units can be acquired with commercial credit products.

The terms for commercial credit are subject to lender approval. In the asset area, terms of up to 7 years may be approved for big ticket items. Applicants can discuss their specific requirements with a broker or lender.

Yes. When purchasing machines at auction, operators can use a credit calculator beforehand to get estimated repayments to use as a guide. Applications for funding can be submitted, offers received and applications approved prior to purchase.

Yes. This specialist category of credit is provided for operators such as sole traders, self-employed, small traders and others that do not meet the standard credit criteria.

New and start-up operators may apply for commercial van funding based on holding an Australian Business Number.

The minimum requirement for commercial credit applications is to hold an Australian Business Number. Operators should provide what financials, accounts, turnover figures, cash flow and balance sheet information they have to support the application.

Yes. Being registered for GST is not essential to be approved for commercial motor vehicle finance. But some lenders consider GST registration more favourably as it may indicate turnover in excess of $75K pa.

Yes. Commercial motor vehicle funding is available for both new and used vehicles.

Yes. A balloon is an option with Chattel Mortgage and Commercial Hire Purchase.

Some lenders will approve commercial vehicle credit applications based on turnover for a 6 months period. Operators may need to seek specialist non-bank lenders and/or the assistance of a broker to source these lenders.

When a credit application is approved, operators may select from the range of funding products which includes Lease, Chattel Mortgage and CHP.

Interest rates on all commercial motor vehicle credit are offered based on the lender’s assessment of the application. Rates vary with the loan product and for individual applicants. Rates displayed by lenders will typically be for new vehicles, for applicants with good credit and full documentation.

Yes. Vehicle leasing is one of several credit products available to fund the purchase of commercial vehicles.

The security required for an individual motor vehicle credit application will be subject to lender guidelines. Lenders assess each application individually. Some applicants may have the vehicle as the sole security while others may be required to provide additional security.

Once approved for funding, operators can realise all the tax benefits applicable to the funding product selected.

Commercial lending brokers provide a wide range of assistances and services to operators. The range of services may vary with different brokers but many offer a complete credit sourcing service. This can include sourcing quotes from across many lenders, dealing with negotiating rates and conditions, handling the paperwork and liaising between lender and client through the entire process.

Yes. Most brokers operate primarily by phone, email and utilising online resources. This provides access to services to enterprises across the entire state and nationally. In person interviews are rarely required as documents, applications and other paperwork can be handled electronically.

Many brokers operate at a national level so where goods are located and where the buyer is located do not have a bearing on the credit products and services available. It is quite acceptable the usual process to use the same broker for credit for purchases in many states and territories.

A commercial credit broker may offer a full selection of credit products for many purposes or may specialise in a particular area. Products available through brokers include for buying assets such as cars, equipment and trucks and general commercial credit including overdrafts, secured and unsecured credit and specialist options such as Insurance Premium Funding.

Yes. All kinds of set-ups and sizes of enterprises can use brokers to source commercial funding. This includes ABN holders, sole traders, owner operators, SMEs right up to large corporate concerns. Some brokers will offer access to non-bank lenders that provide options for operators without financials.

Most brokers will offer services to source business vehicle funding. The applicant must have an ABN to be eligible for commercial funding and the vehicle must meet ATO guidelines as business asset. The credit products for vehicle purchases included Leasing, Chattel Mortgage and Commercial Hire Purchase.

Yes. Most brokers offer equipment funding solutions. The industry and type of equipment may determine the most suitable broker. Some brokers do specialise in particular industries. Finding a broker that offers services for equipment in all industries may suit the purpose.

When sourcing finance themselves, many operators can face a time-consuming process to contact many lenders to obtain sufficient quotes to identify the best option. Brokers can quickly access many lenders and obtain the most suitable option much faster.

Yes. Most brokers will handle refinancing deals for all types of existing credit arrangements and purposes. Reviewing the services provided by specific brokers can confirm they have the capabilities to handle the requirements.

Many brokers will provide services across all states, regardless of where their own offices are located. Banks and other lenders offer nationally-based credit products and the same interest rates and products are available. So there should be no issues with the same broker handling commercial funding across multiple states.

Operators can select from Lease, Rent-to-Own, CHP and Chattel Mortgage to fund commercial heavy vehicles.

Interest rates on commercial funding are based on an individual assessment of the application. Rates advertised by lenders will typically be for good credit applicants with full financials and for new vehicles and may be used as a guide for planning.

Operators without all the financials and that do not meet all lender criteria may seek lenders and brokers that offer low doc and no doc options.

The term approved to an individual applicant will depend on lender approval and guidelines. Terms of up to 7 years can be offered on heavy vehicle funding.

Treatment of tax varies with the different credit products. Repayments on Lease and Rent-to-Own are fully deductible. The interest portion of repayments is deductible for Chattel Mortgage and CHP. CHP and Chattel Mortgage realise a deduction through asset depreciation.

Where vehicle funding is secured with a fixed interest rate, that rate will remain unchanged over the credit term.

A credit calculator does not include fees and charges and does not make allowance for variations in credit profiles and applications. The results obtained on a calculator are for use as a guide only and any offer can be different from that result.

The balloon with CHP and Chattel Mortgage is the percentage of the credit total due for payment at the end of the term.

A calculator can be used to compare estimates of different credit products.