Frequently asked questions
Business Finance FAQ’s

No. When an applicant has no financials they are considered under the category of application without financials. This is not a specific credit product. It is a description of the application. When approved, applicants may choose the product from the portfolio offered.

Not all self-employed operators may require lite doc funding consideration. Where they have been trading for over 12 months, they may have all the financials required to complete the standard application form.

All applicants for commercial funding must have an ABN but being registered for GST is not essential. Applicants should provide whatever financials and accounts records they have accrued to support their application.

Yes. When approved for lite doc funding, an operator may select Leasing if it is considered best-suited to meet their objectives.

All types of assets including plant and machinery, to be used in a commercial operation may be suited to commercial credit approval. An assessment of the machinery being acquired forms part of the application approval process.

Interest rates on all commercial funding applications are offered based on the lender assessment of the application. Lite doc applicants can be offered competitive rates through selected specialist lenders.

No. Registration to pay and claim GST is not an essential requirement for any commercial credit application form. Registration can be considered in a favourable light by some lenders.

The quantity of financials and other records provided in an application will determine if the applicant is considered for a no or a lite doc option.

Security required for all commercial funding is based on lender guidelines. In some cases the goods being acquired may be the only security required. For some applicants, additional collateral may be requested. This may be in the form of other property or assets or a personal guarantee.

Yes. When approved, applicants for all commercial funding are entitled to the tax deductions and other benefits for the credit product selected.

Chattel Mortgage, Leasing, Rent to Own and CHP are available for lite doc applicants. The best option will be the one which is best suited to the accounting practices, balance sheet approach and objectives of the operation.

There are lenders that will approve lite doc applications based on turnover figures over a 6 month period. Operators may use a broker to connect with these lenders.

Yes. Applications can be approved prior to purchase. The loan amount can be estimated. An indication of the goods to be acquired will be required.

Lite doc financing may require a selection of records including tax returns, BAS statements, turnover, cash flow, annual accounts and similar.

Yes. Start up and new enterprises usually do not have all the documentation as requested. There are lenders that will approved funding for operator starting out. Additional security may be requested.

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.

An online calculator only provides basic estimates. They do not include lender fees and charges or differences in user’s credit profiles. A quote can be higher due to the functionality of the calculator.

HP is a credit facility for buying heavy vehicles and other assets.

HP rates are comparable with Chattel Mortgage with specific rates subject to lender approval of individual applications.

No. Only the interest portion of the repayments is a tax deduction. A tax deduction with HP is realised when the vehicle is depreciated.

No. The full amount of GST applicable to the purchase is claimed directly after purchase. No GST is applied to repayments.

An HP balloon is a set percentage of the loan total which is due for payment as a lump sum after the final repayment is made.

Yes. HP can be used to fund all types of heavy vehicles including EVs and hydrogen cells models.

Using a calculator allows buyers to compare repayments on HP with Leasing.

Yes. Used vehicles can be funded with the choice of commercial credit facilities including HP.

Including the full purchase price in the loan amount is a commonly used practice. It will be subject to lender approval of that total amount in relation to the operator’s credit profile.

New operators requiring commercial credit to purchase a heavy vehicle may not have all the financials requested by some lenders for approval. They may seek no doc and low doc options through specialist lenders and brokers.

The minimum requirement for commercial credit is to hold a current ABN. Other documentation around the financials of the operation are preferred. Where no documentation is available, operators may seek no doc options.

No. Registration for GST is not an essential requirement for approval for commercial credit but may be viewed favourably by some lenders.

When a new operator is approved for credit, they may request a balloon component in the funding. This is available on Chattel Mortgage and Commercial Hire Purchase.

New operators without financials can seek assistance from a broker to source low doc vehicle funding through specialist lenders.

Yes. Once the application is approved, new operators may select from Leasing, Chattel Mortgage, Rent -to-Own and CHP.

Some lenders may request that new operators provide extra security for the funding in addition to the vehicle being acquired. This is subject to lender assessment of the individual application.

All commercial credit applications are individually assessed and an interest rate offer arrived at by lenders.

Yes. New operators can realise the tax deductions and benefits applicable to their choice of credit product.

Yes. Applications for commercial credit may be submitted and approved prior to the purchase of the asset.

An ongoing, continuous source of funds are made available to operators to draw on as needed. An upper limit for the funds is set. The operator can use as much or as little of that funding pool as required and when needed.

An ongoing source of funds can be used for general cash flow and expenditure, investments in new opportunities, to acquire stock for inventory, to purchase materials and supplies to enable production and manufacture of goods, to cover unexpected expenses and for a wide range of purposes.

Readily available funds through an overdraft or other arrangement allows operators the flexibility to be able to acquire what they need and pay expenses without having to apply for multiple loans. It allows many smaller expenses to be covered for seasonally-impacted operators and general financial support for all types of operators.

There are no specific repayment schedules applicable to an overdraft or ongoing funding arrangement. The funds can be used as required and replaced when income permits. When used in a transaction account, income from invoices and payments automatically top-up or replace the funds used.

Options to an ongoing funding arrangement may depend on the purpose(s) for the funds. An overdraft is a form of ongoing funding but usually with a shorter timeframe. Secured and Unsecured Loans may also be considered.

Security required for approval of an ongoing funding arrangement will be dependent on the individual lender criteria. Property and assets can be requested. Approval may be obtained through some lenders based on turnover and the strength of the operation.

A variable interest may apply to long-term funding arrangements and this will vary in line with lender rate changes. For short-term arrangements a fixed interest rate may be obtained.

Yes. The purchase of stock and inventory is one of the reasons that many operators apply for an ongoing source of funds. The funds can be used to acquire the stock and repaid when the stock is sold.

An overdraft may be approved for a short term while an ongoing funding arrangement may not have a time limit.

All funding applications are subject to lender approval. Small operators can apply for an ongoing arrangement and can get approved when they meet the lender criteria.

An ongoing funding arrangement can be used for a wide range of purposes. To support cash flow with general operational costs and expenses; to purchase stock, materials and supplies; to acquire equipment which is possibly below the minimum for asset funding products; to cover unexpected expenses; and to invest in opportunities as they arise.

The funding term for an ongoing arrangement will be per agreement between the lender and the borrower. Long term, even permanent, arrangements can be obtained. Short term arrangements can also be put in place.

Interest on ongoing funding arrangements is charged only on the portion of the funds which are used. Interest is usually charged monthly. Interest is not charged on the total amount unless the entire amount is used.

Operators in seasonal types of industries such as agriculture and farming can benefit from an ongoing funding arrangement to cover expenses while awaiting income.

Yes. When an ongoing funding arrangement is in place, it may be used for general expenses such as wages and other costs.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

Operators acquiring heavy-duty vehicles can select from Lease, Chattel Mortgage, CHP and Rent-to-Own for funding.

Heavy-duty vehicle funding rates are individually offered and based on the lender assessment of the application.

No. All sizes and configurations of heavy duty vehicles can be eligible for funding with the same selection of products. Offers are predominantly assessed on the profile of the operator. Used vehicles may attract different rates and conditions to new vehicles.

The term on heavy-duty vehicle funding is subject to lender approval. Terms up to 7 years are typical.

The tax deductions vary with the different types of credit facilities. Chattel Mortgage and CHP have deductions with depreciation of the vehicle. Rent-to-Own and Leasing have tax deductible repayments.

Yes. Credit facilities are available for financing heavy-duty vehicles with all types of fuel systems including new technologies.

The same credit facilities can be used to fund used vehicles as for new – CHP, Rent-to-Own, Leasing and Chattel Mortgage. Rates, terms and conditions may vary with used vehicles compared with new vehicles.

A balloon is an option with CHP and Chattel Mortgage. It is a portion of the total credit amount which is set aside and due for full payment at the end of the credit term.

An online credit calculator is a generic computation device and does not account for credit profiles, application details or lender fees and charges. Offers can vary from the calculator results.

Owner-operators can select from Chattel Mortgage, CHP, Leasing and Rent-to-Own. Where the operator does not meet all lender criteria they may seek lenders and brokers that offer specialist solutions for self-employed enterprises.

Yes. Sole traders and self-employed operators are eligible to apply for credit as a small operator. A number of set-up structures are included in the definition of small enterprises. These include self-employed, micro operations, partnerships, sole traders and companies.

The same selection of credit products is available for small and medium enterprises as for all commercial operators. These include asset acquisition options of Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase; as well as secured and unsecured options.

No. The interest rate offered on all commercial credit applications is based on an individual lender assessment of the inclusions in the application. The rate will be determined by the credit rating, financials, strength of cash flow and turnover, amount requested, industry, amongst other factors. Where a small operator has a good credit profile, strong financials and trading history, a lower, competitive interest rate is a realistic possibility.

Yes. Partnerships would be considered as a small-medium enterprise. Trucks can be acquired with the choice of Chattel Mortgage, Rent to Own, Leasing or Commercial Hire Purchase.

New motor vehicles including cars, vans, utes etc may be purchased with the operator’s choice of credit product. These include Vehicle Lease, Chattel Mortgage and Hire Purchase. Operators are encouraged to speak with their accountant as to which product is most suitable for their operation.

The interest rate on credit products for small and medium enterprises is determined by an assessment of the application by lenders. Rates will vary depending on the credit profile, strength of financials and other factors. Competitive rates are achievable for many small operators. Operators may use lender advertised rates as a guide for planning purposes.

When applying for commercial credit, lenders request a range of documentation around the status and trading history of the operation. Where an enterprise has not been operating long enough to acquire the full documentation, Low Doc and No Doc options may be sought. Some lenders may also assess applications for some products based primarily on turnover for as little as the past 6 months.

Yes. Once approved for a particular credit product, small enterprises may be entitled to realise the applicable tax benefits. Subject to meeting ATO criteria. The benefits vary with credit products in regard to what outlays are tax deductible.

The credit term approved for small enterprises is based on lender assessment of the application. The decision may include consideration of the age and condition of the goods, the amount requested, the lender’s individual guidelines and other factors. For some commercial credit products, terms of up to 7 years or 84 months are achievable.

Yes. Pre-approved motor vehicle credit is available through most banks and lenders. The application is submitted, or quote requested, based on an estimate of the amount required and an indication of the vehicle being purchased. Rates and conditions may vary with used versus new vehicles. So it is important to give an indication of what car is intended to be purchased.

Approval times of applications for small and medium enterprise credit may vary across the lender market. Banks and lenders will have their own procedures for approvals and these may entail varying timeframes. Some brokers and lenders can get approvals within 24 hours. Once approved, the final paperwork needs to be completed for settlement. This may also only take a few days. If requiring fast turnaround, this should be mentioned on submitting the application.

Yes. When approved for credit, small operators are entitled to all the features of that credit product. That includes a balloon for Chattel Mortgage and residual for Leasing. The amount of the balloon is subject to individual lender approval.

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.

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.

All applications for funding are assessed by lenders on an individual basis. Offers can vary based on those assessments of creditworthiness, financials and other aspects. Offers can be different for different operators.

Lenders will display their lowest current available pricing for new vehicles for applicants that meet all criteria and have a good credit profile. Individual offers will be based on lender assessment and approval.

Yes. Competitive offers can be achieved by sole traders that have strong financials and trading history.

Chattel Mortgage and CHP typically attract a lower pricing than Leasing and Rent-to-Own.

As a secured format product, Chattel Mortgage typically attracts a lower pricing than Leasing. This is seen across the lender market.

Operators can use an online calculator to receive repayment estimates. Offers made can be different from results obtained on a calculator. All offers are subject to the lender assessment of the application.

Asset acquisition funding is typically arranged with a fixed rate.

Yes. Interest charges on commercial funding are tax deductible.

Pricing can vary for different asset categories such as equipment and motor vehicles. Variations may also occur for equipment in different industries and for different applicants.

Lenders advertised their best possible rate. An assessment of the individual application is made when an offer is prepared. Where the applicant does not meet all lender criteria or does not have the required credit profile, the offer may be higher than the advertised value.

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 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.

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.

An online vehicle credit calculation device only provides estimates based on the data entered. It does not include lender fees and charges or take into account variations in credit profiles of users. The results obtained are only estimates. Any quote or offer can be different from the calculated results.

No. Most lenders provide vehicle credit calculation devices as a service which carries no obligation.

No. Using an online credit calculation device is not a finance application and the results displayed are not an indication of approval or any offer.

To compare Chattel Mortgage repayments with Lease payments using a credit calculator, simply input the different interest rates for each credit product.

Yes. Credit calculation devices are suited to both new and used vehicles. Users should be mindful that used vehicles may attract a different interest rate.

The interest rate offered to an individual applicant will be subject to lender assessment of the application. For the purpose of obtaining estimates with a credit calculator, users can enter the rates displayed by the provider of the calculator. A higher rate may be entered to allow for a contingency factor.

Estimates on financing all types of vehicles to be used in a business enterprise can be obtained using an online credit calculation device.

There is no limit to how many different calculations can be made on an online device.

Typically there is no fee involved in using a credit calculation device as available online.

Where the result is higher than preferred, users can enter a lower loan amount, a longer financing term or a larger balloon. Being mindful that all these figures will be subject to lender approval.

A balloon relates to Chattel Mortgage and CHP and a residual to Leasing. It is the amount of the total loan requested which is set aside for payment after the final repayment is made. It is optional.

Typically an online credit calculation device does not have a memory function. The results obtained are deleted when a new calculation is started or the browser closed.

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.

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.

Heavy vehicles can be financed with Chattel Mortgage, CHP, Rent-to-Own and CHP.

Not always. The age and condition of a used vehicle is considered by lenders as part of the application assessment process. The interest rate and terms and conditions for used vehicles can vary from offers for new vehicle funding.

Where a vehicle and trailer are offered as a single acquisition, a single credit contract may be obtained for the entire purchase.

The credit term is subject to lender approval. Terms of up to 84 months are typically available on heavy vehicle funding.

Rent-to-Own and Leasing payments are deductions. CHP and Chattel Mortgage deliver a tax deduction with the depreciation of the vehicle.

The fuel system should not impact the credit offer from the lender. The same funding products apply to all types of vehicles.

By using an online credit calculator, buyers can compare repayments for Leasing and Chattel Mortgage. Changing the interest rate to the relevant rate will change the repayment amount.

Yes. Pre-approved vehicle funding would be at the same interest rate as funding approved after purchase.

An online calculator does not include lender fees and charges and does not allow for variations in credit profiles. Any offer made can be different from calculator results.

New operators may not have all the financials to meet lender approval criteria. They may seek brokers and lenders that offer No Doc and Low Doc options.

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.

Passenger transport vehicles can be purchased with the choice of commercial funding products. These include Commercial Hire Purchase, Lease, Ren to Own and Chattel Mortgage.

Interest rates on commercial funding vary with the choice of credit product and with the specifics of the applying company. Lenders display their lowest rates which will typically be for new vehicles and good credit companies.

The financing term approved on commercial lending is typically negotiated with the lender. Asset acquisition funding for transport vehicles can be secured with 7 year terms or other options by negotiation.

The tax deductions vary with the choice of funding products. Lease and Rent to Own have tax deductible repayments. The interest on Chattel Mortgage and CHP is deductible. Assets acquired with Chattel Mortgage and CHP are depreciated and the annual depreciated value is tax deductible.

The same credit facilities suit both new and used vehicles. The interest rate, terms and conditions can be different for new and use vehicles.

Vehicles powered by all energy systems can be financed with the same credit products. These include Chattel Mortgage, Leasing, CHP and Rent to Own.

The interest rates on commercial finance are based on lender assessment of the goods and the profile of the borrower. The energy system of the vehicle may be taken into account by lenders. Some lenders may offer better rates for new energy vehicles in line with any green energy funding  policies they may have in place.

Yes. All types of companies and organisations may be eligible for commercial financing. The organisational structure of the sports club or group including review of financials would be including the application approval process.

Mining companies may select from Chattel Mortgage, Rent to Own, Leasing and CHP to fund midi coach purchase as worker transportation.

The same financing options are available for custom built vehicles and standard models. These are Chattel Mortgage, Rent to Own, Leasing and CHP.

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 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.

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.

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.

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.

Yes. When an application is approved with a poor score, operators may select Leasing as the funding product.

To be eligible for business credit, applicants much at a minimum hold an ABN. GST registration is not essential. Applicants will be requested to provide financials on the operation. These can include tax returns, annual accounts, balance sheets, bank statements, turnover figures and other documentation.

Applicants with a poor rating can expect a higher interest rate to the rates displayed by lenders. Each application is assessed individually and the rate is subject to the lender’s assessment of risk.

Yes. All sized operators may apply for funding even with a poor score and poor payment history. Approval is subject to lender decisions.

The terms and conditions offered to applicants with poor ratings and poor payment history are subject to lender approval. In general terms, up to 84 month terms may be approved.

It may be expected that applicants with poor payment history and score would be asked to provide additional security against funds approved.

Yes. Once approved and funding finalised, operators are entitled to realise the tax benefits pertaining to the product selected.

Applicants with poor scores and ratings can select from the same funding product options as those with a good score. These are Leasing, Chattel Mortgage and Commercial Hire Purchase.

Yes. Applications for vehicle funding may be submitted, assessed and approved with an offer prior to the purchase of the vehicle.

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

GST is treated differently with the different funding products. Leasing has GST applied to the payments and can be claimed on the applicable BAS. With Chattel Mortgage the GST on the vehicle purchase is claimed in full immediately after purchase and no GST is applied to repayments.

An online calculator is a generic device which calculates repayment estimates, ex fees and charges, based purely on the data entered. To use as a guide, applicants with poor credit may use a calculator and input an interest rate above the best rate displayed by the lender.

Yes. Options are available for all kinds of enterprises. Where an owner driver is a new operator or sole trader and does not meet some lender criteria, they may seek no doc and low doc and sole trader options through specialist lenders and brokers.

The interest rate offered by lenders is based primarily on the assessment of the applying enterprise. Credit profile, risk assessment and other aspects are considered. The size of the vehicle being funded would not typically affect the interest rate. The loan amount requested may have an impact on lender approval.

Cab chassis vehicles can be financed with choice of Chattel Mortgage, Lease and Commercial Hire Purchase. The best option will be the one that suits the accounting method used, approach to tax and balance sheet and other objectives.

Being registered for GST is not essential for approval for commercial lending.

The same credit products can be used for new and used cab chassis vehicles. These are Lease, Chattel Mortgage and CHP. The interest rate, security and other terms and conditions can be different for used compared with new models.

A balloon is an option with Chattel Mortgage and CHP.

Yes. Applications for funding can be submitted and approved prior to the actual vehicle purchase. An indication of the type and price of vehicle being considered will need to be provided.

The purchase of delivery-style vehicles can be funded with the choice of Lease, CHP and Chattel Mortgage.

Interest rates on commercial vehicle funding vary with the type of credit product selected and with individual aspects of the application. Banks and lenders will typically display their best rate for new vehicles and applicants that have full documentation, good credit and meet approval criteria.

Leasing is one of the options available for new operators to purchase vehicles. Deciding if Leasing is the best requires consideration of the accounting method used by the set-up, the balance sheet strategy and other aspects. These issues should be discussed with an accountant.

With commercial vehicle credit products, lenders accept the vehicle as the primary security for the funding. In some cases, lenders may request that some applicants provide additional security. This can be via property, assets or personal guarantee.

All commercial credit products offer tax deductions. With Lease the repayments are fully tax deductible. With CHP and Chattel Mortgage, the vehicle is depreciated in line with applicable ATO schedules. The value of the annual depreciation is tax deductible.

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. Once an application for vehicle credit is approved, Chattel Mortgage is one of the facilities available for funding heavy vehicles.

Applicants for commercial funding with issues with creditors will need to have an ABN and provide what financials and documentation they have on their operation. GST registration is not required.

The rate on vehicle credit offered to applicants with credit issues will be subject to lender assessment of the application. As these types of applications are considered higher risk, it could be expected that a higher rate than is available for good credit applicants would be offered.

The term offered on vehicle funding for poor credit operators will be subject to lender approval. In general terms 7 years can be obtained.

Lenders may put a maximum credit amount on applications for vehicle funding with credit issues. This will be subject to individual lender guidelines and criteria.

Yes. When an offer for funding is accepted and settled, the operator can realise all tax benefits relevant to the credit facility selected.

Vehicle funding for all applicants is available with Lease, CHP, Rent-to-Own and Chattel Mortgage.

Yes. Applications for vehicle funding can be approved prior to purchase. An estimate of the amount required and the vehicle to be purchased will need to be provided.

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

GST is treated differently with different credit facilities. With Rent-to-Own and Leasing, GST applies to the repayments. With Chattel Mortgage, the GST on the vehicle purchase is claimed in full directly after purchase. No GST is then applied to the repayments.

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.

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.

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.

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.

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.

An ABN is the minimum requirement to be eligible to apply for commercial van funding. Newly established ventures may apply but may need to seek lenders and brokers that approve applications for new operators.

An ABN is essential to apply for commercial motor vehicle credit. Lenders have criteria for documentation in regard to trading history and financials. Where that is not available, applicants may seek lenders that provide low doc and no doc funding.

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

Yes. Once approved, applicants may request a balloon option. With new ventures, the percentage of the balloon may be subject to lender approval.

Yes. Operators that have only just obtained an Australian Business Number are eligible to apply for commercial credit. Without other documentation, they may need to seek lenders that offer low doc and no doc options.

All commercial operators may consider Chattel Mortgage, CHP, Lease and Rent-to-Own for funding equipment and machinery.

IT equipment can be funded with a choice of Lease, CHP, Rent-to-Own and Chattel Mortgage.

Interest rates are subject to the lender’s assessment of the application. The rates advertised by lenders typically represent the lowest available rates for fully documented applications for new goods by operators that meet all criteria.

Yes. When a credit application is approved and settled, the operator may realise the relevant tax deductions.

An online credit calculator can be used to obtain rough estimates on commercial credit.

Yes. Sole traders can apply for secured commercial funding with all applications subject to lender approval. In some instances, sole traders may provide personal assets as security where suitable assets owned by the operation are not available or accepted.

Secured commercial funding can be used to acquire a wide range of goods and property. These include cars and motor vehicles, plant, machinery and equipment and property. The goods would need to be eligible under ATO rulings for commercial assets. The property may be an ongoing venture or physical property such as buildings, offices, premises and others.

Chattel Mortgage and Commercial Hire Purchase are considered secured funding products. The goods being purchased are accepted by the lender as security against the funds. A Secured Commercial Loan product is also available for non-asset purpose. With this product the security may be assets or property which are not the subject of the financing.

Collateral for secured funding may take the form of goods/assets or property. The collateral may be the goods which are being secured or other goods owned by the operation or the owner. Physical real estate and built-assets property may be used as collateral. All collateral is subject to lender approval.

Yes. Buying an enterprise is a recognised purpose for secured funding. The enterprise being acquired may form the security against the funds. The operation being acquired may be the enterprise only or the enterprise and the premises in which the enterprise trades.

Interest rates offered on secured funding will vary depending on:- assessment of the credit profile and financials of the applying operation; the amount being requested; the condition of the goods being acquired (new or used); and in some cases with equipment, the industry sector. Credit providers will typically advertised their best rates for new goods and for applicants with a good credit rating and full documentation. These rates should be used as a guide only.

All security or guarantees offered for secured funding are subject to lender approval. In the case of ABN holders, as small operators, it can be common practice for the personal financial position of the operator to form part of the application. ABN holders may offer personal assets which are unencumbered, as security.

No deposit funding is available for secured financing, subject to approval. The approval may take into consideration:- the condition of the goods in reference to the total amount requested without a deposit; the ability of the operator to furnish the full purchase price in a secured credit product; and other factors.

Many providers of secured commercial funding to provide online application processes. Many will offer complete online or remote processing of applications so no interviews at branches or offices are required. Applications can be submitted by online forms and would then be assessed by the credit officer or broker for that organisation. Interest rates are determined by individual application assessment so completely automated application and approval processes are less widely available.

To apply for secured commercial funding, operators will be required to submit:- ABN, ID, financials for the operation which may include tax returns, annual accounts, bank statements and similar. Details of the goods or purpose for the funding is required. The amount required for the funding will be required. Where all the documentation is not available, operators may seek the assistance of a broker to source low doc options.

The suitability of a finance product for a particular enterprise will depend on issues relating to the individual structure and objectives. These include financial objectives, accounting method and practices, balance sheet strategy, tax, amongst others. Based on that assessment, this loan type may suit a wide range of enterprises and the issue should be discussed with an accountant.

Sole traders are eligible to apply for this type of finance. The minimum requirements for eligibility for commercial loans is to hold a current ABN and have identification.

A wide range of equipment used in the operation of an enterprise may be financed with this type of loan. Plant, machinery and equipment used in many sectors including construction, manufacturing, professional services, medical and health, retail and many others. The approval of equipment for financing is subject to individual lender guidelines.

Yes. The monthly rental payment which is the loan repayment, is treated as a business expense under ATO rulings and is tax deductible.

The lender retains ownership of the equipment while the borrower has full use of the goods during the rental/loan term. The borrower is responsible for meeting all the ongoing running, operational, maintenance, insurance and other expenses.

The buyback price is the price or cost that the borrower pays at the end of the loan term to take full ownership of the goods. A specific price may be included when the initial loan agreement is established or it may be negotiated at the end of the term. When the borrower finalises the buyback payment the lender signs ownership over to the borrower.

Off-balance sheet is an accounting term which refers to the goods or assets not being entered into the balance sheet or accounts books of the borrower. With this type of funding, the lender retains ownership of the goods. As such, the goods appear on the lender balance sheet, not the borrower’s.

Operators without all or any of the documents including financial records requested by lenders may consider Low Doc or No Doc funding. Where the application is approved the operator usually has their choice of funding product and may select Rent to Own for Low Doc applicants.

No. Typically this funding product is arranged with a fixed interest rate. The rate is fixed for the entire rental period and not subject to change with lender or Reserve Bank decisions.

Changing a funding product prior to the end of the fixed term would require refinancing. Refinancing is the process of replacing an existing funding arrangement with a completely new loan. When refinancing, operators may select the same or another funding product.

Yes. This funding product suits a wide range of equipment including the machinery used in the construction sector. Equipment for earthmoving, backhoes, diggers, cranes, excavators and many others. Both new and used equipment may be financed with this loan type.

Yes. All types of trucks and heavy vehicles can be financed with this type of funding. That includes heavy-duty, medium-duty and light-duty vehicles. Truck and trailer may be financed in the same funding arrangement or as separate loans.

Lenders will typically display the best interest rate currently available through their organisation. Unless otherwise stated, the displayed rate is typically for new goods and for applicants that have a good credit history. Each application is assessed on an individual basis for creditworthiness. The asset being financed will also be considered. An interest rate will be offered based on the individual lender assessment of the application. That rate may vary from the rate displayed.

Yes. Pre-approved funding can be arranged prior to purchase. The application is submitted based on an estimated total loan amount required and a guide to what goods are intended to be purchased. The application is processed to the stage of approval and a quote provided. The details, including exact loan term, are finalised when the purchase is made.

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 interest rates applied to different types of funding products are determined by a range of factors. In regard to the difference between secured and unsecured options, one of the key differentiators is risk. Secured products are funding for physical assets such as motor vehicles and equipment. The asset is the security. The lender has the option to repossess the asset if the borrower defaults. With an unsecured product, there is no physical asset to repossess. Unsecured options do not have the same security for lenders as secured products and are rated as higher risk. This results in higher interest rates.

An unsecured funding product is one where the purpose of the funding is not provided or available as security against the funds borrowed. Secured funding will be provided for physical assets which provide the lender with the security that they have an option to recoup funds should the arrangement go into default. An unsecured option is used for purposes other than physical assets or where the asset is deemed unsuitable for security. These may include older models of equipment and expenses such as purchasing new stock which will be sold as merchandise, training and marketing and other non-asset expenditure.

The use of the term ‘security’ in the financial sector refers to security of the funding from the lender perspective. Funding may be secured or unsecured by the goods or other purpose for the funds. The lender has the security that they can repossess the assets if required. An unsecured product does not have that security for the lender but does not present any increased or otherwise risk to the borrower. The definition of security in financial terms may be interpreted as ‘safety’ for lenders.

Unsecured funding may present a flexible and workable option for operators requiring funds for non-asset expenditures. The product allows enterprises to source funding for a wide range of needs where an asset acquisition funding product is not suitable. Interest rates may be fixed or variable, offering borrowers with flexibility in structure and other conditions.

A secured product is suited to the acquisition of physical goods that can be offered as security or guarantee against the funds. These products include Chattel Mortgage, Leasing, Rent to Own, Hire Purchase and general secured funding. An unsecured product is selected where the purpose is not a physical asset or goods which can be used as security. A lender may not accept the goods based on age and condition or the purpose may be a non-asset expenditure.

No. Interest rates on all funding products can vary across the market. Credit providers set their own rates based on their own criteria and guidelines, costs of sourcing their own funding, outlook for rates and the economy, the risk associated with different products. The rates advertised will be for applicants with a good credit profile. The specific rate offered will be based on the lender’s assessment of the application. Lenders can vary in their assessment of risk based on their guidelines.

The reason why unsecured funding is applied for may impact the interest rate which is offered. An assessment is made by the lender of all aspects of the application when an offer is being prepared. This includes the creditworthiness or risk associated with the applicant, the amount requested and the purpose of the funding. Lenders may have their own criteria around for what purposes they will extend funds.

Unsecured funding may be sought for a wide range of non-asset expenditure by businesses. The purposes may include:- purchase of stock for a retail, import or wholesale operation; training and development courses; marketing campaigns; consultancy services; some IT systems which may not be considered suitable for asset acquisition products; costs associated with the initial setup of an operation; product research and development expenditure; and many others.

Although an unsecured product is not secured by a physical asset, some form of collateral or guarantee may be requested by the lender. A personal guarantee from the owner of the enterprise may be accepted as such security. A risk assessment of the individual providing the guarantee would be undertaken. This would involve a review of the credit profile and financial position. Where the risk is rated as lower based on the quality of the personal guarantee, a lower interest rate may be applied to the unsecured funding. This is subject to lender approval and may vary across the market.

An alternative to an unsecured funding product may be a non-bank overdraft. An overdraft may be used for a wide range of different purposes. It may be established for a short period or as an ongoing line of credit. The purpose for which an operation requires funding may determine which is the more appropriate solution. Both products offer flexibility and versatile. The interest rate on overdrafts may be higher than an unsecured product. But it may provide greater flexibility to finalise the commitment earlier and attract lower total interest payable.

The interest rates offered on all funding products are based on the assessment by the lender of the individual application. This includes the assessment of risk which is based on the credit review and review of the financial position of the enterprise. With some applications, the personal credit profile and financial position of owners or directors will also be assessed. To obtain a specific rate for an individual funding request, a quote would need to be requested and/or application submitted.

Interest rates on unsecured funding products may be at a fixed or a variable rate. This will be determined by the lender and potentially in discussion with the borrower at the time of application. Some lenders may attach a variable rate to all unsecured products, while others may attach a fixed rate. With a fixed rate, the rate will remain unchanged over the full term. With a variable rate, the rate is subject to change. Changes to interest rates can occur when the Reserve Bank announces changes to the cash rate and/or when individual lenders change their rates. Lenders may change their rates based on market conditions and their outlook for rates and the economy.

The type, size and structure of an enterprise may impact the interest rate offered on funding products. Structures include corporations, partnerships, sole traders, ABN only holders, SMEs and others. The size of the enterprise and the time they have been operating may reflect on the lender’s risk assessment of the application. A small enterprise that has been trading for a long period and has a good credit profile and strong financials may be assessed as low risk, in the same way as a larger corporation. Some may be seen as higher risk and attract a higher rate.

The amount requested is a major consideration in the overall assessment of a funding application. A smaller amount may be perceived as having lower risk compared with a higher amount. The lower risk assessment attracting a lower interest rate. The ability to furnish a debt of any amount forms an integral part of the application assessment and may influence the interest rate offered.

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.

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.

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.

Operators have a choice of several products when applying for funds for a new vehicle. The selection includes Chattel Mortgage, Commercial Hire Purchase and Leasing. Novated Leasing with salary sacrificing is also available where employers purchase a vehicle for an employee and the employee sacrifices part of their salary.

Yes. Holding an ABN is essential to be eligible for commercial lending. Options can be sourced from specialist lenders for those that have been operating with an ABN for some time or have only received their ABN recently.

Yes. Self-employed operators, contractors, freelancers, outsources and gig workers can all be eligible for funds for vehicles. Operators must hold an ABN. Where an operator does not have all the financials, they may seek options for low and no documentation products through brokers or specialist lenders.

The tax deductions vary for different credit products. With Chattel Mortgage and CHP the deduction is realised through depreciation of the vehicle. With Leasing the repayments are tax deductible. Interest on all products is deductible.

The rates advertised by lenders will be the best available for new vehicles and operators with good credit. Lenders assess applications individually and offer the appropriate rate based on their assessment of the application. The rates vary with different credit products.

Yes, through some lenders. Some lenders will have a minimum trading time for applicants to be approved. It may be 12 months or 2 years. There are lenders that will approved funds for new start-ups. The personal financials of the owner may be included in the application assessment. Additional security may be required.

Where an operator does not have the full documentation to complete the application form for some lenders, they may seek Low Doc and No Doc options. These are offered through specialist lenders which may be accessed by brokers.

Yes. Owner operators that hold a current ABN can be eligible for funds for vehicles. The amount of documentation supporting the application can enhance any offer made.

The features of credit products vary with suitability to the cash or accruals method of accounting, balance sheet strategy, tax approach and general objectives. It can be advisable for operators to consult with their accountant when making the selection.

Buyers can use an online calculator to derive rough repayment estimates. These tools are available online at the websites of lenders, brokers and others that offering vehicle credit. They are esy to use but only provide an estimate for planning and budgeting purposes. The results are not a quote or offer.

Yes. Credit applications can be submitted prior to purchasing vehicles. Applicants will need to provide details of the vehicle and loan amount to ensure a specific offer can be received. Approval can be received based on the amount requested and the exact amount finalised after purchase. Pre-approved credit is usually obligation-free.

The interest rate for credit on new and used vehicles can vary. The lender will take into account the age and condition of vehicles when arriving at the interest rate offer. Rates advertised are usually for new vehicles.

Funding is available for all types of vehicles that will be primarily used in an enterprise and meet ATO criteria as an asset. That can include SUVs, utes, sedans, vans, wagons and others. The same credit products are available for purchasing all types of makes and models.

Interest rates for funding for vehicles vary with the credit products available and based on the individual details in the application. Chattel Mortgage and Commercial Hire Purchase attract a lower rate than Leasing.

Terms of up to 7 years can be available for funding for motor vehicles. The term is subject to lender approval and would be offered dependent on the risk assessment of the applicant and the amount requested.

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.

Sole traders are required to complete a commercial credit application form. Having an ABN and identification is essential. Being registered for GST is not essential but may be preferable. A range of financials is requested to verify the strength and status of cash flow, assets and liabilities. Where not all documents are available, sole traders may source low doc or no doc options.

Interest rates on commercial credit for all enterprises are offered based on a risk assessment by lenders. This includes a review of the credit profile, cash flow and financials. Sole traders that have good credit and strong financials can attract competitive rates. To obtain a specific rate based on individual specifications, an application or quote request would need to be submitted.

Sole traders have access to credit to purchase assets including motor vehicles, trucks and all types of equipment with Chattel Mortgage, Leasing, Hire Purchase and Rent to Own products. For general support for cash flow and other non-asset expenditure, secured and unsecured options are available as well as overdrafts and lines of credit.

Yes. Some lenders do have a minimum trading period in their criteria for commercial credit. There are credit providers that do offer credit to new and start-up operations. Where all the documentation required for the application is not available, new operators may source low doc and no doc options.

In general terms, sole traders may acquire a wide range of goods for their operation with commercial credit. This may include motor vehicles, vans, trucks and equipment with asset acquisition products. Stock, training and development and other goods not considered as assets may be acquired with secured or unsecured credit options.

The range of credit products is the same for sole traders in all industries. The interest rates offered can vary with the industry and the goods being acquired. All credit offers are subject to a risk and credit assessment by the credit provider.

The amount requested for credit by sole traders will be reviewed by providers when assessing the application. The amount will be assessed against the strength of the cash flow, financials and prospects and the suitability of the goods as credit security. Where the total amount requested is not accepted, sole traders may consider reducing that amount by paying a deposit on the goods or sourcing lower priced options.

Up to 7 year terms are available on many commercial credit products, particularly asset acquisitions. The term approved on any individual application will be based on the ability of the applicant to furnish the commitment, the age and condition of the goods, the amount requested and other factors.

No. Sole traders may have very good credit profiles whereas bad credit applicants, by definition, have poor credit. The personal credit profile of a sole trader may form part of the application for credit by the enterprise. Where the personal credit rating is good, this may contribute to a better offer.

Yes. Credit is available for sole traders for the purchase of all types of vehicles which are to be used in the operation as per ATO rulings. The most popular credit products for vehicle purchases are Chattel Mortgage and Leasing.

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.

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.

The main asset acquisition finance products are Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own. These are secured funding products. The machinery is accepted as the security against the funding. With some applications, the lender may request additional collateral. This may take the form of a personal guarantee or other property. The security required may be determined by the credit assessment. Low Doc, No Doc and bad credit applicants may be required to provide additional security.

Yes. Funding arrangements for plant, machinery and equipment used in an enterprise may be refinanced. Refinancing is the process of replacing existing funding arrangements with new contracts. The refinancing may be with the same or a different product and with the same or a different lender. Fees typically apply when a loan is finalised prior to the scheduled end of the term.

No, deposit funding may be requested. This refers to the entire purchase price forming the amount borrowed. Approval of all loan amounts is subject to individual lender decisions. With some machinery, the costs of delivery, installation and commissioning may also be included in the total amount requested.

Where an individual is setting up a new business, they usually do not have all the documentation required to complete the application form. In these instances, the individual may seek No Doc or Low Doc options. This is a description of the type of application and not specific funding products. If approved as a Low Docs or No Docs applicant, the applicant may have their choice of Chattel Mortgage, Rent to Own, Commercial Hire Purchase and Leasing products.

The interest rate offered by individual lenders will be determined after an assessment of the application. Considerations include the creditworthiness of the business, the owner in some cases, the age and condition of the goods being purchased and the total amount requested. The rates advertised by lenders are typically for funding new goods and for operators with a good credit profile.

Yes. This general category of funding encompasses all types of plant, machinery and other goods to be used in and by an enterprise. It encompasses virtually all industry sectors including the fitness sector. The interest rates offered can vary depending on the industry sector. Some lenders may offer funding to specific industry sectors only. Others will have a broader offering across a wide spectrum of sectors.

The tax deductible elements of funding products vary with the exception of interest charges. The interest charge portion of all repayments are deductible. With Leasing and Rent to Own, the monthly payments are treated by the ATO as expenses and are tax deductible. With Chattel Mortgage and Commercial Hire Purchase, the interest portion is deductible but the balance is not. These products realise a tax deduction through depreciation of the asset.

Yes. All types of enterprises may be eligible for funding equipment for their operation. This includes small and medium enterprises. Where a SME has been operating for a reasonable timeframe, they may have acquired all the documentation required to complete the application form. Where a SME is a relatively new enterprise without all the documentation, they may seek out a lender that offers Low Doc and No Doc options.

A balloon payment relates to the Chattel Mortgage funding product. It is a part of the total loan amount which is set aside for payment at the end of the term. It is usually expressed as a percentage of the loan amount. The balloon amount is subject to lender approval. The balloon is paid in a lump sum when all monthly payments have been finalised. A balloon may be finalised by the enterprise using existing funds or by sourcing a new financing arrangement. Effectively refinancing the balloon.

The terms for funding equipment will vary according to the lender’s criteria and details in the application. These may be in relation to the creditworthiness of the applicant, the age and condition of the goods being acquired, and/or the amount being requested. Terms of up to 7 years are available through a range of lenders.

Lenders will set the minimum amounts for their own portfolio. There is no general rule across the sector for minimum funding amounts. There are many lenders offering this type of funding and businesses may canvass a range or utilise a broker to assist with identifying a suitable lender. Where the amount is below the threshold for asset acquisition finance, operators may consider other options. These may include secured or unsecured funding or overdraft.

Yes. Getting approved prior to attending an auction can be arranged. The pre-approved process involves processing an application through to the stage of being approved for the amount requested. As the amount of the purchase may not be known prior to auction, it may be estimated for the purpose of the application. When the purchase is made and the exact amount required is known, this is conveyed to the lender and a specific offer for that amount prepared.

No. Rates generally vary for new and used goods. The rate for used goods may be higher than for new. The decision will be based on an assessment of the age and condition of the goods and lender criteria. Rates also vary across the range of funding products and for different industry sectors. A quote should be requested to receive a specific rate.

Yes. Holding an Australian Business Number (ABN) which is current, is a pre-requisite for eligibility for commercial funding. Where an operation is setting up, the ABN should be obtained prior to a funding application being submitting. Identification is also required. It is not essential that an enterprise be registered for GST.

The choice of funding types for lifting equipment are Rent-to-Own, CHP, Leasing and Chattel Mortgage. Each has varying features which will suit different company set-ups and objectives. The best option is the one which best suits the accounting approach of the operations.

Interest rates are different for different credit facilities, can  vary from lender to lender and for individual applicants. For a specific interest rate offer, operators can request a quote.

Repayments on Lease and Rent-to-Own are considered a business expense and are tax deductible. Repayments on CHP and Chattel Mortgage are not deductible. These forms of funding provide a tax deduction through depreciation of the asset.

Buyback relates to Rent-to-Own funding. It is the amount payable at the end of the term for the borrower to take full ownership of the goods from the lender.

Used and new goods can both be acquired with the choice of Leasing, CHP, Chattel Mortgage and Rent-to-Own. The interest rate for used goods can be different from the rate offered for new goods. Lenders will assess the age and condition of goods and apply terms and conditions based on that assessment.

Prior to requesting a quote, buyers can use an online credit calculator to obtain rough estimates. These are only estimates and any quote may differ from the calculator results.

Terms of up to 7 years are typical for heavy equipment funding but will be subject to lender guidelines.

The same types of credit facilities are used for all makes and models of lift equipment. The specific interest rate and conditions may vary with different types of equipment, subject to lender guidelines.

When starting a new company, operators may not have all the documentation to meet the approval criteria for commercial credit applications. A low doc or no doc option may be considered. These can be sourced from specialist lenders and brokers.

Commercial credit products enable the equipment being acquired to be the security against the funding. Lenders may request additional security be provided by certain applicants. This will be based on individual lender guidelines.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Yes. All kinds of properties used in all industry sectors may be eligible for funding.

Yes. Funding can be applied for and approved prior to the actual purchase. An amount would be approved to allow buyers to confidently bid at auction.

The rates offered by lenders on all kinds of properties used by an enterprise are arrived at on an individual basis. The profile of the buyer and aspects of the property are both assessed by lenders.

Funding solutions are available for the acquisition of land and sites for redevelopment and development for commercial operations.

The leverage required for property loans is subject to individual lender guidelines.

Yes. All kinds of commercial properties may be financed.

The percentage approved is subject to lender guidelines and aspects of the application. As a guide, up to 80% is achievable.

The interest rate on funding for the purchase of properties used by enterprises is priced on an individual basis. The rates vary across the lender market and are subject to individual application assessments.

Rates for loans for properties used by enterprises can be at a fixed or variable basis. Rates are negotiated.

Yes. Office space can be financed with commercial loans. This includes existing and new properties.

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.

Banks, non-bank credit providers and brokers will have varying processes for applying for funding. Many providers offer online application processes and applying by phone options. Applications may also be submitted in person to some banks and providers at their branches.

No. An application is a request for approval for funding. It is not a commitment to proceed should the application be approved and any offer made. Any commitment is made when a confirmed offer is received and contracts are signed.

The specific products which can be applied for online may vary with different lenders. Applications for motor vehicle credit, truck finance and equipment funding are generally available via online portals. More complex funding such as Overdrafts, may require application over the phone or after consultation with the provider’s representative.

No. An application is in no way an obligation to accept the offer made by that specific credit provider. Applications can be made to multiple credit providers and the most suitable offer accepted.

The time taken to approve credit applications can vary across the market. It may depend on the amount of applications received by a provider, the staffing levels, the efficiency of their systems and other factors. A 24-48 hour approval time is offered by some brokers and providers.

To complete an application, the applicant will be required to provide details of the entity making the application, the ABN and other corporate information and provide documents to verify the income and expenditure, trading figures and assets and liabilities of the entity. The documents can include tax returns, BAS returns, bank statements, annual accounts and similar. Information on the amount required for the funding is also needed. If known, details of the goods being purchased is to be provided.

Applicants will be required to provide information on the entity, the financial position, and general corporate details. Information on the amount required for the loan is required. In addition, details of the equipment being purchased will be required. Interest rates vary with new and used goods and for equipment used in different industries.

Yes. This is generally referred to as pre-approved funding. All the same requirements for the application would apply regarding the entity. Details of what goods are intended to be acquired and the funding amount required can be estimated.

If an entity does not have all the required documentation for the application, they may seek a credit provider that offers Low Doc and No Doc funding options. Not all providers offer these options. Non-bank lenders and brokers are more likely to offer these options than major banks.

An online calculator can be used to obtain rough estimates of repayments based on the rates advertised by credit providers. Interest rate offers are determined after applications have been assessed. Applicants can use advertised rates as a guide to a best case scenario solution.

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.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

To be eligible for commercial financing products, the applicant must have a current ABN and produce identification as mandatory requirements. Applicants will also be requested to provide documents relating to the financial position of the enterprise. These documents may include annual accounts, BAS returns, profit and loss statements, tax returns, assets and liabilities schedules and similar.

No. Being registered for GST is not a mandatory requirement for eligibility for commercial financing products. However, some lenders may view those that are registered more favourably. All enterprises with a turnover over $75,000 pa must be registered for GST.

A Chattel Mortgage is a secured form of commercial financing which is widely used for funding vehicle purchases. The Chattel is the vehicle and the mortgage refers to the funds. This is  a versatile product which suits many operations that use the cash accounting method. It suits the purchase of many different types of vehicles. Some lenders may refer to this product as Secured Vehicle Finance as a more contemporary term. The vehicle is accepted as the security for the funding and the buyer takes immediate ownership of the vehicle while repaying the funding.

There are three main types of funding products for the purchase of motor vehicles – Chattel Mortgage, Leasing and Hire Purchase. The selection of which is best is based on which is most appropriate or best suited to the individual requirements of the enterprise. The deciding factors may include the approach to taxation, approach to the balance, accounting method utilised and general financial objectives. All products include tax benefits.

The tax deductible elements of vehicle funding products vary. The repayments on vehicle leases are treated as an expense for the enterprise and are tax deductible. The total amount of repayments made in a financial year would be entered as deductions when the tax return is prepared. With Chattel Mortgage and Hire Purchase, only the interest portion of the monthly payment is tax deductible. These products realise a tax deduction through depreciation of the vehicle as an asset. The depreciation value is calculated in line with ATO schedules.

The balloon payment is a portion of the total funding amount requested which is payable at the conclusion of the funding term. It is due as a lump sum after the final monthly repayment is made. The balloon can be expressed as a percentage of the total funding amount or as a dollar figure. The balloon percentage remains constant through the term and attracts interest. When due, the balloon may be refinanced with a new funding arrangement. Balloon relates to Chattel Mortgage and Hire Purchase. The residual is a similar term which applies to Leasing but differing arrangements to finalise the residual apply.

All types of vehicles may be eligible for commercial funding products. These include SUVs, utes, cab chassis, light commercial vans, passenger cars, sedans and other body types and models. To meet tax deductibility criteria, the vehicle must be used for and in carrying out a commercial enterprise. Buyers may seek ATO guidance or advice from an accountant around the eligibility of vehicles for commercial purposes. Where vehicles purchased by and owned by enterprises are also used for private purposes, FBT may be applicable.

Where the owner of an enterprise seeks to provide a vehicle for an employee, they have a number of options. Where the vehicle is to be used primarily to carry out the role, the owner may choose to purchase the vehicles with Chattel Mortgage, Leasing or Hire Purchase. The business:private use may be subject to FBT and should be discussed with an accountant. Another option is a Novated Car Lease with Salary Sacrificing. This is a three-way arrangement between employer, employee and lender. The vehicle is purchased by the company under a leasing arrangement and the employee sacrifices as portion of their salary to cover the costs as paid by the employer. The end purpose is for the employee to own the vehicle at the end of the leasing term.

Yes. As long as an enterprise has an ABN and identification they may be eligible to apply for commercial vehicle funding. Where a new enterprise does not have all the documentation that is requested on the application form, they may consider applying for Low Docs or No Docs arrangements. These are descriptions of applicants that do not have all the documents required for the standard commercial funding application.

If you have an ABN and identification you can apply for commercial funding for the vehicle. A commercial van should be considered as suitable vehicle for finance. As a new operator, if you do not have all the financial records including tax and BAS returns, you may seek lenders that offer Low Docs and No Docs options. These are specifically designed for operators without all the supporting documentation for their application.

The same funding products may be available for both new and used vehicles. The products being Chattel Mortgage, Leasing and Hire Purchase. The age and condition of used models will be taken into consideration by lenders. The decision will determine if the vehicle is accepted as suitable security for a Chattel Mortgage and/or eligibility for Leasing. If not considered suitable security, a used vehicle may be financed with an unsecured credit product. Where accepted for secured forms of funding, used vehicles may attract a different interest rate and varying conditions on the funding arrangement compared with new vehicles.

Whether or not the monthly repayments change over the term will depend on the type of interest rate secured on the funding. The types being fixed interest rate or variable interest rate. Most lenders will tend to offer a fixed interest rate on Chattel Mortgage, Hire Purchase and Leasing. The fixed rate and a fixed term will result in repayments which are also fixed for the term. Where a variable interest rate is applied to funding, the repayments may be subject to variations over the term.

The terms available for funding vehicles for use in an enterprise can vary with the lender and the details of the individual application. Terms of up to 7 years are available. The lender will take into account the specifics of the vehicle including price, market value and type as well as the total funding amount requested and the credit profile of the applicant. An offer will be prepared which includes the approved term as well as the interest rate.

Yes. An application for vehicle funding can be submitted and processed through to approved status prior to the actual purchase of a vehicle. The total amount required may be estimated for this purpose and finalised when the purchase is finalised. Pre-approved funding would attract the same interest rates as when the application is submitted post-purchase or when a purchase commitment has been made. Many operators utilise pre-approved funding to provide a clear indication of how much they will be approved to borrow. This may provide assistance in selecting a vehicle which is priced to suit the funding and budget.

Vehicle funding offers are arrived at with an individual assessment of each application by lenders. As credit profiles and other aspects of businesses can vary, offers can also be different.

Buyers can use lender advertised rates as the lowest current available values. The offer made to an individual enterprise will depend on the strength of the financials, credit profile and other application details.

Chattel Mortgage and CHP attract the lowest pricing across the commercial asset acquisition lending options.

Banks and lenders set their pricing based on individual guidelines and their own assessment of the economy, the strength of different sectors and their keenness to lend to a certain sector or on certain products such as heavy vehicles. This leads to variations across the market.

Operators without all the financials to meet lender criteria may seek No Doc and Low Doc funding providers. These options may be expected to be priced higher than the best possible offers. A specific quote will need to be requested to obtain an exact offer.

Buyers can use an online credit calculator to work up estimated repayments.

Used vehicles may attract different offers than new vehicles. The size, brand and configuration of new vehicles do not typically impact offers but the amount requested in relation to the credit profile of the applicant may impact an offer.

A better offer may be achieved by contacting other lenders, engaging the assistance of a broker or making amendments to the funding requirements or the financial position of the enterprise.

Pricing advertised by lenders is typically the lowest current available rate for new vehicles and good credit applicants with complete and strong financials. Where an applicant does not meet the lender criteria for the lowest pricing a different offer may be received. Lenders change their rates in response to market fluctuations and other aspects and the pricing may have changed since your application was processed.

Heavy vehicle funding is typically secured with fixed rates which are fixed for the entirety of the term and will not change with RBA decisions.

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.

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.

Applications for vehicle funding that do not have all the financial documentation are referred to as without financials or no docs.

Yes. An ABN is essential, but this type of application infers that no documentation is available. Start- ups are typically in this situation.

An ABN is essential, but GST registration is not required to be eligible to apply for commercial credit. In addition, applicants are requested to provide as much information and documentation in regard to their operation as is available. This may include tax returns, annual accounts, BAS statements, turnover figures and similar.

Without financials applicants may be offered competitive rates on vehicle funding. All applications are assessed individually with offers subject to the lender criteria and matrix.

Yes. Once approved for lite doc funding, operators may select Leasing or Rent-to-Own, CHP or Chattel Mortgage.

Some lite doc applicants may be required to provide collateral in addition to the vehicle being purchased. This is subject to individual lender guidelines and assessment of the application.

Yes. When approved, without financials applicants can realise the tax deductions relevant to the credit facility selected.

Some lenders will approve lite doc vehicle funding based on 6 months of turnover.

Yes. Applications for vehicle credit may be submitted and approved prior to purchase.

Applicants may use an online credit calculator to obtain rough estimates for funding. Being mindful that the results obtained are estimates only.

The role of a financial consultant is primarily to advise individuals and enterprises on issues around their finances. They may advise, guide and manage matters in regard to superannuation, investments, accounting and others. The role of a finance broker is to source and structure loans on behalf of clients based on the brief provided.

No. The role of the broker is to source the cheapest and most appropriate funding offer from across a selection of many lenders based on a briefing and directions from the client. Directions which would include which particular loan type was required. The task is to source the most appropriate offer that meets the client’s requirements as indicated. The choice of the most appropriate product – Chattel Mortgage, Leasing, Rent to Own, CHP, Secured Loan or other, is dependent upon accounting issues and objectives of the enterprise. The broker would encourage clients to discuss choice of finance product with an accountant.

No. The broker will source offers from across a selection of banks and lenders and present the offer to the customer. The customer remains in control of all decisions when engaging with these services. The customer may accept or reject any offer made by the broker.

It is usually not necessary to select a broker that is located in the same region as the client. Many operate on a nationwide basis and provide services to all areas from a head office location. Discussions are handled by phone, email and other online communications. Documents, including quotes and offers may be exchanged via email and other electronic document exchange and transfer systems.

Yes, depending on the scope of services offered by a particular brokerage firm. Brokers can provide services to both individuals and all types of enterprises. These include sole traders, owner-operators, partnerships, corporations and micro enterprises.

The range of services offered by brokers may vary. Those services may include sourcing funding options for customers with bad credit. When requiring bad credit funding, customers may consider source a service that does offer or specialise in this area.

The range of funding products offered by a business-focussed service may specialise in a specific area such as motor vehicle loans or asset funding or they may offer the full range of options. This full range includes, but may not be limited to, Chattel Mortgage, Leasing, CHP, Rent to Own, Overdrafts, refinancing Secured and Unsecured Funding with options for Low Doc and No Doc and bad credit. Some may also offer specialised products such as Insurance Premium Funding and Debtor Invoice Funding.

Not necessarily. Some commercial funding brokers may also offer home loan options. Home loan consultants typically specialise in sourcing funding in the housing sector and are accredited with banks and lenders that offer that type of funding. Those operating in the commercial sector will have accreditations with lenders that specialise in that area of funding.

Yes. The motor vehicle lending sector is one of the largest and most competitive in Australia. Broker-style lending services assist source the most appropriate offers from across the vast lender selection. Products offered would include Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own.

Services offered by brokers can vary. Clients can review the range of services offered by different firms to ensure their needs are included. Those needs may include equipment and machinery funding, loans for motor vehicles and trucks, refinancing, complex restructuring funding, general support and others. Clients may also consider the geographical locations covered to ensure they will receive the appropriate level of service. Ensure the company is large enough to handle the needs quickly. Ensuring the company has specific experience in the industry or sector of operation may also be a significant benefit.

Brokers have accreditation with banks and lenders. That means they have been approved by that lender to source lending from them on behalf of their clients. The number and range of accreditations will vary. Those with a greater selection including specialised lenders, may provide greater choice and better prospects to source cheaper offers.

Using a broker-style service can save customers time, not add more time to sourcing funding. They have the resources and expertise to quickly cover a large number of lenders to identify the one that is currently offering the most appropriate rate and option to suit individual needs. Sourcing and comparing quotes and offers from multiple lenders can take individuals a significant amount of time. Brokers can carry out this process much faster and with greater expertise. They may also have access to specialist lenders that work only at an industry level and not directly with customers.

Yes. Most brokers will provide refinancing as part of their service offering. Refinancing involves replacing the existing funding arrangement with a new loan. Refinancing may be provided for equipment and machinery funding, heavy vehicles, motor vehicles and for other commercial funding needs and purposes.

Yes. The role of brokers is to handle all the communications and negotiations with lenders on behalf of their client. This includes sourcing quotes and offers that best meet the client’s requirements. When presenting the offer, they should explain the details in terminology that is understood by the client. The client then makes an informed decision around accepting any offer and proceeding or not.

HP is a credit product for businesses to purchase motor vehicles. The lender retains ownership until all repayments and balloon are finalised and then signs title over to the buyer. Buyer has full use of the vehicle through the term and is responsible for all expenses for the vehicles.

No. Only the interest portion of the repayments of HP agreements is considered a tax deductible expense. Businesses realise a tax deduction with HP through depreciation of the vehicle.

No. An ABN is essential to be eligible for business funding but GST registration is note. Some lenders may view GST registration favourably. Operators with an annual turnover of more than $75,000 must register for GST under Australian business regulations.

GST is applied to the purchase price of motor vehicles. When purchasing vehicles with CHP, that full amount may be claimed on the BAS return coinciding with the purchase timing. Once the entire amount is claimed, GST is not applicable to repayments or balloon.

To be eligible for business credit products, vehicles must meet ATO rulings and be for use in that business. All types of vehicles may be funded with CHP. That includes utes, cab chassis, vans, wagons. SUVs, MPVs, sedans and all body types of passenger vehicles.

Interest rates for HP vary across the lending market. HP rates tend to be in line with Chattel Mortgage and the lowest of the selection of business funding options. The interest rate offered will depend on the assessment of the application by the lender.

Sole traders are eligible for CHP as are all types of business structures and operations of all sizes. An ABN is essential, but GST is not required.

Yes. Where the van is deemed for use in a business, it is eligible for CHP.

Many lenders will offer a no deposit option for CHP arrangements. This allows the full purchase price to be included in the funding arrangement. No deposit is subject to lender approval.

Yes. All types of vehicles, new and second-hand, may be purchased with CHP. In some instances, the interest rate and funding terms and conditions can be different for used vehicles than for brand new.

Yes. When approved, self-employed entities may select Leasing, Chattel Mortgage or CHP to fund vehicle purchases.

To be eligible for commercial funding, applicants must have a current ABN and ID. GST registration is not essential but may be considered favourably by some lenders.

The expectation for commercial funding applicants with a poor rating could be for a higher rate than the best rate advertised by lenders. All applications are assessed individually by lenders and a rate commensurable with the assessed risk offered.

The security required on loans with poor ratings is subject to lender assessment of the risk. Additional security may be requested via assets, property or personal guarantee.

Yes. When approved for funding, operators can realise all the relevant tax benefits pertaining to the credit product selected.

Commercial vehicles can be financed with Chattel Mortgage, CHP and Leasing. The same products apply to those with issues with their rating as well as those with a good profile.

Yes. Applications for commercial funding can be submitted and approval granted prior to purchase of the goods. An estimate of the amount required will need to be provided along with an indication of the goods to be purchased.

Yes. When approved for Chattel Mortgage funding, self-employed operators with a poor score can include a balloon. The amount of the balloon and other aspects of the funding will be subject to lender approval.

GST is treated differently for the different credit products. With Chattel Mortgage the GST on the goods can be claimed at time of purchase. With Leasing and Rent-to-Own, GST is applied to the monthly payments.

All types of plant, machinery and equipment used in a commercial enterprise may be funded with commercial credit products.

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.

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.

Vessels acquired as assets for an enterprise can be financed with a choice of Leasing, Chattel Mortgage, Commercial Hire Purchase or Rent-to-Own.

Interest rates are different for the different credit products. The rate offered by a lender will be based on their assessment of the application. The rates shown by banks and lenders tend to be for applications with a good credit rating and for new vessels.

Sole traders are eligible to apply for commercial loans. Approval is subject to meeting the lender criteria. Where a sole trader has turnover below the threshold of the operation or where the sole trader does not have full documentation, they may seek lenders that do offer sole trader and low doc options.

Organisations can select the credit product that best suits their corporate set-up and approach to taxation, balance sheet and accounting methods. The products are Leasing, Chattel Mortgage, Commercial Hire Purchase and Rent-to-Own.

The treatment of tax varies with the selection of credit products. Leasing and Rent-to-Own have tax deductible repayments. Chattel Mortgage and CHP have a structure whereby the assets are depreciated and the value of the annual depreciation is a tax deduction.

Yes. The same credit products can be used to purchase new and used vessels. The interest rate and some conditions may be different for used compared with new purchases. Lenders assess rge age and condition of vessels when preparing offers.

Yes. All types of watercraft can be financed with marine credit facilities. That includes jet skis and other brands of PWCs.

Where a vessel and the trailer are purchased concurrently from the same supplier, there are lenders that will include both acquisitions in the one funding package.

The standard business credit application criteria includes minimum trading periods and to provide financials on the operation. Where new ventures do not have those financials, they may consider sourcing lenders and brokers that offer Low Doc and No Doc credit options.

Lenders will typically accept the vessel being purchased as the security for the funding. This is subject to approval of the application. Where a lender assesses an application at a higher risk, additional collateral by way of property or other assets may be requested.

Leasing is one of several facilities available for plane funding. The others are CHP, Chattel Mortgage and Rent-to-Own. The best option is the one that suits the accounting method, balance sheet strategy and tax approach of the company.

Rates vary on Chattel Mortgage and other credit products across the lender market. The rate offered will be based on the lender assessment of the application. Advertised rates can be used as a guide.

Yes. Helicopters and fixed wing planes can be funded with the choice of Chattel Mortgage, CHP, Leasing or Rent-to-Own.

Terms are typically negotiated with lenders and based on their assessment of the application.

Lease and Rent-to-Own have tax deductible repayments. CHP and Chattel Mortgage provide the main tax deduction through the depreciation of the aeroplane.

Where a new operator does not have all the financials to complete the standard commercial application form, they may seek lenders that offer Low Doc and No Doc options.

Buyers can use an online credit calculator to obtain estimates of funding prior to purchase. The results are estimates only.

Sole traders just setting up may not have all the documents and requirements to meet the criteria for banks and some lenders. To get approved, they may consider using a broker to source low doc and no doc funding through specialist lenders.

Where aviation funding is secured with a fixed interest rate, the rate will remain unchanged over the full term.

Commercial funding facilities allow for the aeroplane to form the security for many applicants. In some cases, lenders may request applicants provide additional collateral. This may take the form of property, personal guarantee or other assets.

Operators working for themselves have the choice of Chattel Mortgage, Leasing and Commercial Hire Purchase to fund motor vehicle purchases.

No. Being registered for GST is not essential for commercial funding applications but holding a current ABN is required.

The interest rates on motor vehicle funding vary with the different types of products and can vary for different applicants. Lenders assess each application on an individual basis and prepare their offer including the interest rate based on that assessment.

Courier contractors would be eligible to apply for commercial credit to purchase new vans.

To be eligible to apply for commercial credit, applicants must hold an ABN. Online traders with an ABN should be eligible to apply.

Where an individual working for themselves has had an application rejected due to not meeting lender criteria, they may seek specialist non-bank lenders that offer suitable funding options. Using a broker may assist with this process.

Yes. Once approved for funding, operators are entitled to the applicable tax deductions for the credit product selected. The tax deductions vary with the selection of commercial credit products. The monthly payments for Leasing are tax deductible. Chattel Mortgage and CHP deliver the major taxation benefit through the depreciation of the motor vehicle in line with the applicable ATO depreciation schedule.

Yes. Funding for both new and used vehicles is available for those working for themselves. The same credit products apply for used vehicles but the interest rate and conditions may be different for new and used vehicles.

Yes. Applications for funding can be submitted and approved prior to purchase of the vehicle. Applicants would need to provide an indication of the type of vehicle, new or used and an estimated of the amount required. When the purchase is confirmed, the loan offer would be amended to reflect the exact amount.

Yes. A balloon is an option on Chattel Mortgage and Commercial Hire Purchase. It is a percentage of the credit amount which is set aside for payment after all the monthly repayments are finalised.

Prior to purchasing a new vehicle and prior to applying for credit, buyers can use a credit calculator to see estimates of repayments. Calculators are generic devices and do not allow for individual aspects of an application and do not include lender fees and charges. Any offer may can be different from results received using a calculator.

The decision around which is the most suitable commercial credit product will depend on the accounting method used by the operation; the approach to income tax and GST; the strategy adopted for the balance sheet; and the overall objectives. It is highly recommended that operators refer to their accountant when making this decision.

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.

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.

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.

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.

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.

The vehicle is typically accepted as security with commercial vehicle funding. Some applicants may be required to provide additional security.

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.

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.

Yes. The minimum requirement for approval for commercial funding is to hold an ABN. Self-employed operators may not meet all the criteria of some lenders and may seek specialist lenders or brokers.

Used heavy vehicles can be funded with a choice of Chattel Mortgage, CHP, Leasing and Rent-to-Own.

The tax deductions vary across the selection of credit products. Lease and Rent-to-Own repayments are tax deductible. CHP and Chattel Mortgage provide a tax deduction via depreciation of the vehicle.

A balloon is an option with CHP and Chattel Mortgage. It is a percentage of the total loan amount which is due for payment in full after the final repayment is made.

All commercial funding applications are assessed individually and an interest rate offered by lenders. The rate for used vehicles may be higher than for new vehicles. The vehicle forms a part of the application assessment.

A used vehicle will be assessed as part of the application approval process. The age and condition are considered and that applies across heavy, medium and light duty vehicles.

Yes. Applications for used vehicle funding can be submitted and approved prior to purchase. Auction buyers may provide an estimate of the amount required and an indication of the vehicle to be purchased.

No. Registration for GST is not a requirement for commercial credit.

Yes. The age and condition of a used vehicle is assessed by lenders when considering the application for approval and to make a rate and credit offer. Older vehicles can attract good rates.

Yes. Used vehicle funding is available for cab only vehicles and for vehicle and trailer combined.

Yes. Self-employed enterprises may select Leasing for a new vehicle, where that product is considered best suited to their set-up. Other options include Commercial Hire Purchase and Chattel Mortgage.

Yes. To be eligible to apply for commercial credit, enterprises must hold a current ABN but GST registration is not an essential requirement.

Interest rates for motor vehicle funding vary with the selection of credit products; with different lenders; and with specifics of individual applicants. The rates shown by banks and lenders will be based on the purchase of new vehicles and for buyers with a good credit profile.

To be eligible for commercial credit, operators must have an ABN. An owner-driver courier with an ABN should be eligible to apply for funding for a commercial van.

The term approved for vehicle funding is subject to lender guidelines. The age and condition of the vehicle, the credit amount requested and credit profile of the applicant would be taken into account when a term offer is made.

Commercial credit products allow for the vehicle being purchased to be the security against the funds. Some lenders may request that small and self-employed operators provide additional security. This may be provided through a personal guarantee, property or other assets.

The tax benefits on commercial funding vary with the type of credit product. With Leasing the monthly payments are tax deductible. With CHP and with Chattel Mortgage, the vehicle is subject to depreciation based on the applicable ATO schedule. The depreciation determines the amount that can be claimed as a tax deduction each year.

Used vehicles can be funded with the same credit products as new vehicles. These include Lease, Chattel Mortgage and CHP. Rates, terms and conditions may vary for used vehicles.

Yes. Applications for motor vehicle funding can be submitted and approved prior to purchase.

Yes. A balloon is an optional inclusion with Chattel Mortgage and CHP. A residual is an option with Lease.

Buyers can use an online credit calculator to obtain rough estimates on funding repayments.

Commercial credit products vary in regard to suitability for accounting methods, taxation, balance sheet, GST and other aspects. It is advised that applicants discuss the decision with their accountant.

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.

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.

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.

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.

The results obtained using an online computation device are estimates only. They do not allow for individual differences with applications or for lender fees and charges. Any quotes can be different from the calculated estimates.

No. Use of an online credit calculation device is obligation free.

The result obtained with an online credit calculation device is not an offer or a quote. To obtain an offer, an application would need to be submitted to a lender or broker.

To compare different credit product options using a credit calculation device, enter the interest rate for that product.

Yes. The calculation device is a generic function which can be used for estimates on all types of commercial asset funding requirements.

The rate offered to an individual is subject to lender assessment of the application. For the purpose of obtaining estimates with an online calculation device, users can enter the rate as shown by the provider of the device.

HP without financials may attract a higher interest rate and other conditions. Applicants may use a credit calculation device for estimates, being mindful that their offer may be different from the results obtained.

HP is available for terms from 12mths/1 year to 84mths/7 years. Users can enter their preferred term when using an online calculation device.

HP credit has an option for a balloon which is a percentage of the total amount of the credit which is due for payment in full at the end of the term.

An online HP credit computation device can be used for estimates on all types of commercial assets including plant, machinery, equipment, trucks and motor vehicles.

Yes. All operators that have existing vehicle credit arrangements can apply for a new arrangement.

Refinancing is the process of replacing an existing credit contract with a completely new arrangement. The new arrangement is quoted on current rates and the current financial position of the operation is assessed.

The rate for all commercial vehicle funding is based on individual assessment of the operation and application. The goods would be considered as used when applying for a new arrangement and that may be at a higher rate than the advertised rate for new goods.

Yes. All new funding arrangements are subject to the tax benefits applicable to the credit product selected.

Yes. A balloon or residual may be funded by applying for credit.

When replacing existing funding with a new arrangement, the choice of products includes Chattel Mortgage, CHP, Leasing and Rent-to-Own.

Lenders do have maximum and minimum amounts that they provide funding for. The loan amount would be subject to lender approval.

Operators may seek a new funding arrangement to achieve a lower rate, lower repayments, improve the balance sheet or for other purposes.

Lower repayments may be achieved by requesting a longer funding term when applying for new credit arrangements.

The new funding arrangement may include fees and charges applicable to ending the existing credit term early. A calculator does not have the ability to allow for fees and charges. The rate offered may be different from the lender’s advertised lowest rates.