Frequently asked questions
Business Finance FAQ’s

Assets such as machines for businesses can be financed with a choice of credit products. Asset acquisition funding products are:- Chattel Mortgage, Leasing, Rent to Own and CHP.

The interest rates on finance for machines and equipment vary with the different funding products. The rates offered to individual operators will vary based on the lender assessment of the application. The rates displayed by banks and lenders can be used for guidance and planning purposes.

Yes. Sole traders and self-employed operators are eligible to apply for commercial financing for new machines. Not all lenders offer options for sole traders but many do. Engaging the services of a broker may assist in sourcing an appropriate lender.

Operators without financials that require finance for machines can seek lenders that offer no doc and low doc options. These allow approval without all the documentation that is requested by many banks and lenders. Brokers can assist business owners to connect with these lenders.

The tax deductions vary with the different types of finance. With Leasing and Rent to Own, the monthly payments are tax deductible. With CHP and Chattel Mortgage, a tax deduction is realised when the machine is depreciated as an asset. Interest on CHP and Chattel Mortgage is tax deductible.

Operators requiring a financing solution for a large-scale operation upgrade may require a structured package or separate funding contracts for individual goods. Consulting with a broker may assist operators connect with suitable lenders and structure a workable solution.

Not usually. The interest rates displayed by banks and lenders will typically be for financing new machines. Second hand machines can attract a higher rate in some circumstances. The age, the condition working life of the machine will be considered when the rate and the financing terms are offered.

To apply for commercial financing, business operators must have an ABN. Being registered for GST is not an essential requirement but may be considered in a positive view by some lenders. Financial documentation such as annual accounts, tax returns, BAS returns and similar financials are requested. Details of the machines being purchased should be provided with the application.

The repayments on a specific financing deal will depend on the interest rate, loan amount and loan term. The rate will be subject to an offer from a lender. Estimates of repayments based on different values can be obtained using a lending calculator. These are available on lender and broker websites.

A balloon is an amount of the total loan requested that is set aside and due for payment in full after the last monthly repayment is finalised. It is an option with Chattel Mortgage and CHP.

There is no best credit product for specific goods. The best option is the financing product which has the features and tax benefits that best meet the requirements of the business operation.

The same finance products are applicable for asset acquisitions across all industries – Chattel Mortgage, Leasing, CHP and Rent to Own. The interest rates can differ for goods and applicants in different industries.

Where a new operator does not have all the financials that lenders typically require for the application, they may seek no doc and low doc options through specialist lenders. Brokers can assist business owners to access these lenders.

Deriving financing options using a calculator is only designed to be used as a guide. The interest rates displayed by lenders will be for good credit rated applicants and for financing new goods. The lender will assess each application and arrive at the rate they are prepared to offer that applicant, based on their assessment. That rate can be different from the rates used with a calculator.

The financing term can vary depending on lender approval. The maximum for most asset and equipment financing is typically 7years/84months.

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.

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 online calculation device only provides estimates and does not allow for lender fees or credit rating of the users. The results are estimates and quotes may be different.

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

By entering the different interest rates, users can compare estimates for Leasing and Chattel Mortgage acquisitions.

The rate offered to individuals may vary from the lender’s advertised rate. For the purpose of calculating estimates, users can input the advertised rate or another rate.

Loans for all types of assets may be calculated with an online device. This includes machinery, plant, equipment, trucks and motor vehicles.

No. Tax deductions are realised when the annual income tax return is prepared for the enterprise.

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

To lower the repayment estimate the loan term can be extended, the loan amount can be reduced or the balloon increased.

A balloon is a percentage of the total amount that is due for payment at the conclusion of the credit term.

The online credit calculation device does not have a memory. If users would like to refer to the results later, they should make notes of each calculation.

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.

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.

New operators can apply for commercial lending. To complete the standard application form, operators are required to provide documentation on the financials for the enterprise. Where a new operator does not have financials, they may seek no doc low doc options from lenders and brokers.

Machinery to be used in an agricultural setting can be funded with asset acquisition funding products. These are Chattel Mortgage, Lease, CHP and Rent-to-Own.

Yes. Applications for commercial funding can be submitted and approved before the machines have been purchased. An estimate of the amount required can be provided along with details of the type of machinery.

The interest rate varies with different funding products – Chattel Mortgage, Lease, CHP and Rent-to-Own. Rates can also be different for different applications as lenders will assess each application when preparing an offer. Operators can use rates displayed by lenders as a guide.

The repayments for Lease and Rent-to-Own are full tax deductible. Tax deductions are realised on CHP and Chattel Mortgage through the depreciation of the machinery according to ATO schedules.

GST is treated differently with different products. GST is applied to Lease and Rent-to-Own payments and can be claimed on the appropriate BAS returns. With Chattel Mortgage and CHP products, the GST charged on the purchase of the machinery is claimed on the next BAS after purchase. No GST is then charged on the repayments.

The machinery being acquired is typically accepted as the security for commercial lending products. Where a lender does request an operator provide additional collateral, that can be provided as property or other assets.

An online calculator is set-up only to provide general calculations based on the values typed in by the user. Lender fees and charges are not included. No allowance can be made for the credit profile of the user. The results are only estimates and can differ from any offer made.

A balloon is an option with Chattel Mortgage and CHP. It is a percentage of the total amount of the funding that is due for full payment at the end of the term.

Attachments and accessories for harvesters and other machinery may be included in the machine funding where they are purchased at the same time and subject to lender approval.

Commercial lenders typically fund all types of machines and devices required for medical imaging. This may include but not be limited to:- x-ray and ultrasound machines; CT, MRI and body scanners;  digital imaging machines and systems; mobile radiography units; and ancillary equipment and accessories such as software. Funding options are also available to cover installation, commissioning and training expenses.

Commercial lending products include a portion of the total amount set aside and due for payment at the end of the funding term. With Chattel Mortgage and CHP this is referred to as the balloon, with Leasing the residual and with Rent-to-Own the final payment is the buyback.

Interest rates are different for the credit products available. Rates can also vary for individual applicants. Lenders assess each application and consider the assets being acquired when making an offer including the interest rate.

A range of credit products are available for funding imaging machines – CHP, Lease, Chattel Mortgage and Rent to Own. They vary in regard to accounting measures and practices. The most suitable product will be the one that fits with the accounting method and meets the objectives of the practice.

The costs of installing and commissioning imaging machines may be funded. Some lenders may approve these expenses in the acquisition funding. Others may offer an alternative credit option such as secured or unsecured credit for these expenses.

The tax arrangements for commercial credit products vary. The repayments on Leasing and Rent-to-Own are tax deductible. Chattel Mortgage and CHP repayments are not deductible except for the interest portion. Assets financed with Chattel Mortgage and CHP are depreciated in line with ATO rulings and the depreciated value is deducted from taxable income.

Treatment of GST varies with the different credit products. GST is charged on Lease and Rent-to-Own repayments, ex the interest portion. CHP and Chattel Mortgage do not have GST added. The GST on the machines is claimed at the time of purchase and no GST is therefore applicable to or can be claimed on repayments.

Commercial lending for imaging can be obtained on a no deposit basis, subject to lender approval. This means the full acquisition cost can be included in the funding.  

Credit terms can be negotiated with the lender and are subject to lender approval. Asset acquisition funding typically can be available for terms of up to 7 years.

Commercial lending products are typically approved with the goods being acquired providing the security. In many cases, no additional security is required. This is subject to lender approval and acceptance of the goods as suitable collateral for the credit.

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.

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.

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.

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

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

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

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

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

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

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

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

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

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

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.

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.

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.

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.

Yes. Most specialist credit providers operate via email and phone. This allows access for clients in all areas where online connectivity is available.

Yes. The service offerings may vary with some credit providers. But in general terms, all commercial enterprises may use their services.

No. A referral is not required to contact licensed credit providers.

A credit provider sources funding for vehicle acquisitions. An accountant primarily deals with preparing the business accounts and associated activities. Some accountants may source funding on behalf of clients.

Specialist credit providers can access more lenders than operators can on their own. They have industry-level contacts which enables negotiating on rates and conditions. Providers may have leverage with individual lenders as a result of the business they write. This provides opportunities to source lower rates.

No. All quotes and offers are subject to acceptance by clients. No commitment is made until a contract is signed.

Most specialist credit providers will work with the lender of choice of clients where a preference is indicated.

Yes. Specialist vehicle credit providers generally handle financing for all types of vehicles, both single unit acquisition and complete fleet upgrades.

Specialist vehicle credit providers offer a full portfolio of credit products. These include Chattel Mortgage, Lease, Hire Purchase and Rent to Own. Some will also offer low doc and no doc solutions and other options.

Accreditation is the approval given by a bank and other lenders to a specialist credit provider. It allows the provider permission to contact and work with the lender to source credit on behalf of their clients.

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.

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.

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.

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.

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.

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.

Yes. In general terms, anyone operating with an Australian Business Number can apply for specialist finance products. These may include in creative fields that are freelancing, source work through online platforms or outsourced projects.

Yes. All types of motor vehicles including vans are eligible for financing for owner-operators. There are a number of products that may be suitable including Chattel Mortgage, Leasing Commercial Hire Purchase and Rent to Own.

Holding a current Australian Business Number and identification are minimum requirements for commercial credit. Applicants will be requested to provide what accounts and financials they have accrued. These may include bank statements, tax returns, accounts spreadsheets and similar. The quantity of documents provided will determine if a low doc option may be required.

No. Being registered to claim and pay GST is not mandatory o be eligible for commercial financing. Businesses with an annual turnover of $75,000+ must, under Australian law, register for GST. GST registration may be viewed in a positive light by some lenders. Details on how to register for GST are available through ASIC.

No. Loans obtained on the basis of holding an Australian Business Number are not the same as bad credit finance. Businesses may have a good credit rating but not meet all the criteria to be approved by many banks and lenders. This may be due to trading time, turnover level and other factors.

Many types of business structures may be eligible for financing based purely on holding a current Australian Business Number. They may be freelance, contractors, subcontractors, SMEs, larger entities and other similar set-ups.

Yes. Once approved for a commercial finance product the operation can claim the relevant tax benefits. The tax deductible elements of different credit products vary.

Credit products available for operators seeking financing based on holding an Australian Business Number include Chattel Mortgage, Leasing, Hire Purchase, Rent to Own, Overdraft, Secured and Unsecured options and some specialised credit products.

Yes. The acquisition of equipment of all types used in an enterprise may be eligible to apply for self-employed credit. A range of credit products are available including Chattel Mortgage, Lease, Commercial Hire Purchase and Rent to Buy. Rates, terms and conditions can vary for new and used equipment. This should be stipulated in the application.

Interest rates on commercial credit are offered after an assessment of the application by lenders. Rate vary across the lending market. Applicants with a good credit profile and with proven ability to repay the financing may receive a lower interest rate. The rates advertised by lenders are typically the best rate available. These rates may be used by applicants for planning and budgeting purposes.

Banks may reject commercial credit applications based on numerous factors, despite full documentation being provided. These factors may include the level of turnover, credit profile, strength of cash flow, amongst others. There are lenders in the commercial lending market that do approve applications where a bank may not. Self-employed operators may benefit from engaging with a finance broker to assist with suitable options.

Yes. The trading time of an operation can form part of the application assessment process. Some banks and other lenders may have minimum trading periods to approve applications. New businesses may seek lenders that do offer finance for those that have only been trading for a short period.

The terms approved and offered on all types of commercial finance are subject to lender approval. The term may be offered based on the strength of the application and the ability of the applicant to furnish the funding. Some lenders will offer up to 7 year terms for asset acquisitions funding.

To support cash flow for businesses with clients that have long terms to pay invoices, Debtor Invoice Funding is available through specialist lenders. This is a specialist product which is structured to suit the requirements of the operation. It allows the business to receive a percentage of invoices at the time of issuing and the balance when the client finalises the payment.

Funding for operators with an Australian Business Number is available across all industries. Some lenders may specialise in certain areas while others will offer credit on a more general basis.

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.

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.

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.

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 full range of asset acquisition funding products are available for washers and dryers and other laundromat equipment. These include Rent to Own, CHP, Lease and Chattel Mortgage.

The interest rates are different for the different credit products. Rates will differ for different applicants as lenders assess the credit profile, amount requested and other details in preparing a funding offer. The advertised rates can be used as a guide prior to application.

Some banks and lenders have a minimum trading period of 12-24 months and full financials to get approved for funding. New operators may seek low doc and no doc option through specialist lenders.

Applicants without financials can seek no doc and low doc specialist funding through non-bank lenders and brokers.

All commercial funding include tax deductions. The monthly payments on Leasing and Rent to Own are tax deductions. Depreciating the washers and dryers financed with Chattel Mortgage and CHP represent the tax deduction.

Yes. Commercial lenders and brokers typically work with clients to combine multiple units being purchased at the same time from the same supplier into the one financing arrangement.

The same credit products that are available for new machines are also available for used machines. But the interest rate can be different for used machine financing.

A balloon is relevant to CHP and Chattel Mortgage. It is a portion of the loan amount that is due for payment in full at the end of the financing term. A balloon may be refinanced.

When applying for funding, applicants typically discuss the term of the funding with the lender or broker. All terms are subject to lender approval. Terms of up to 7 years can be approved for some applications.

Yes. Applications can be submitted and approved prior to purchase. Pre-approved funding is approved based on an estimated amount with the exact details finalised after purchase.

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.

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.

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 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.

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

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

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

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

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

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

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

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

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

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

The 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.

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.

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

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

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

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

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

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

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

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

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

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

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.

No. It is not necessary to apply to the bank where transaction or other accounts are held. Applications for commercial credit can be made to any banking institution that offers the required type of credit product.

Not necessarily. A better interest rate may not necessarily be offered from the bank where current accounts are held or from banks which a company has previously dealt with. While customer loyalty is valued by many organisations, the banking sector has strict guidelines around credit approvals. Applications will be assessed and the rate offered, will be made based on the details in the application, the risk assessment and credit profile of the applicant.

Both banks and non-bank lenders can offer competitive rates and suitable offers on commercial credit. The best offer for commercial funding would be assessed as the one that best meets the specific needs and requirements of the applying company. It may be the one with the lowest interest rates, the most accommodative conditions or the most suitable term.

Where a sole trader, ABN holder or other type of entity has a credit application rejected by a bank, they may consider other options such as the non-bank sector. Non-bank lenders may have less strict guidelines, may be more flexible and may be in a position to approve the application. Companies may consider using a broker to access suitable credit sources to meet specific requirements.

Banks generally offer a comprehensive selection of products to service the Australian commercial sector. These include asset acquisition credit (Chattel Mortgage, Lease, Rental), overdrafts, secured and unsecured products and lines of credit. The specific products can vary from bank to bank.

Banks can be very competitive with interest rates on commercial funding products, as can non-bank lenders. The interest rates offered can be seen on the lender website as a general guide. These rates will be on new goods and for good credit customers. The rate offered will be based on an assessment of the risk, the goods being acquired and other aspects of the application.

All lenders – bank and non-bank, will have their own guidelines for credit application approvals and varying processes for approvals. Banks are afforded banking status under an Australian Law and as such must abide by certain rulings and guidelines. Non-bank lenders are not regulated under those same rulings and may be in a position to be more flexible in approving applications. The ease at which an application is approved will depend on the complexity of the credit being sought, specifics of the application and the processes utilised by the lender.

There is no need to switch banks if funds are sourced from a bank that a company has never dealt with. Transaction and other accounts and investments can stay with the existing bank while credit is sourced and repaid to another bank.

The guidelines of individual banks will determine if ABN holders are eligible for their credit products. Some banks may have minimum requirements which the ABN holder does not meet. Some ABN holders will be in a position to meet all the criteria for commercial credit as set by banks. It may depend on how long the ABN holder has been trading, the strength of the cash flow, the size of the funds requested and the balance sheet position.

Low Doc and No Doc products are for entities that do not have all the financial documentation that is usually required by banks for commercial credit applications. Not all banks will provide this kind of financing. Where not available through a bank, Low Doc and No Doc options may be sourced via a broker and through a non-bank lender.

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.

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.

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.

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.

With equipment leasing the lender retains ownership of the goods being leased. As such the lender would claim the GST on the purchase price. GST is then charged on the monthly lease payments excluding the interest portion of the payment. The GST is claimed on the relevant BAS return by the borrower.

There are two types of accounting methods used by an enterprise – accruals and cash accounting. With the cash method, the payments received and payments made by the entity are recorded in the accounts on the date of the transactions. On the other hand, with the accruals method, the accounts payable and accounts receivable are entered into the books or accounts when the invoice is received or issued. Invoice amounts are entered when the invoice is issued to the customer. Bills owing are recorded as debits when received, whether paid at that time or not.

Equipment leasing interest rates displayed by lenders would typically be the best rates available, for new goods and for enterprises with good credit. In order to receive an exact interest rate, an application would need to be processed and quote requested from a lender. Interest rates offered are assessed based on the application details and the goods being acquired. Rates may vary on equipment based type and industry.

The lender retains ownership of goods under lease until all payments are finalised. When all the monthly lease payments are finalised and the residual paid out, the lender transfers ownership to the borrower.

Yes. Leasing is widely used for the purchase of motor vehicles, both new and used, of all kinds. The suitability of a finance product is considered in regard to aspects of the borrowing enterprise. These aspects can include the accounting method, approach to the balance sheet, treatment of GST and tax and general financial objectives.

To select the most appropriate type of finance, enterprise owners are encouraged to refer to their accountant or financial advisor. The decision is based on compatibility and suitable of leasing or another product for the objectives of the enterprise; the method of accounting used; the approach taken by the business to taxation including GST; and the balance sheet approach.

Yes. Lease payments are classified as a business expense by the ATO and are tax deductible. The payments made in a financial year are treated as deductions when the annual accounts and business tax return is prepared at the end of the financial year.

The interest rate on equipment leasing is a fixed interest rate. The rate remains fixed and unchanged for the full term of the lease. The rate does not vary or change when the Reserve Bank makes changes to the official cash rate or when the lender changes the rates offered.

The selection of asset acquisition finance products attract different interest rates which may be used as a gauge as to the cost of the loan. The lowest interest rates usually apply to Chattel Mortgage and Hire Purchase. The interest rate for leasing is typically higher than these but lower than Rent to Own.

Yes. Refinancing is the process of replacing an existing finance arrangement with a new loan. When refinancing is applied for, the enterprise owner may select which is the most appropriate form of finance for their venture and the goods being refinanced.

Being registered for GST is not a pre-requisite to being eligible for commercial loans including leasing. Applicants must hold a current ABN and produce identification.

The minimum and maximum loan amounts for leasing vary across the lending market and will depend on aspects of the individual finance application. Lenders will have their own guidelines as to the minimum and maximum amounts they offer in leasing. The assessment of the application in the approval process will also determine the leasing amount approved for an individual enterprise.

Yes. Leasing is widely used for financing both new and used vehicles of all types. The age and condition of the vehicle will form part of the application approval process and this may influence the interest rate offered, the leasing term and the loan amount approved.

Leasing rates can vary depending on the assets being financed, the industry sector and specifics of the borrowing business. The interest rate offered by a lender for motor vehicles may vary from the rate offered for equipment.

All commercial entities with an ABN may apply for commercial funding facilities. That includes sole traders, self-employed, SMEs and large organisations. The suitability of a particular funding product to a particular enterprise depends on compatibility with accounting practices and objectives.

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

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

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

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

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

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

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

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

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

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

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.

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.

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.

The purchases to equip a workplace would generally be considered asset acquisitions. The purchases may be funded with the selection of products available which include Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. Where the goods are not considered suitable for these products, secured and unsecured business funding may be considered.

The interest rates on commercial lending vary with the products available and will be offered based on the individual applicant’s profile.

Start-up enterprises may not have the financials required for commercial funding applications and may not meet the criteria for some lenders. Where this is the case, they may seek brokers and lenders offering low doc and no doc funding.

Funding is available for the purchase of items such as desks, workstations, visitor and staff seating and other requirements. Individual items may be below the minimum lending amount for commercial lenders. Packaging numerous items purchased from the one supplier into the one funding solutions may be sought.

The tax deductions available on commercial lending vary with the different credit products. CHP and Chattel Mortgage include a deduction through depreciation of the asset in accordance with ATO schedules. With Rent to Own and Leasing the monthly payments are tax deductible as a business expense.

Commercial funding is available for the purchase of computer and IT systems. Separate products may be required for the hardware and software components in some instances. Chattel Mortgage, CHP, Leasing, Secured and Unsecured options may be considered.

Yes. Commercial credit products are available to fund the purchase of second hand workplace machines and furniture.

A balloon payment with Chattel Mortgage is a percentage of the funding total which is due for payment when the final repayment is made.

For budgeting and planning purposes, an online commercial funding calculator may be used to obtain rough estimates on credit repayments.

Commercial credit products vary in suitability for accounting methods and measures, the approach to the balance sheet, taxation and interest rates. It is advised that operators discuss the choice of product with their accountant to confirm which will best suit their objectives.

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.

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.

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.

Yes. Sole traders would be considered as smaller enterprises when applying for finance. Smaller enterprises can include sole traders, self-employed operators, contractors, owner-operators, micro operations and enterprises with up to around 20 employees.

Smaller enterprises have a choice of the full portfolio of funding products for the purchase of machinery and other goods. The selection includes Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent-to-Own.

No. Interest rates are offered based on the lender’s assessment of individual applications. Many smaller enterprises with complete financials, good credit profile and strong turnover can be offered highly competitive, lower rates.

Yes. IT would be considered as the type of goods for asset acquisition funding. One person operations or micro enterprises, are eligible to apply for commercial funding.

Yes. Owner-operators acquiring excavators would fit the profile for funding as a smaller enterprise. All kinds of construction and building machinery may be financed with commercial credit products.

Interest rates applicable to credit for smaller enterprises would be determined by the lender. All applications are individually assessed. Operators may use advertised rates as a guide to the lowest rates achievable.

To apply for commercial credit, enterprises must have an ABN and provide financials and documentation on their operation. Documentation includes tax returns, BAS returns, annual accounts, trading spreadsheets, banks statements and similar. Where financials are not available, operators may seek lenders that offer No Doc and Low Doc options. GST registration is not essential.

Yes. All commercial credit products for asset acquisition have tax deductible components. With Rent to Buy and Lease, the repayments are fully deductible. With CHP and Chattel Mortgage, a tax deduction is received when the asset is depreciated in line with the relevant ATO depreciation scheduling.

Yes. Funding for yellow goods, wheeled good and other machinery used in the construction sector may be purchased with funding for smaller enterprises. Smaller enterprises can include sole traders, self-employed, owner operators and enterprises that employ others.

The term for the financing may be subject to lender approval. It can depend on the amount requested, the credit history of the applicant, the risk assessment and an assessment of the goods being acquired. Terms of up to 7 years can be approved.

Yes, subject to lender approval. Including the full purchase price in funding is referred to as no deposit financing.

The collateral required for funding is subject to lender assessment of the individual application. With many applications, the goods being funded form the security for the finance and no further collateral is required. For small enterprises, some will be required to provide a personal guarantee.

Yes. Applications for finance for machinery can be submitted and approved prior to the purchase. The loan amount is estimated and finalised after purchase. As interest rates and finance conditions can vary with different goods and industries, an indication of the details of the goods would be required.

All kinds of goods, assets and machinery to be used in a commercial enterprise may be financed with commercial credit.

Yes. A balloon is an option with Chattel Mortgage. It is a percentage of the amount requested in the loan, which is due for payment in full after the last monthly payment is made. When approved for Chattel Mortgage machinery finance, operators may select the balloon option.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yes, 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.

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.

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.

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.

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.

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.

No doc commercial finance is the category of funding for applications submitted without all the usually required financials and trading records. This type of funding may be required by operators that are setting up a new venture, those that have been trading for less than 12 months and anyone that has not acquired financials such as annual accounts and tax returns.

Yes. Where a self-employed operator does not have all the financials to complete a credit application, they can seek specialist options which require little or no financials.

All commercial credit applications must include the ABN details of the enterprise and identification of the operation and operator. Where no financials are available, operators may submit an application based on the turnover figures they have acquired. What other records are available such as tax returns, BAS returns and bank statements, they should be provided.

Where an application with no financials is approved, operators may select their preferred credit product. The selection includes Chattel Mortgage, Lease, Rent to Own, CHP, secured and unsecured options.

Yes. Operators with no financials requiring funding to purchase new construction equipment may apply for funding without the financials. Equipment may be purchased with a number of asset acquisition products such as Chattel Mortgage and Lease.

The interest rates applicable to applications without financials will typically be higher than the best rates advertised by banks and lenders. The specific rate offered will be decided after the lender assesses the application based on the information and documentation provided.

Yes. Funding can be sourced, without submitting financials in the application, for the purchase of all kinds of vehicles to be used in an operation. That can include delivery vans, utes, SUVs and passenger cars.

Rates offered to individual operators on funding applied for without financials will vary. The rate for equipment acquisition funding will be derived based on both the credit profile and other aspects of the application as well as the age and condition of the equipment. Used models can attract higher rates than new models. Rates can vary for different industries.

Yes. Chattel Mortgage is widely used by many kinds of enterprises for the purchase of all kinds of plant, machinery, equipment and vehicles. Operators without financials can apply for Chattel Mortgage through specialist non-bank lenders or via brokers.

Yes. There are tax benefits available on all types of commercial credit products. These benefits differ with the different products. When an operator is approved for credit without submitting financials, they may realise all relevant tax benefits, subject to ATO rulings.

The best type of commercial credit product for a business is the one with the features that best suit their set-up, objectives and approach to taxation and balance sheet and accounting method. Operators are encouraged to speak with their accountant if in doubt as to the best product for their specific needs.

Not all lenders will offer credit options for operators without financials. This type of loan is available through the non-bank lending sector. These lenders often do not work directly with clients but via a selected network of brokers. Operators may seek the assistance of a broker to identify the appropriate lender to suit their application and requirements.

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.

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.

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

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

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

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

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

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

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

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

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

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

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.

Funding without a downpayment means borrowing 100% of the purchase price of a vehicle.

When a dealer requests a holding deposit, typically the holding funds can be returned/refunded to the buyer when 100% of the purchase cost is settled by the lender.

Some brokers and lenders will approve accessories and options to be included in 100% vehicle funding. Subject to lender approval.

Yes. Where the vehicle and trailer are acquired as a single purchase from the same dealer, the total cost should be able to be included in the funding.

Buyers requesting 100% purchase price funding may select from Leasing, Rent-to-Own, CHP and Chattel Mortgage.

Buyers can use a online credit calculator to calculate estimates to assist with decisions around 100% funding.

Rates are subject to lender assessment and approval. The higher loan amount of 100% funding may influence the rate offer by some lenders. The rate will be subject to the strong financials and good credit profile of the applicant.

Yes. All features and benefits of the selected credit product are available with 100% purchase price funding.

Approval of 100% purchase price funding on used vehicles is subject to lender approval. The age, condition and value of the vehicle will be considered when an offer is prepared.

Where delivery charges are included on the invoice from the dealer for the vehicle, typically this cost could be included in the funding.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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.