FAQs

Operators of bake houses can select from Lease, Rent-to-Own, Hire Purchase and Chattel Mortgage to fund equipment for their business.

Interest rates on commercial finance vary with the type of credit facility and for individual businesses. Business with good credit history are typically offered the best rates. Operators can use rates displayed by lenders as a guide for planning and budgeting.

All commercial enterprises with an ABN may be eligible for commercial credit. Lenders have varying criteria for approval which can include full financials for at least 1-2 years and being in operation for at least 1-2 years. Where a new business does not satisfy the criteria, they can source low doc and no doc funding through brokers.

A balloon payment applies to Hire Purchase and Chattel Mortgage and is due to be paid in full after the last monthly payment is finalised.

The way tax deductions are realised varies with the different credit facilities. Hire Purchase and Chattel Mortgage deliver tax deductions through depreciation and have deductible interest. Rent-to-Own and Lease have tax deductible monthly payments.

All types of assets required by a commercial operation, including point-of-sale systems, may be purchased with finance.

Second-hand assets can attract different interest rates and loan terms and conditions to loans for new goods. The same credit facilities can be used for new and second-hand goods.

Including the full acquisition cost of equipment in a loan is achievable, subject to individual lender approval.

Finance terms are subject to individual lender guidelines and approvals. Up to 7 years is typical for the commercial market.

A wide range of assets may be financed with commercial loans. These can include the mixing machines, ovens, refrigeration equipment, storage and shelving, displays, IT and other items.