FAQs

Find answers to common questions about finance, loans, and leasing services at Jade Finance. Our FAQs cover a wide range of topics to help you make informed decisions.
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Commercial Business Car Loans FAQs

  • The term approved on vehicle credit is subject to lender approval and guidelines. Up to 7 years is typical.

  • A balloon is a portion of the credit total which is payable in full after the final repayment. It applies to Chattel Mortgage and CHP.

  • Yes. SUVs can be funded with a choice of CHP, Lease or Chattel Mortgage.

  • The condition of a used vehicle will be assessed by lenders and may in some instances, impact the rate and credit terms offered. This is subject to lender guidelines.

  • Yes. Pre-approved credit is available through most lenders.

  • Using an online credit calculate can assist buyers work out repayment estimates on different priced vehicles for comparison purposes.

  • Operators should review the features of each credit product, especially the suitability to either accruals or cash accounting methods when deciding which is the most appropriate option for their set-up. Speaking with an accountant is advisable.

  • The selection of credit products – Chattel Mortgage, Lease, CHP, is the same for all types of motor vehicles to be used for work purposes.

  • Trading time can be an approval criteria for some banks and lenders. Some lenders will approve applications based on 6 months of turnover figures. Operators without financials can seek lenders that offer no financials credit through brokers.

  • New set-ups that do not have full financials and/or do not meet lender criteria can seek low doc and no doc options through brokers and special lenders.

  • The interest rates are different for Leasing and Chattel Mortgage and CHP. The rates may also be different when the lender assesses each application. Lenders will usually show their lowest rate to use as a guide.

  • The tax benefits vary with credit products. Lease repayments are deductible. Chattel Mortgage and CHP repayments are not deductible except for the interest portion. These two products deliver a deduction through the depreciation of the vehicle.

  • Both Leasing and Chattel Mortgage are widely used and very effective vehicle funding facilities. The decision as to which is best is based on the suitability of each to the accounting methods and approach taken by the entity.

  • Yes. An ABN is the minimum requirement to be eligible for commercial credit.

  • Vehicles used for work purposes may be purchased with the choice of Commercial Hire Purchase, Leasing or Chattel Mortgage.

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