FAQs

Additional battery storage for existing solar power systems may be financed with asset acquisition credit facilities, where considered suitable collateral by the lender. The options are Chattel Mortgage, Lease, Rent-to-Own and Hire Purchase.

Solar power systems may be financed with the business owner’s choice of Chattel Mortgage, Lease, Rent-to-Own and Hire Purchase. These products have varying features in regard to accounting method compatibility, ownership of the goods while under finance which affects the balance sheet, how tax deductions are realised, and interest rate. Operators should assess the features of each in regard to the objectives and accounting approaches used by their business to decide the best option.

Including assets and labour in the one funding package is subject to approval by individual lenders. Different funding products may be required as labour costs may not be considered suitable security for inclusion in an asset acquisition credit facility. Secured and unsecured business loans and overdrafts are available for non-asset business expenditure.

Interest rates on business financing are offered by lenders after assessing each application. The strength of the financials, turnover figures, and the credit history are all reviewed. Lenders display their current best rates which may be used as a guide.

All asset acquisition credit products have tax deductions but not all offer tax deductible payments. Chattel Mortgage and Hire Purchase have deductions when the asset is depreciated. Lease and Rent-to-Own do have deductible payments.

Many asset acquisition loans can be approved with the goods being financed as the sole collateral. This is subject to individual lender decisions after assessing the application.

New businesses that do not meet standard lender criteria for documentation, turnover and trading time, may seek low doc and no doc options through finance brokers.

Business owners can use an online calculator to obtain estimated payments on loans based on supplier quotes.

A balloon is an optional inclusion with Hire Purchase and Chattel Mortgage.

A balloon amount is due for payment after the final monthly payment is made.