FAQs

Yes. To be eligible to apply for commercial credit an ABN and ID are the minimum requirements.

Commercial operators can apply to banks, non-bank lenders or work through a business finance broker to secure asset funding.

Tax deductions vary with the loan type. Chattel Mortgage and Hire Purchase deliver a deduction when the asset is depreciated and interest payments are also deductible. Payments for Rent-to-Own and Leasing are fully deductible as business expenses.

Operators can use a finance calculator to obtain estimates on equipment financing repayments to compare different credit products, different rates and varying loan structures.

The commercial credit application requires an ABN, ID and a range of documentation on the financial and trading position and history of the business. These documents include annual accounts, tax returns, BAS statements and similar. The credit profile of the operation will also be reviewed by the lender. A good credit profile and meeting lender criteria for turnover and financial position determine approval, rates and terms offered.

Earthmoving and other yellow goods may be funded with the operator’s choice of Lease, Hire Purchase, Rent-to-Own and Chattel Mortgage.

Deciding which loan type to choose between Lease, Hire Purchase, Rent-to-Own and Chattel Mortgage, depends on the accounting method used by the business; the approach to tax and the balance sheet and other financial objectives. It is advisable to discuss the decision with an accountant.

Interest rates on equipment loans vary with lenders, loan types, the profile and financial position of the business and can vary with different industry sectors. Lenders typically display their best rate for good credit applications.

The loan term offered can vary with lenders and specifics of the equipment and the application. A 7 year term is typical for commercial asset acquisition financing.

Equipment being financed can be used as the collateral for the loan. Some applicants may be required to provide additional collateral, subject to individual lender criteria.