FAQs

Lenders assess finance applications individually for creditworthiness. The interest rate offered to businesses can differ based on credit profile and financials rather than the type of operation or set-up.

Chattel Mortgage and Commercial Hire Purchase offer the lowest rates. Leasing rates are slightly higher. Rent-to-Own has the highest rate of commercial funding facilities.

Lenders set their own rates based on their costs for funding, confidence in the sector, the RBA cash rate and economic trends and forecasts. Lenders have their own guidelines for setting rates and this results in variations across the market.

Yes. Credit checks are an integral part of the finance application process and can affect the interest rate offered.

Using a loan calculator allows operators to convert interest rates into repayment estimates. The results obtained with these online devices are estimates only.

There can be variations in the interest rates on finance offered for operators in different industry sectors. This reflects lender willingness to lend to that sector and may reflect their confidence in the sector based on economic forecasts.

Lenders typically advertise their best rates. These best rates will be for new equipment assets and for operators with good credit ratings. Where an applicant has a less than good rating, a higher rate may be offered. Higher rates may apply to used compared with new equipment.

Equipment finance facilities are typically arranged with a fixed interest rate. The rate does not change over the loan term.

Yes. Interest on asset acquisition finance is a tax deductible business expense on all funding facilities.

The interest rate along with the loan amount and term are used to determine the monthly repayment, as well as lender fees and charges. Higher rates lead to higher repayments, lower rates deliver lower monthly repayments.