FAQs

Lease is one of several asset acquisition credit facilities which may suit the fixtures and fittings required for a fit out. The other facilities are Chattel Mortgage, Commercial Hire Purchase and Rent-to-Own. The most effective is the loan type that suits the accounting approach and financial objectives of the business.

Design consultant costs would be a non-asset expense. These types of business expenses may be financed with a Secured or Unsecured Business Loan or an overdraft.

Asset acquisition finance products offer tax deductions which vary with the different credit facilities.

Equipment under finance may be used as collateral for the loan. Whether additional collateral is required is subject to lender assessment of the individual application.

Where installation costs are provided by the same supplier and on the same invoice as the equipment, the entire cost may be included in the same loan. Where installation is being provided by a different supplier, a separate Business Loan may be required for the cost.

Business owners can use online finance calculators as provided by brokers and lenders to obtain repayment estimates for budgeting.

Interest rates vary with different loan products, with different lenders and with different applications.

No deposit financing is subject to the lender assessment of the application. Businesses with strong applications can be approved to include the full cost in the loan.

New businesses may not meet the standard criteria as set by banks and some lenders. This criteria typically includes having turnover and trading figures for a minimum of 12 months. They may seek No Doc and Low Doc loans through brokers and specialist lenders.

Commercial credit applications require businesses to provide documentation on their financial position. These documents include tax returns, bank statements, profit and loss statements, turnover, asset and liability schedules and similar. An ABN is required.