FAQs

Machinery used in the timber, land management and logging industry can be financed with Hire Purchase, Lease, Rent-to-Own and Chattel Mortgage.

The same credit facilities apply for all business assets. The specifics of the funding including the interest rate, terms and other inclusions can vary with individual lenders, aspects of used machines, and with varying business profiles and credit histories.

Self-employed operators with an ABN can be eligible for commercial asset financing. Where full documentation is not available, or where the operator does not meet standard approval criteria, they may seek a low doc option through specialist brokers.

Where accessories and a machine are acquired from the same supplier in the same purchase, generally the entire purchase cost can be incorporated into the one funding package.

To apply for a mulcher loan, businesses will need an ABN, ID and range of financial documents on the business. Credit histories are also checked.

Lease and Rent-to-Own payments are a tax deduction. The interest portion of Hire Purchase and Chattel Mortgage are a tax deduction. Chattel Mortgage and Hire Purchase derive a tax deduction through asset depreciation.

Operators can apply for financing prior to the purchase. Details of the machinery being purchased will be required and an estimate of the loan amount to obtain an offer and approval.

Interest rates on timber industry machinery funding vary with the selection of credit facilities, with lenders, and with the individual credit profile and financial position of the business. Rates can vary for new and used units.

Commercial asset acquisition funding is typically arranged with a fixed rate of interest which does not change over the funding term.

A balloon is a percentage of the loan amount which is due to be repaid after the final monthly payment is made.