FAQs

Lease is one of several credit options which also include Chattel Mortgage, Rent-to-Own and Hire Purchase. Deciding which is the best facility for an individual business requires assessing the features of each against the accounting strategies and practices and objectives of the business.

Asset acquisition finance products typically offer lower interest rates than overdrafts, making a loan potentially a more cost-effective choice. Overdrafts can have greater flexibility with the ability to pay down amounts when possible, while loans have fixed repayment terms. It is advisable for business owners to talk with their accountant in selecting financing products.

Tax deductions are available on all commercial credit products. The way a deduction is made varies with the credit product – Lease, Rent-to-Own, Hire Purchase and Chattel Mortgage.

Subject to lender approval, the goods being financed can be the sole source of collateral for many loans for many businesses.

Financing is available for all business assets including computers and furniture.

Business owners can use online loan calculators to generate estimates on financing to assist with their planning and budgeting.

A balloon is an optional inclusion with Hire Purchase and Chattel Mortgage. It is due for payment in full after the last monthly repayment is finalised. Balloons may be refinanced, subject to lender approval.

Subject to individual lender approval of the application, the full purchase price of business assets may be included in a finance agreement.

Office furniture may be financed with the operator’s choice of Hire Purchase, Rent-to-Own, Lease and Chattel Mortgage.

To apply for commercial finance, businesses will require an ABN and ID. Financial documentation to verify the business credentials are required. Documents include income tax returns, BAS returns, annual accounts, turnover figures, profit and loss statements, and bank statements.