FAQs

Used equipment would need to be approved as acceptable collateral for secured funding. Many good quality second-hand machines can be approved for secured funding.

Collateral is the security or guarantee provided by borrowers to get approved for a loan. Collateral may be goods such as vehicles, boats, equipment, trucks, and other items of value, or real estate property.

Where a borrower chooses to sell a vehicle under finance prior to the end of a loan term, where the vehicle is collateral for the loan, they will need to finalise the balance owed on the finance. Typically, borrowers will finalise the outstanding amount on the loan with the proceeds of the sale. When the loan is paid out, the lender releases any claim to vehicle.

The reference to ‘secured’ with secured commercial funding is the security or collateral provided by the borrower. The loan is considered to be ‘secured’ by the assets available for the lender to repossess if the borrower defaults on the loan.

Collateral requirements for secured funding are subject to individual assessment of the loan to value ratio by lenders. Lenders assess the value of the collateral offered in relation to the amount requested.

Secured loans for asset purchases include Hire Purchase, Lease, Chattel Mortgage and Rent-to-Own. Secured business loans are available for some non-asset purchases and purposes where backed by other assets owned by the business or its principals.

With the lender having the truck being funded as the guarantee for the loan, funding without a deposit may be approved. No deposit financing is typically available on new vehicles but is subject to meeting lender criteria with strong financials and good credit.

Asset acquisition finance are loans to fund the purchase of business assets such as motor vehicles, cars, trucks, commercial boats, plant, machinery and equipment. The types of asset acquisition loans are Lease, Rent-to-Own, Chattel Mortgage and Commercial Hire Purchase.

Secured funding uses goods as the collateral for the funds being borrowed. The collateral is a guarantee for the lender that have an asset they may repossess and sell to recoup funds owed if required. Unsecured funding does not require collateral.

Yes. All commercial enterprises that have an ABN and ID can be eligible to apply for commercial funding. Approval is subject to individual lender guidelines and meeting criteria.