FAQs

The balloon is an optional component of Commercial Hire Purchase and Chattel Mortgage. It is the percentage of the amount borrowed that is due to be paid as a lump sum after finalising the last repayments.

Typically, lenders will accept the machinery being purchased as the sole security against the funding. This is subject to lender approval and some applicants would be requested to provide additional collateral.

The choice of credit for vehicle purchases includes Chattel Mortgage, CHP and Leasing. The most suitable product is the one that suits the accounting method used by the operation and the approach taken by the operator to balance sheet and taxation.

Yes. All sized operators can claim the tax deductions relevant to credit product selected. Tax deductions vary with different credit products.

No. Asset acquisition funding is typically arranged with a fixed interest rate which remains the same over the full term of the credit.

Applicants for commercial credit are required to provide a range of documentation to show the financials for the operation. These can include tax returns, bank statements, trading figures, turnover and BAS returns. Where a new operation does not have these documents, they may source Low Doc and No Doc options through brokers and specialist lenders.

Yes. Registration to claim/charge GST is not needed to apply for commercial credit.

Yes. Leasing is one of a number of credit options for vehicle funding that sole traders may consider. The others are Chattel Mortgage and Commercial Hire Purchase.

Owner-drivers can select from Chattel Mortgage, Leasing, CHP and Rent-to-Own to fund new heavy vehicles.

No. All applications are assessed by lenders individually. Smaller operators with good turnover, strong financials and cash flow can be offered competitive rates.

The full selection of commercial credit products are available to all sizes and types of commercial enterprises. These include Lease, Chattel Mortgage, CHP and Rent-to-Own for asset purchases and secured and unsecured products for other purposes.

Yes. Sole traders, freelancers, contractors, micro operators and other self-employed operators are eligible for commercial funding. The essential criteria is to have an ABN.