End of financial year (EOFY) is just around the corner, which means time is running out to purchase a vehicle or equipment for your business before June 30. If you are wanting to purchase an asset or vehicle for your business, we have access to wide variety of lenders who could offer multiple options to finance the items you need.
There are several different ways to finance assets for a business. Here are just a few options to give you an idea of how we can help.
The great thing about leasing is that you can access the latest equipment and vehicles with no capital outlay. The lender retains ownership of the asset and you lease it back from them at a fixed monthly payment. Once the lease is up, you can choose to pay a ‘residual payment’ and buy the asset, then potentially trade it in and upgrade to a newer version. Another option is to refinance the residual and continue leasing.
In addition to finance leases, there are also operating lease agreements. This is when you don’t take on the obligation to pay the residual value at the end. The asset is simply handed back to the lender.
Again, a hire purchase allows you to obtain the latest equipment and vehicles for your business, whilst preserving your cash flow. With this finance option, the lender purchases the equipment or vehicles you require, then hires it to your business for a specific period. It’s like a finance lease, but when the final payment is paid, your business immediately owns the asset.
A chattel mortgage is another type of finance option that works well for businesses. The financier secures the loan using the “chattel”, or the vehicle or equipment you purchase. You take ownership of the asset, and the mortgage is registered with the Australian Securities & Investments Commission (ASIC). Once the loan is paid off, the mortgage is removed, and the vehicle or equipment is officially yours.
Loans and other finance options
In addition to these popular ways to finance vehicles, machinery and equipment for your business, we can also offer a wide variety of business loans – both secured and unsecured. These can be used for anything from equipment purchases to inventory control and cash flow management.
Whether your business finance needs are straightforward or more complex, we have access to a wide variety of lenders with competitive financing options so we can help you find the right solution. With EOFY fast approaching, contact us today and we’ll get the ball rolling on your finance in plenty of time to make your purchases before June 30.
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