The different business loans available.
There are 3 main business loan types; Commercial Hire Purchase, Leasing; including car leasing and Chattel Mortgage or Goods Mortgage.
NFC can help you decide which business loan type will suit your needs the best.
Business loans for plant and equipment, business car loans and car leasing, what ever your business requires, NFC has the right business loan Adelaide lenders have for your small business or large company requirements.
Commercial Hire Purchase CHP
Commercial Hire Purchase, CHP assists you, the customer to acquire a motor vehicle where the title to the vehicle passes to the customer on payment for the goods when the agreement expires. The customer can make periodic payments over the term of the agreement ( fully amortised ), or with a balloon payment, ( partly amortised ). The customer is able to claim both the interest content of the repayments and the depreciation on the vehicle as a tax deduction where it is being used to generate assessable income.
Leasing: Car Leasing
Car leasing finance provides the customer with the use of the motor vehicle for an agreed period. There is no right to purchase the vehicle, although the customer may approach the financier at the end of the term, and the financier may agree to sell the vehicle to the customer. The customer ( Lessee ) makes a series of rental payments that can be structured to suit the cash flow of their business. The rental repayments can be tax deductible ( up to 100% ) provided the vehicle is used to generate assessable income.
Read more about a car lease Adelaide has through National Finance Choice.
A chattel mortgage is designed to optimise cash flow while minimising the impact of the GST. The vehicle / equipment is available for immediate use in the business with no capital outlay. It is utilised for the purchase of assets used to generate income in their business, generally with a minimum finance amount of $5,000. The customer acquires immediate ownership of the asset. Depreciation and interest are usually tax-deductible. No GST payable on individual repayments. The customer can claim a direct input tax credit ( ITC ) on the purchase price of the asset. Goods are used as security. Fixed rates and repayments assist with budgeting. The customer can spread the repayments over the useful life of the acquisition as it generates income.
For business loans and business car finance needs there is only one name to remember – National Finance Choice.