If you’re a new business looking for a finance boost to kickstart your business, then talk to Loantec about our business loan financing options today! Whether it’s ABN car financing or a loan to cover cash flow, we can secure the best deal for you, at the best rate possible.
Here at Loantec, our team has more than 40 years of experience in business finance, lending and problem-solving. With access to 40+ lenders across Australia, you can count on our Finance Technicians to get the right loan for your business. Find out how we can help you get the financing you need by filling in our simple pre-qualification for today.
Car & Equipment Finance
Generally the most common kind of business loan, car and equipment finance is a key product for many companies across Australia. From delivery vans to warehouse forklifts, there’s an almost endless number of vehicles and types of equipment you can finance.
Getting the right kind of business loan will come down to your business needs and the kind of equipment or vehicle you’re looking to finance. At Loantec, we have experience in financing a complete range of vehicles and equipment. Meaning we can confidently find you the best deal possible.
With equipment financing, there are 3 standard business loan options, rent to buy, chattel mortgages and commercial hire-purchase. Each kind of loan has their benefits, and it will come down to your business needs to determine which is right for you.
Rent to Buy
Rent to buy business loans are exactly what they sound like, you rent the equipment until the end of the contract. Then you have the option to buy it outright or not. These are great options if you’re looking for flexibility or don’t have the capital to buy the equipment you need outright.
Popular for things like forklifts and wheel loaders, rent to buy contracts are generally 1-5 years with the option to purchase at the end. Depending on who you go through, some companies will also offer rebates at the end to lower the overall cost. Or, if you decide you don’t want to buy the equipment at the end of the lease, simply hand the item back to the owner at the end of the contract.
Many companies will also offer seasonal and irregular payment schedule options that will make it easier to meet repayments if a certain time of year is quiet for your company.
The downside of rent to buy business loans is that they can be more expensive than other options. In some cases it may be better to look at lay-by or commercial hire-purchase financing to get your equipment.
Commercial Hire-Purchase
Commercial hire-purchase business loans are similar to rent to buy, except you commit to owning the equipment or machine at the end of the contract. This means, unlike rent to buy, you won’t have the option to not ‘purchase’ it.
Of course, there are benefits to this. Because you have locked in that you will be owning it, the rates and repayments can usually be negotiated more and are generally lower. Of course, you can make them even lower by reducing the regular repayments and having a larger balloon payment at the end.
The major downside for commercial hire-purchase loans is that you are not considered the owner of the product until the end of the contract. This means you will have limited tax benefits compared to if you were the owner. Of course, there are still benefits to this, as there’s no GST charged on the monthly rental. Just the fees and interest.
This all combines to make commercial hire-purchase business loans a fantastic option when you know you are going to need the equipment long-term. But don’t have the funds to purchase the equipment outright.
Interested in getting commercial hire-purchase finance? Fill in our simple pre-qualification form and one of our Finance Technicians will be in touch to discuss your options.
Chattel Mortgage
A chattel mortgage is what many would consider the standard type of loan. And it’s probably the most common business loan on the market. Whether it’s for a car, a forklift, or some power tools, chattel mortgages provide a comprehensive solution to getting the right finance for your business.
When you buy vehicles or equipment with a chattel mortgage, you own the item outright. Your repayments are simply paying off the total loan amount. Many lenders will still offer the option to lower your repayment amounts by adding a balloon payment at the end. Of course, you can also make extra repayments to reduce the balloon payment as well!
SME Business Loan
Not every business is the same, which is why SME business loans are designed to cover a wide range of applications in both small and medium businesses. From funding to start your new venture and grow your business, to covering cash flow for a quiet season, there’s a great range of SME business loan options for you to choose from.
Our Finance Technicians here at Loantec will take the time to discuss your business needs with you. From there we’ll work out your factual finance options and find the best deal possible.
Fill out our pre-qualification form to find out how our SME business loans could help you today.
Get the Right Business Loan From Loantec
No matter what your finance needs are, our team here at Loantec can help! With more than 40 years of experience in finance, lending and problem solving, there’s no finance situation we haven’t seen before. Fill in our pre-qualification form or contact our Finance Technicians to discover how we can get you the right business loan today.