How can a vehicle business loan help your company grow?

• Vehicle Loan, also known as asset finance, offers competitive interest rates and flexible repayment terms.
• It provides the necessary funds to expand your fleet and boost your business operations.
• Use our car loan repayment calculator to compare savings.

What are the benefits of a vehicle business loan?

• Improved Cash Flow: Access to funds without tying up large amounts of capital upfront.
• Tax Benefits: Potential deductions on vehicle expenses for business use.
• Competitive Interest Rates: Lower rates compared to unsecured loans.
• Fast Approval Times: Quick access to funds to meet business needs promptly.

Which business car finance solution is right for you?

• Finance lease: The lender purchases the motor vehicle and leases it to you for an agreed term.
• Commercial hire purchase: Your business immediately owns the vehicle once the final payment is made.
• Novated lease: Employees lease a vehicle of their choice while you make the lease payments.
• Chattel mortgage: The equipment is owned by the business but used as the primary security against a mortgage over the vehicle.
• Sale and hireback / sale and leaseback: Available with vehicles purchased in the last three months.

What are the pros and cons of a chattel mortgage?

• Pros:
  • Immediate Ownership: Gain immediate ownership of the asset.
  • Flexible Financing: Finance movable assets like vehicles and equipment.
  • Tax Benefits: Interest payments and depreciation can be claimed as tax deductions.
  • Predictable Repayments: Fixed interest rates and repayment terms.
• Cons:
  • Asset Depreciation: The value of the asset may depreciate faster than the loan is repaid.
  • Collateral Risk: The lender can seize the asset if you default on the loan.
  • Interest Rates: Can be higher compared to other types of financing.
  • Limited Use: Only applicable for movable assets.

What features are available for vehicle business loans?

• 5-7 year loan terms.
• Negative equity rollover when you trade in your vehicle.
• Fixed rate principal and interest (P&I) payments.
• Business Line of Credit, overdraft facilities, and offset accounts.
• Balloon payments available to reduce your repayments.

How much can I borrow?

• Up to 100% of the vehicle value and up to 50% for business cash flow purposes.
• Borrowing limits subject to a valuation of the vehicle.
• Standard cars, motorcycles, vans, and utes are preferred.
• Lenders will consider new vehicles or collectibles.
• Financials must show evidence of a profitable business.
• At least 3-5 years business experience required.
• Some lenders will accept minor defaults but black marks must be clear from your credit file.
• A director’s guarantee and a fixed and floating charge over the vehicle will be used as security.

How can I improve my chances at approval?

• Business experience: At least 3-5 years in the same industry.
• Evidence of profitability: Last two years business financials.
• Business plan and SWOT analysis: Detailed business plan and expected return on investment.

Is the commercial vehicle eligible for lender approval?

• Brand new vehicles are acceptable to all lenders.
• Demo or demonstrator vehicles can also be considered.
• Provide a sales contract from the dealer or wholesaler.

How are vehicles valued?

• Consideration of the vehicle’s condition, kilometres on the odometer, accessories, supply and demand, and any current or historical damage.

Can I finance the purchase of a ride-sharing vehicle?

• Yes, if the car is used for business purposes 50% or more of the time.
• Registered ABN and at least 1-2 years of operation required.
• Hire purchase or chattel mortgage finance options may be acceptable.

Can I claim motor vehicle depreciation and expenses?

• Yes, expenses such as fuel, repairs, interest, lease payments, insurance, registration, and depreciation can be claimed.

Can I claim negative equity in a trade-in?

• Yes, some lenders will allow you to roll over negative equity into your new business car loan when you refinance.