What Is Asset Finance?
Asset finance is becoming a popular loan option for business owners as they are often faster and easier to obtain than a typical bank loan. Asset finance allows businesses to purchase assets like machinery, plant, equipment and vehicles without the upfront cash.
At Your Advisor Group on the Gold Coast, we’ll sit down with you to understand your circumstances and goals before comparing lenders and providing you with your options. There’s a range of types available and our
finance brokers will ensure you understand the pros and cons of each and your obligations in terms of managing repayments.
Asset Finance Types & Features
Hire Purchase
Hire purchase enables businesses to acquire assets by spreading the cost over time, eventually owning the asset after all payments are made.
Chattel Mortgage
Commonly used by business owners and operators for car and equipment finance. With a chattel mortgage, the asset is owned by you from the outset and the loan agreement is secured by the asset.
Novated Lease
A novated lease is one of the easiest and most cost-effective ways to buy and own a car. This way, the financier owns the asset, while you and your employer sign a novation agreement to share the responsibilities of the loan.
Finance Lease
A finance lease allows businesses to use an asset while paying a rental fee, offering usage flexibility without the responsibility of ownership.
The Asset Finance Process
When you work with Your Advisor Group, our goal is to find you the most suitable asset finance solution that meets your unique needs. Our process for securing asset finance is as follows:
Say Hello
Get in touch to discuss your current financial situation and goals.
Shortlist
We'll research an extensive range of banks and lenders to provide you with a shortlist of suitable options.
Pre-Approval
Once you've chosen a lender, we'll get you pre-approved.
Shopping
Shop for the equipment you need to expand your business.
Paperwork
Once you know what you want, we'll take care of the paperwork to secure finance from your lender.
All Done
The agreement is finalised, the asset purchased and you can begin to enjoy using it, without a large lump sum outlay.
Other Things to Consider: Balloon Payments
What
You choose to pay a larger sum of the loan value at the end of the loan term. The sum you pay is usually based on a fixed percentage of the total loan value.
Why
Reduce your repayments when you first start paying off the loan.
Consider how this will affect the amount of interest you pay over the life of the loan and the total amount that is left to pay at the end of your monthly repayment term. The remaining sum will need to be paid in full in one lump sum.
How Do I Know If This Is Right For Me
We can help you understand whether this approach suits your needs and run through the considerations and benefits in more detail.
Book a free 15-minute discovery call today!
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Your Advisor Group Pty Ltd ACN 631535236 is authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192
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The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
1There may be occasions where you may be charged a fee by your broker.
2Your broker is able to assess each lender's approval times and identify those that can provide approval quickly, however this is subject to change and can vary significantly based on how complex is your loan application and how quickly you’re able to provide the information we need.
3Not all lenders are available to all brokers. The exact details of the lenders your broker has access to is disclosed within the Credit Guide your broker gives to you when providing credit assistance or is available upon request.
