FAQ

Essentially yes. Loans on equipment are available to all sized businesses – owner-operators, sole traders, partnerships, family enterprises, and SMEs. The interest rates achieved on different loan products are not differentiated based on the size of the business or the corporate structure. All sized businesses including the smallest operators can be offered the lowest possible interest rate. For small businesses perhaps those just starting out, if you do not have all the documents that the bank requests to meet their loan guidelines, you can proceed to source a quote for a No Docs or Low Docs Loan. Even this type of loan can attract the same interest rates but with stricter loan criteria and possibly additional conditions.

On all secured loans, the interest rate is fixed for the full loan term. This means that the interest rate achieved when arranging your loan will remain in place over the years of your finance contract. So your repayments will stay at the same amount as when the loan was established. This provides you with assurance and the ability to plan cash flow and other investments based on fixed loan elements. The interest rate is fixed, the repayments are fixed and the loan term is fixed.

The interest rate depends on a number of things. The finance product you choose, chattel mortgage, leasing, CHP or rent to own. The type of asset you wish to purchase that is being used as security. If it is a new or a used asset, and depending on the age of the asset if used. The amount financed, normally the more you borrow can attract cheaper rates. The term of the loan can attract different interest rates.

Lenders are different with all types of equipment – generally wheeled goods (trucks, vehicles for example) and yellow goods (excavators for example) attracted better interest rates as the security or chattel it is secured against has a better resale value. Equipment like Gym, Beauty or Fit outs will attract higher interest rates as the re-sale value or security or chattel value security is deemed very low. Small business loans or unsecured can be higher interest rates because there is no security.