Commercial Asset Financing with Local Finance Guru
There are several types of assets and equipment finance available that you can choose from. Here are the essential features of different types of finance available for buying commercial equipment:
In a chattel mortgage, the movable asset that you buy such as a vehicle or a machine, is considered collateral by the lender. The lender has the right to liquidate the asset if the borrower fails to make the monthly payment.
With this type of loan the asset provider buys the asset that is then leased out to the businesses. The business makes monthly payments for the “leased asset”, makes a “balloon payment” at the end of the lease period, and takes ownership of the asset.
Operating lease or equipment lease:
When a business needs the equipment or asset only for a fixed duration and not the entire life of the asset, it can take it on an operating lease. The ownership will remain with the asset provider.
Under the finance lease agreement, the asset or equipment provider purchases the asset outright. The asset is then “leased” to the business for a fixed duration. At the end of the lease, the provider sells the asset.
Unsecured or small business loan:
This is a short-term loan that the business may obtain to improve cash flow, buy an asset, or improve its finances. This is also sometimes called the “balance sheet loan”. It is usually a low-doc loan that is provided based on the accounts and bank data of the business.
This helps a business to free up capital or equity locked in an asset that they own. Simply put, the business can take a loan using the value of an asset that they own as collateral. However, if they fail to make repayments, the asset can be repossessed by the lender.
Asset Financing Specialists in Sydney
These are the several benefits of commercial asset finance such as:
● Reduces initial costs
● A new line of credit
● Improves cash flow
● Frees up capital
● Helps to avoid asset depreciation
● Easier to obtain than bank loans
● Cost of equipment spread out over several months
● Reduction in maintenance costs
Benefits of Commercial Asset Finance
As the leading loan broker in Sydney, Local Finance Guru offers:
● Full range of equipment and commercial asset finance
● Tie up with a large number of banks and other lenders
● Lowest interest rates
● Knowledgeable brokers
● Easy repayment options
● Low doc finance availability
● Assistance for borrowers with bad credit history
● Quick processing
● Single point of contact
If an asset finance loan is something you are serious about, call us right away to speak to our commercial asset finance specialist. Call us on 0430 411 466 or mail us at email@example.com. The time is now!