A: A Chattel Mortgage is the most common loan type for commercial lending. As the borrower, you can take ownership of the vehicle at the time of purchase rather than at the end. This means you can use the asset as a taxable offset (in most cases), claim the GST on the purchase price and claim the depreciation of the asset and interest charges on the loan. With 1-7 year loan terms and residuals available it is a versatile option for most business types. Speak to one of our Commercial Finance Specialists to discuss which finance options would suit you and your business.

A: Low Doc (also known as No Doc, Self Dec, Lite Doc) requires little to no proof of the borrower’s financial position.

Assessment for a low doc loan generally relies on the assessment of the age of your ABN & GST registration, you as the borrower, and the asset being purchased. This is a great option for businesses when they have little or no ‘provable’ servicing (ie capability to prove capacity to repay the loan). Speak to one of our Commercial Finance Specialist to discuss which finance options would suit you and your business.

A Lease is very similar to a Hire Purchase as it uses the same ownership principles where the vehicle is owned by the lender for the term of the loan rather than you (the borrower). The

primary difference between ‘Hiring’ & ‘Leasing’ in that hiring allows you to decide if to include a residual or not (otherwise known as a balloon payment). A Lease however has a regulated residual value calculated off the term of the loan. Speak to one of our Commercial Finance Specialist to discuss which finance options would suit you and your business.

A residual value or balloon payment is where an amount of the total value of the car is deferred or postponed to the end of the contract.

For example, if you buy a car for $300 000 with a residual of 30% ($90 000), that $90 000, plus interest, is only due at the end of the contract or loan term.