At Finance101, we know that selecting the right business financing option is critical to your success. Whether you’re looking to expand your operations, manage cash flow, or acquire essential assets, we’re here to help you navigate the different types of business loans available in Australia. Let’s explore some of the key options and their benefits, along with the key features of each.
Secured Business Loans
- A secured loan requires collateral, such as property or equipment, to back the loan, offering lenders more security.
- Typically comes with lower interest rates compared to unsecured loans due to the reduced risk for lenders, making it a cost-effective option for long-term investments.
Chattel Mortgages
- Your business owns the asset outright from the start, but the lender holds a legal interest until the loan is paid off.
- Allows you to claim GST on the purchase price and potentially benefit from tax deductions for interest and depreciation.
Commercial Hire Purchases (CHP)
- You hire the asset over a fixed period and can purchase it at the end of the contract with a balloon payment.
- A flexible option that enables you to use high-value assets without the need for a large upfront payment.
Novated Leases
- Commonly used for employee vehicles, where the business leases the asset and payments are made via salary sacrifice.
- Offers tax benefits for both the business and employees, without the business needing to own or manage the vehicle.
Cash Flow Funding
- Provides immediate access to cash by unlocking funds tied up in unpaid invoices or accounts receivable.
- A great solution for small to medium-sized businesses that need fast capital to cover operational costs or seize new opportunities.
No matter which financing option best suits your business, Finance101 is here to support you. Our team of Australian-based experts can help you find the right solution to meet your needs. Contact us today to discover how we can assist you in achieving long-term business success!
