Asset and equipment loans
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Asset finance is primarily tailored towards self-employed clients, small business owners, and contractors. In saying that, it’s still possible to get personal asset finance, and one of the most popular options is for buying cars.
Compared to traditional forms of finance, the benefits of asset finance can include avoiding depreciation, freeing up capital, improving cash flow and reducing upfront costs.
The asset finance process
It’s simple. We’ll find you the right asset finance solution that works in your best interest.
- Say hello
Get in touch to discuss your current financial situation and goals, in person or online. - The shortlist
We’ll research our panel of banks and lenders to create a shortlist of asset finance solutions that suit you. - Pre-approval
Once you’ve chosen a lender, we'll get you pre-approved. - You go shopping
Time for you to decide on the equipment you need to run or expand your business. - Secure the finance
We’ll complete all of the paper to work to secure finance from your lender. - You're done!
The agreement is finalised, the asset purchased and you can begin to enjoy using it, without a large lump sum outlay.
Loan types and features
There are a number of loan types available to you; variable rates, fixed rates, guarantor loans and more, scroll through some of the options to get a better understanding of what the differences are. We’re here to answer your questions when you’re ready.
Variable rate loan
As the name suggests, the interest rate can change over the life of the loan. This gives you flexibility, but can also leave you open to rate rises. These loans offer more flexible features like unlimited additional repayments, redraw, and offset accounts.
Fixed rate loan
Basically, this is the opposite of a variable rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises.
Split loan
You’re able to fix part of your loan, while leaving the rest variable.
Packaged loan
Professional packages offer discounts on standard variable and fixed rates, the waiving of fees, and in some cases, great deals on other products from the same lender. A packaged loan usually comes with one annual fee for the bundled products.
Introductory rate loan
Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.
Interest only loans
As the name suggests, you only pay the interest on the principal balance for a set term, with the principal balance unchanged.
Guarantor Home Loans
A guarantor uses the equity they’ve built up in an existing property to help you purchase your property sooner. Guarantors could be your parents, parent-in-law or a step parent or grandparents.
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. Get in touch.
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FAQs about asset finance.
We’ve got your questions covered.
How long is an asset finance term?
Asset finance is usually set over a period of one year through to seven years.
What is a residual amount?
A residual amount (sometimes referred to as a balloon payment) is a one-off payment at the end of the loan term. This is factored into the total cost of your loan at the beginning of the term.
