Popular Types Of Business Finance Adelaide Applicants Apply For.
Business finance Adelaide companies and businesses apply for must be predominantly for ‘business use’.
Leasing is now only used by companies that want to keep the goods off of their balance sheet, with asset purchase finance (hire purchase) and chattel mortgage finance agreements used most often; allowing for depreciation and GST to be claimed back.
With all business finance, we suggest speaking to your tax professional who can guide you based on your unique circumstances.
The most popular examples of business finance Adelaide applicants apply for are listed below.
Business Car Finance
Business car finance is applied for by people looking at purchasing a car; predominantly for business purposes. Business car finance can be structured as a lease, novated lease, hire purchase or chattel mortgage. Normally the full amount is financed, with a ‘residual’ amount at the end of the financed period.
Equipment finance Adelaide companies apply for is often leased in the case of large financed amounts, with the company not owning the equipment; just making rental payments. Small businesses often prefer hire purchase finance.
Commercial Vehicle Finance
Commercial vehicle finance Adelaide companies apply for is generally to keep their fleet updated. Businesses with few vans or light commercial trucks tend to keep them longer and often refinance the residual at the end of the term.
Agricultural Machinery Finance
Agricultural machinery Adelaide farmers apply for is primarily obtained with asset purchase finance (hire purchase). Farmers will often keep hold of the equipment until it can no longer be fixed; long after the loan has been paid off.
Technology finance Adelaide businesses apply for is a specialised field due to the fast depreciation of technological items. There are several ways to structure technology finance; asset purchase is primarily chosen to claim the rapid depreciation of the goods, which are often replaced at the end of the term.
Medical Equipment Finance
Medical equipment finance is tailored to companies that buy expensive medical equipment such as x-ray machines used by dentists. Asset purchase of medical equipment is common with many companies upgrading after 5 years.
Aircraft finance Adelaide companies apply for has been designed for commercial flight companies and flight schools, although there is a growing number of national companies that purchase planes and helicopters.
Marine finance Adelaide companies apply for is commonly for boats but can be used for other marine craft such as jet skis. Boats are often financed by way of an asset purchase agreement, with a residual; which is often refinanced.
Specialised Business Loans
There are two popular types of business loans; both often to help small businesses that have limited financial history.
Low Doc Loans
Low doc loans Adelaide small business people apply for has been designed to reduce the need to show a number of tax returns as proof of income, with a statutory declaration signed instead.
Good credit history will help with the approval process, especially if there is a history of paying loans off well in the past.
Small Business Loans
Small business loans Adelaide businesses can apply for consider the nature of the business. Vans, small pieces of equipment that are used by tradesmen are examples. Licensed tradesmen that are trying to expand their business and grow may need more vehicles and more pieces of trade related equipment.