FINANCE PRODUCTS
 

Chattel mortgages are a popular financing option for business vehicles, Trucks, Trailers, and Machinery. With this arrangement, the lender provides funds to purchase the asset and places a 'mortgage' over it as security for the finance. Throughout the loan term, you retain asset ownership, unlike a lease, where ownership typically remains with the lessor. After the loan, the security is released, giving you full asset ownership. Chattel mortgages are commonly utilised by sole traders, companies, trusts and partnerships seeking flexible and efficient finance solutions for their business needs. Chattel mortgages are a popular financing option for business vehicles, trucks, trailers, and machinery. In this arrangement, the lender provides funds to purchase the asset and places a 'mortgage' over it as security for the finance. Throughout the loan term, you retain asset ownership, unlike a lease, where ownership typically remains with the lessor. After the loan, the security is released, giving you full asset ownership. Chattel mortgages are commonly utilised by sole traders, companies, trusts, and partnerships seeking flexible and efficient finance solutions for their business needs.

Finance Lease

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A finance lease lets you rent equipment, primarily trucks and commercial work vehicles. In this arrangement, the bank purchases the asset on your behalf, and you make monthly rental repayments until the end of the lease term. After the term, you can pay out the residual and take ownership, sell the asset, or refinance the residual to continue leasing.

Operating Lease

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An operating lease involves the bank purchasing the equipment for you, which you then rent from the bank through fixed monthly repayments over the agreed term. Unlike a finance lease, you simply return the equipment to the bank at the end of an operating lease.

Secured Business Loans

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Secured business loans involve the lender taking collateral, such as a business asset or property, to secure the finance. This added security lowers the lender's risk, resulting in greater flexibility and lower interest rates and fees. These loans are structured to be supported by the business's cash flow, providing businesses with access to the funds they need while offering favourable terms and rates.

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Unsecured Business Loans

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Unsecured business loans do not require collateral to secure the finance. While this offers businesses greater flexibility, the absence of collateral means higher interest rates and shorter loan terms. Due to the increased risk to the lender, unsecured loans are often accompanied by stricter eligibility criteria. Similar to secured loans, unsecured business loans are designed to be supported by the business's cash flow, providing quick access to funding for various business needs.

A business overdraft is a revolving line of credit linked to your business transaction account, allowing you to draw on funds up to an approved limit whenever needed. This flexible form of credit does not require formal repayments and is designed to help manage business cash flow. You only pay interest on the amount you withdraw, making it a cost-effective solution for covering expenses such as employee wages, supplier invoices, stock purchases, or unexpected costs. By providing quick access to funds, a business overdraft can enhance your ability to make confident business decisions without the need for a separate line-of-credit facility, as it is conveniently attached to your business account.

Invoice Finance, also known as debtor finance and accounts receivable financing, is a business funding solution that enables companies to access a line of credit by using their outstanding customer invoices as collateral. This type of financing is particularly beneficial for businesses needing to increase cash flow to meet short-term liquidity needs. By utilizing funds owed to them through outstanding invoices, businesses can quickly raise capital to pay suppliers, meet payroll, cover overheads, and reinvest in long-term growth. Invoice Finance helps bridge cash flow gaps caused by extended payment terms and seasonal sales cycles, providing predictable and reliable working capital. Despite its benefits, invoice finance needs to be utilized more in Australia, with volumes totalling only 3.9% of GDP compared to 19% in the UK, even though Australian businesses experience some of the highest rates of late payments globally. Types of Invoice Finance include Invoice Factoring, where the accounts receivable ledger is sold and up to 95% of the outstanding invoice value is provided as an advance, and Invoice Discounting, where businesses retain control over their sales ledger while receiving funding against unpaid invoices. By understanding these options, businesses can choose the most suitable solution to enhance their cash flow and support their growth.