What We Finance

Business Car Finance

• Chattel Mortgage

  A Chattel Mortgage is a commercial lending product offered to ABN registered businesses or sole traders. Under a Chattel Mortgage, the financier lends funds to the customer customer to purchase and take ownership the vehicle (chattel). However, the financier takes a security over the title of that asset until the loan is completed. Once paid the financier releases the title over the asset over to the customer.

  • Flexible contract terms 1-5 years normally
  • Fixed interest rates
  • Finance available from $5,000
  • No Deposit require (cash or trade-in can be used though)
  • Balloon payment can be applied reducing monthly repayments
  • Customers registered for GST can claim the full GST amount on the asset when they lodge their next Business Activity Statement
  • Benefit of a chattel is depreciation and interest can be claimed as a Tax Deduction
• Personal Loan

  A personal loan, also commonly known as an Unsecured Loan is when the financier lends the client money for the purchase of a vehicle, but does not take security of the vehicle. This is why it’s called an Unsecured Loan. The financier expects the client to repay them the full amount of the loan including the interest over a fixed term. Because the there is no security like an asset on the loan the interest rates are normally higher on a personal loan when compared to a car loan.

  • Interest rates can be fixed or variable
  • Finance available from $6,000
  • Flexible Terms 1-8 years
  • Loan is not secured over an asset so additional money can be used elsewhere
  • Have the ability of a Tax deduction if used for business purposes
• Financial Lease

  A Finance Lease is often used to acquire a motor vehicle for the major part of its useful life. Generally at the end of the term the client will pay the remaining residual value of the asset to take full ownership of the vehicle. The flexibility is there for the client to take ownership, trade or refinance the vehicle at the end of the term.

  • Flexible contract terms 1-7 years
  • Fixed interest rates on the term and monthly lease payments
  • Finance is available from $5,000
  • Deposit (can be either cash or trade-in of existing vehicle)
  • The asset will not be on a businesses balance sheet as an asset or liability
  • Payments can be claimed as Tax Deduction
  • The GST cost enclosed in vehicle is actually claimed back by financier, only the price exclusive of the GST amount will be financed
  • The Residual Value options are based on ATO guidelines.
    Website: https://law.ato.gov.au/atolaw/view.htm?docid=aid/aid20021004/00001
• Novated Lease

  This is a three-way agreement between an employer, the customer and the financier. A Novated lease allows a business/employer to lease a motor vehicle on behalf of an employee. The responsibility of the lease and ownership of the car is with the employee. The benefit of a novated lease is the payments are made from the employee’s pre-tax income. Every part of the running costs of the vehicle are included in the lease repayments when structured as a Fully Maintained Novated Lease; tyres, rego, servicing fuel, etc. Make sure your employer offers assistance before considering a Novated Lease. A standard Novated Lease does not include any running costs.

  • Great tax savings by diverting pre-tax dollars
  • Income level or cost of car not relevant for application
  • Bundle all running costs for better budgeting
  • Age of the vehicle can be up to 12 years old
• More Information

  What if I’m just Starting Up?

  We really enjoy getting clients up and running in their first business vehicle. We’ve done the research on an array of lenders to help support new businesses and supply finance to our clients at the right competitive rates. The key to success in securing finance in a start up is evidence of a work-source and that the information is collected and confirmed. This includes items such as work letters, contracts, agreements etc. We can help support our customers with a Business Plan and cash flow projections to be provided so the lender gets even more comfort.

  What does a Low Doc Loan Application involve?

  Low doc applications make the process for you quick and simple by choosing the right lender and supplying the right minimal amount of information to them. The business needs to be registered for a minimum of 12 months and also registered for GST. Another key requirement is the client must be asset backed with property or put in a minimum 20% deposit towards the sale price of the asset. It is essential the client have a clean credit file to be eligible for a low doc. Asset age has a limit of 12 years at contract maturity.

  What does a Full Doc Loan Application involve?

  Normally a business must be registered for a minimum of 12 months and be registered for GST. You the client must provide full financials that also includes most recent Company Tax Return, YTD company financials, Notice of Assessment and complete a full personal application. The Yakka team can then analyse the information and submit to the right lender offering the best rates.