Today, owning a business in Australia comes with various financial challenges. Paying for the building, inventories, and even salaries or wages can be quite challenging.
However, depending on the type of business, buying a business vehicle is another stress altogether. Well, luckily for you, there is a wide range of finance options for getting a business vehicle in Sydney.
Even more, it comes with flexible lease alternatives and tax benefits. If you’re wondering about getting fast business vehicle finance in Sydney, here are your options.
Major Finance Options
If you’re looking to get a business vehicle finance, there are five major options you can explore. They are:
1. Finance Lease
This is a popular option that allows you to possess commercial vehicles, although ownership remains with the lender. Usually, a lender buys the automobile on your stead and then leases the car back to your business.
In turn, you commit to paying a monthly sum for a period of the lease. Then, after the expiration of the agreed duration and the completion of the lease price, the lender transfers ownership to you.
2. Commercial Hire Purchase
This is quite similar to the finance lease option. Commercial hire purchase involves hiring a vehicle for a specified duration. Again, in return, you make a fixed repayment, usually monthly. Then, once you complete the refund, the hirer transfers ownership to you.
However, it is distinct from the finance lease in that there’s no lump sum to be paid at the expiry of the agreed duration. That is, you don’t have to settle the outstanding value of the lease to take full ownership.
3. Chattel Mortgage
This is a finance option where a business receives the purchase cost of the vehicle rather than the car itself. In this case, the lender provides the purchase price and allows the company to have full ownership.
Then, the lender utilises a mortgage agreement to secure the loan transaction. As always, you have to repay the money. And when the payment is complete, the lender ends the mortgage agreement.
4. Business Loan
This involves using a standard business funding option to finance the purchase. Precisely, it consists of getting a loan for the business then identifying a business vehicle as a viable option to invest the money acquired. As such, it will involve financing options like a line of credit or a term loan.
5. Car Loan
This just like the regular vehicle loan that individuals can obtain. Only that this time, businesses get them to purchase a vehicle. However, it doesn’t come with the tax advantages of other companies or business car finance options.
Financing a business vehicle purchase can be quite complicated and tricky. As such, you need to ask yourself questions about the purpose of the loan and what ownership structure you prefer. However, to effectively do this, you’ll need a finance professional to put you through.
So, in case you need to finance purchasing a business vehicle, you can contact Marketmasters and be sure to get premium professional help.