Asset Finance Guides
Understand asset finance before you borrow.
Asset finance covers a wide range of loan types used to purchase vehicles, equipment and machinery for personal or business use. The right structure depends on the asset, its use and your financial position.
Chattel mortgage vs finance lease
A chattel mortgage means you own the asset from the start while the lender holds it as security, common for business purchases. A finance lease means the lender owns the asset and you lease it, which can suit businesses wanting to preserve cash flow.
Novated leases explained
A novated lease is a three-way arrangement between an employee, employer and financier, often used for vehicles, where repayments can be drawn from pre-tax salary in some circumstances.
New vs used asset finance
Lenders often price and assess new and used asset finance differently, with used assets sometimes attracting different terms depending on age, condition and depreciation.
Balloon payments
Some asset finance products include a balloon or residual payment at the end of the term, which lowers regular repayments but leaves a lump sum owing when the loan matures.
Business vs personal asset finance
Business asset finance is generally assessed against business financials and purpose, while personal asset finance, such as a car loan, is assessed against personal income and expenses.
This information is general in nature and does not take into account your personal circumstances. It is not financial advice or credit advice. Consider seeking professional advice before making a decision.