Asset Finance in Melbourne
Asset finance is a type of lending that allows businesses to acquire new assets for their operations, without having to make large upfront payments. The assets that can be financed range from equipment and machinery to vehicles and real estate. Asset finance is a key tool that businesses can use to grow and develop, and it is particularly important for businesses that require a lot of capital investment to operate. In this article, we will discuss asset finance in Melbourne, including its benefits, types of financing available, and some of the key players in the market.
It has a number of benefits for businesses, including:
- Cash flow management: With asset finance, businesses can acquire the assets they need without having to make a large upfront payment. This means that they can manage their cash flow more effectively and use their available funds for other purposes.
- Flexibility: Asset finance can be tailored to the needs of the business. This means that businesses can choose the type of finance that best suits their needs, such as hire purchase or leasing.
- Tax benefits: Depending on the type of finance used, businesses may be able to claim tax deductions for the interest and depreciation of the assets.
Types of Asset Finance
There are several types available to businesses in Melbourne, including:
- Hire Purchase: Hire purchase is a type of financing where the business pays a deposit and then makes regular payments to the lender until the full cost of the asset is paid off. The business then takes ownership of the asset.
- Leasing: In a lease agreement, the lender owns the asset and the business pays a regular fee to use it. Leasing is often used for assets that have a high turnover rate, such as vehicles.
- Chattel Mortgage: A chattel mortgage is a type of financing where the lender provides a loan for the purchase of an asset and takes a mortgage over the asset as security. Once the loan is paid off, the mortgage is removed and the business takes ownership of the asset.
- Operating Lease: An operating lease is a type of lease where the business pays a fee to use the asset for a set period of time. At the end of the lease, the asset is returned to the lender.