car loan business opportunity

car loan business opportunity

How likely is it that I can get a loan to buy a car loan servicing franchise business opportunity?

It would most likely be fairly straightforward to get a loan to buy your car servicing franchise business opportunity. As franchise businesses in general have proven to perform so well banks and other lending institutions are reputed to view applications for business loans as capital for buying franchise business very favourably indeed.

Obviously, the individual bank or alternative lender will be more likely to put up capital for a prospective franchisee if the opportunity is one with a reputable and well-established company, one with a good track record, whether the capital investment be high or low. And the financial reputation of the borrower would naturally be taken into consideration too.

Low cost loan franchises are available from business, a world leader in Internet and Technology business opportunity solutions. Capital investment with this leading company comes in at under $50,000. Many successful business franchisees elected to join this number 1 company because they had the support of their bank or lender regarding investment.

Companies, partnerships & sole traders looking for business car finance or a business car loan have a range of options available to them. The most appropriate type of finance for each business’ needs will depend on business opportunity structure, cash-flow requirements, GST registration status and tax considerations.

Stratton Finance specialise in car finance for companies, partnerships, sole traders and other businesses – we have the right solution for your needs. Business car finance options:

Finance Lease (Car Lease) A Finance Lease (Car Lease) enables a business to have the use of a car or commercial vehicle and the benefits of ownership, while the financier retains actual ownership of the vehicle.

Commercial Hire Purchase (CHP) Commercial Hire Purchase is a commercial finance product where a business opportunity (or an individual with a high proportion of business use) “hires” a car from the financier for a fixed monthly repayment over a term, and has the option to purchase the car at the end of the term.

Under a Commercial Hire Purchase (CHP) arrangement the financier agrees to purchase the car on behalf of the customer, and then hire it back to them over a set period of time.

The customer has the use of the vehicle for the term of the contract but is not the owner of the vehicle. At the end of the contract term when the total price of the vehicle (minus any residual) and the interest charges have been paid in full, the customer takes ownership of the car.

Benefits of a Commercial Hire Purchase (CHP)

* Flexible contract terms ranging from 24 to 60 months (two to five years)
* Residual value (baloon or final instalment) may be placed on contract * Fixed loan interest rate
* Monthly repayments are fixed
* Costs are known in advance
* Deposit (either cash or trade-in) may be used
* A tax deduction is available when the vehicle is used for car loan business opportunity purposes
* GST is not charged on the monthly rental or residual payment
* Customers registered for GST can claim the GST in the vehicle price * The finance is secured against the vehicle, allowing lower interest rates Chattel Mortgage A Chattel Mortgage is a commercial finance option under which a financier loans money to a business to purchase a car or commercial vehicle (chattel), and then secures the loan with a mortgage over the vehicle.

Under a Chattel Mortgage the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase.

The financier then takes a “mortgage” over the vehicle as security for the car loan business opportunity, by registering a Fixed and Floating Charge with ASIC. Once the contract is completed, the charge is removed giving the customer clear title to the vehicle.

Benefits of a Chattel Mortgage

* Flexible contract terms ranging from 24 to 60 months (two to five years) * A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget
* Fixed interest rates
* Monthly repayments are fixed
* Costs are known in advance
* Deposit (either cash or trade-in) may be used
* A tax deduction is available when the vehicle is used for business purposes
* A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)
* No GST is charged on the monthly repayment or the contract balloon amount
* The finance is secured against the vehicle, allowing lower interest rates Nova ted Lease While not strictly a business car finance option, Novated Leasing is a great way for businesses to offer an added incentive to their staff at no extra cost to the employer.

A Nova ted Lease is a three way agreement between an employer, employee and finance company whereby the employee enters into a Car Lease (Finance Lease) opportunity with the financier and the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer pays the monthly lease rentals on behalf of the employee, and provides the vehicle for the employee to use as part of their salary packaging arrangement.

If employment ceases for any reason, or the lease agreement is finalised, the Novation ceases and the obligations assumed by the employer revert back to the employee. Benefits of a Novated Lease