Asset Finance and Comparing Lenders

Asset Finance / Chattel Mortgages / Equipment Finance - They are essentially the same thing with a different name. There are other funding options for Business and Personal Car and Equipment Finance (Novated Leases, Personal Loans, Car Loans) so how does a consumer or business figure out the right funding?

The answer here can be very varied. Here at The Broker Society, we like to ensure our clients are getting the right advice. As a Mortgage and Finance broking company, we are unable to provide Financial Planning or Taxation advice, so this is where your group of trusted advisors come in.

Ensuring that you have spoken to your accountant first, before deciding the right type of funding is important so that we can go ahead and quote for the right products for you once you have gathered the right taxation advice for your personal circumstances.

When comparing Asset and Equipment Finance the interest rate isn’t always the best starting point. (Although this is important) the most suitable way to compare Asset Lenders is by the monthly repayment for your asset. Ensuring all your quotes are quoted the same way.

Things to consider when taking Asset Funding are:

• The Age of the Asset (New, Demo or Second Hand)

• The Purchase Type (Dealer or Private Sale)

• The length of your Loan Term (12-60 months for Commmercial generally)

• Advance or Arrears Payments Term

• Funding Fees or paying them directly yourself

• Monthly Service Fees

• Balloon Arrangements

Once you have decided the best structure for you and Loan Options, your lender can then provide quotes for you. Lenders vary across fees, charges and interest so working out the correct way to compare can be hard.

The advice provided in this article is general in nature and does not take into consideration your personal circumstances.