Our NBS Business Asset Loan Services
An asset loan is a loan to finance the purchase of any asset with a serial number or VIN. This includes items such as cars, coffee machines, treadmills or generators.
What Unique Perspective Does NBS Home Loans Bring To The Business Asset Loan Space?
- We have access to a range of asset loan products from over 70 funders
- We understand that asset loans are not ‘one size fits all’ and help match ABN/ACN holders to the right product for their needs
- We build strong relationships with our clients and take the time to understand how their business operates and what their goals are
- We do not maximise our income by increasing the interest or establishment fees on asset finance. We do not gouge or pad rates or fees.
The Facts About Asset Loans In Australia
What Kinds Of Asset Loans Are There?
Asset loans are also often called asset finance or equipment finance, depending on what is being funded and the loan structure. There are three (3) kinds of Asset Loans; Chattel Mortgages, Novated Leases and Finance Leases.
Chattel Mortgages As Asset Loans
- A Chattel Mortgage has a fixed rate and a similar structure to a home loan. This type of loan uses a car or other piece of equipment as security for the loan. The ‘chattel’ is the asset being used as security for the loan, and the word ‘mortgage’ refers to the loan itself.
Novated Leases As Asset Loans
- Novated leases are used for vehicle financing. A novated lease is basically an agreement of finance where your business or company pays for your car lease and run costs via a salary packaging agreement. The ‘novation’ (or the lease being ‘novated’) refers to the arrangement for payment not falling on the employer (this is your company or business paying you your salary), not the employee.
Finance Leases As Asset Loans
- These are sometimes also known as a ‘capital lease‘ or a ‘sales lease‘. The finance company technically and for all legal purposes owns the asset, while you are ‘leasing’ the asset from them. The finance company also has full operational control over the asset as well as taking on the risk of the asset for you while you are leasing and utisiling it in your business. In this way, both the finance broker and you and your business share the actual economic risk of the asset or finance lease.
Are Lenders Reluctant To Provide Asset Loans To Australian Business?
- No, in fact, some lenders specialise in asset loans.
- The idea that it is difficult to obtain asset finance comes from the fact that many small business owners find it difficult to deal directly with banks. Each bank has its own jargon, its own set of policies, and its own list of requirements, which can make the process seem overwhelming. With over 20 years of experience in lending, NBS Home Loans has an in-depth understanding of each lenders’ requirements to approve an asset loan application.
Is It Possible To Use An Asset Loan To Pay Out Another Asset Loan? Is This Recommended?
- Yes, it is possible to use an asset loan to pay another asset loan. Even though this can be possible it is usually not recommended.
- Lenders normally provide lower interest rates on newly-purchased assets. If you are seeking finance on an existing/used asset you own, the interest rate and repayments will likely be higher due to increased risk to the lender from an older/used product. As we always say, if you want to refinance a business loan, there needs to be a clear financial benefit, and is many cases there will be no financial benefit moving from an asset finance loan for a new product to an asset finance loan for a (now) used product.
Can Asset Loans Be Renegotiated After Contract?
- In some cases, yes. However, as a general rule, this can generally not be done as the asset becomes too old and loses value.
- If you have specific needs around the flexibility of your asset loan we will take this into account when selecting an appropriate product.
What Unique Perspectives And Leverages Does NBS Home Loans Bring To Business Asset Loans?
- We have access to over 70 funders
- We understand that there is a loan out there for everybody; for any ABN/ACN holders
- We have the relationships to obtain asset loans and business loans
- We do not maximise our income by increasing the interest or established fees to keep your costs low; we do not gouge or pad rates and fees to maximise our income
An Asset Loan Is Generally Called An 'Asset Finance' ... Is This correct?
These loans are generally applied for as asset finance however contract may be Chattel Mortagage depending on who is financing it.
Asset Loans are sometimes called Asset and Equipment Finance as well.
How Asset Loans Can Optimise And Grow Your Business?
How Does Choosing The Asset Loan Save You Time And Money And Grow Your Business?
- There is a range of products and lenders out there, so it’s important to find one that matches your needs. NBS Home Loans can quickly compare many options across a range of lenders, helping to save you time and money.
- An asset loan gives you the equipment to trade. It can help your business to continue to trade, upgrade, expand, or offer better or more services.
- The benefit of an asset loan to each business is unique. For example, a gym might need more equipment to attract more clients, or a delivery company may be able to make more money by having an extra vehicle and driver on the road.
- In considering whether you need an asset loan, it’s important to weigh the cost vs the benefit to your business.
- An “ideal client” (i.e. several years in business and strong financial position) may be able to pick and choose from a range of options to find the lowest rate.
- For harder to place clients, it is more about finding the right lender with the lowest cost that is willing to lend.
“An asset loan actually keeps my wife on my road at the moment!”
What Do You Need To Know About Asset Loan Applications With NBS Home Loans?
What Are The Questions You Need To Ask Yourself Considering A Business Asset Loan?
- Why do you need an asset loan?
- How quickly do you need an asset loan?
- What benefit will an asset loan bring your business?
- Is an asset loan worth it?
- Do the benefits of an asset loan for your business outweigh the cost?
What Kinds Of Documentation Are Required For NBS Home Loans To Vet A Business Asset Loan Application
- As a general rule, we will require your ABN and your driver’s license (or acceptable photo idea) at a minimum.
- BAS statements and tax returns are also often required.
- You may be required to provide up-to-date copies of information from your ATO portal.
- You may also be asked to provide business references.
What Makes NBS Home Loans An Expert In Business Asset Loans?
- As well as being able to place asset loans directly with various lenders where appropriate, we also have access to experts that assist with the placement and processing of complex asset loans where required.
NBS Home Loans Work With Australian Small and Medium Businesses
I am a Small Business. Should I consider An Asset Loan?
Every business is unique and requires different equipment in order to successfully function.
If you require a vehicle or any special equipment in your business, you may wish to consider an asset loan. A private tutor working from home may not need to consider an asset loan, whereas a gym owner might.
How Does NBS Home Loans Help Small Businesses And Local Businesses In Sydney And In Australia?
- We take the time to understand your unique business, your goals and your financial situation, to make sure you are matched with an asset loan that meets your needs.
- At NBS Home Loans, we understand that very business is unique.
NBS Home Loans Work With Australian Large Businesses And Corporations
How Does NBS Home Loans Help Large Australian Businesses And Australian Corporations?
The answer is a simple one. We help any large business or corporation in exactly the same way as we help small business.
We take the same one-on-one approach to understanding your business needs and do not discriminate or treat any business differently.
We conduct ourselves with the same amount of passion, attention, effort, consideration and synergy whether you are a small or large business.
Australian Business Asset Loans With NBS Home Loans
NBS Home Loans aim to understand business, understand needs and put plans and strategies in place to grow needs through tailored financial solutions for ALL Australian Businesses.
Managing Your Business Cash Flow And Considering Tax Implications
NBS Home Loans shares some helpful hints about managing your business finances and the tax considerations which may impact an asset loan for business.
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Can Asset Finance Help Manage Cash Flow?
- As a general rule, no. Asset loans are generally not designed to improve short-term cash flow.
- However, if the asset generates more income for you without increasing expenses, then cash flow may theoretically increase.
- If the asset is not income-producing, it will reduce cash flow as you are adding a monthly expense. We do not recommend going down that road.
How Can An Australian Business Avoid Cash Flow Issues?
- As finance brokers, we do not provide advice in this space, although we have experts who can refer you to. We can recommend excellent financial planners and accountants to assist you with cash flow concerns.
- We make NO MONEY out of referrals to financial planners or accountants – It is a goodwill relationship only.
- Having a sound business plan in place and reviewing cash flow projections a regular basis is generally a good start.
- If a cash flow issue is identified, we may be able to assist with alternative options such as invoice financing or lines of credit, however, you should seek further information from your financial planner or accountant on whether this is appropriate for your business.
How Kind Of Tax And Depreciation Benefits Can Be Utilised When Securing A Business Asset Loan?
- Depreciation impact on tax return.
- Loss of value goes on the tax return.
- It’s important to weigh up the benefit and total cost. Losing a dollar to get back 30 cents is counterproductive to your business. You are better off making a $1 and paying 30c at the end of a year.
Other Business Asset Loan Questions Answered
What happens if I can’t meet the repayment schedules for my asset loan?
- Talk to Martin or another of our expert, caring lenders.
- Banks aren’t your only option.
- What is bad for one bank does not necessarily mean it is bad for another.
- Every bank has its own niche.
- Every bank has a unique risk appetite and your need may just match that bank’s appetite.
Can asset loans be renegotiated after contract?
- In some cases yes as a general rule no as the asset becomes too old.
OUR BUSINESS IS IN TROUBLE; WHAT SHOULD WE DO?
Our Business Is In Trouble Financially, What Should We Do?
- Talk to your accountant immediately.
- As a broker, this is something we do not specialise in, however, we certainly have experts we can recommend to help you.
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