Our NBS Asset Loan Services
An asset loan is a loan to finance the purchase of an asset with a serial number whether a car, a coffee machine, a treadmill, a generator, pretty much anything with a serial number or VIN number.
The Facts About Asset Loans In Australia
Are asset loans difficult to be approved with banks?
- No. Not at all.
- Banks consider the asset over the income
- The big thing about asset finance is for self-employed people; they can find it difficult when dealing with banks
- What can let you down is your tax obligations when seeking an asset loan, however for an ideal client you are looking at interest rates 4% upwards for not ideal as a client around the 20% mark
- We have access products for everybody in regards to asset loans and business loans
- In considering if you need an asset loan you have to outweigh the cost vs the benefit
What unique perspectives and leverages does NBS Home Loans bring to 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
What kind of Asset Loans are there?
Chattel Mortgages, Novated Leases and Finance Leases
Like a home loan, a Chattel Mortgage has a fixed rate and a similar structure. You can secure a loan using a car, or equipment as security for your asset loan. In this respect the ‘chattel’ is the asset that is used for its VALUE to SECURE the loan. Then the word ‘mortgage’ refers to the actual loan that is being given.
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; hence the ‘lease’ aspect and any running costs the use of the vehicle or vehicles attract The lease is invoked via a ‘salary packaging’ agreement. The ‘novation’ or the lease being ‘novated’ refers to the arrangement for a payment not falling on the employee but to the employer (this is your company or business paying you your salary).
Sometimes also known as a ‘capital lease‘ or a ‘sales lease‘. For all legal terms of ownership, the finance company technically and for all purposes own the assets while you are ‘leasing’ an asset. The finance company also have 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 your business (you) share the actual economic risk of the asset or finance lease.
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 right asset loan save you time and money and grow your business?
- The main factors to grow your business with an asset loan are the cost and the benefit; there are a range of products and lenders out there
- By going to a broker as an “ideal client” you can pick and choose the best rates
- For harder to place clients, it is more about finding the right lender with the lowest cost that will actually lend them the money
- An asset loan gives you the equipment to trade. It grows your business to continue trading or better offer more services. Clients are unique to each business; for a gym who need more equipment to attract more clients or to a cab driver that allows continuing pick up of fares or making more money by having another driver on the road, for examples.
- In terms of growth, business asset loans are unique to business in terms of asset finance
Marty from NBS Home Loans says…
“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 an asset loan?
- How badly do you need the asset loan?
- Why 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 an application?
- As a general rule, the minimum is your ABN and your Driver’s license
- BAS statements and tax returns can be required
- ATO portals
- Business references
What makes NBS Home Loans expert in Asset Loans?
- We are a ‘Blessed Access Processing Centre’; that is we have access to experts that assist with the placement of Asset Loans and their processing
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. A personal trainer does not need an asset loan, a cafe could, for example.
Considering an asset loan for a small or medium busienss depends on the nature business is the honest answer; the private tutor would not consider an asset loan whereas a gym would
How does NBS Home Loans help small businesses and local businesses?
- Every business is unique. A personal trainer does not need an asset loan, a cafe could, for example
- Depends on the nature business is the honest answer; the private tutor would not consider an asset loan whereas a gym would
NBS Home Loans Work With Australian Large Businesses And Corporations
How does NBS Home Loans help large businesses and 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 do not distinguish 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
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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
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 in any way?
- As a general rule, no.
- If the asset generates more income than cash flow then it should increase cash flow theoretically
- 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 at all.
How can a business avoid cash flow issues?
- Nothing to do with finance – this is a financial planning question – we have experts we can recommend you can speak to
- Through having a sound business plan in place and cash flow projections and reviewing on a regular basis
- We can recommend excellent financial planners and accountants to assist you with cash flow
- We also make NO MONEY out of referrals to financial planners – it is all a goodwill relationship only
What kind of tax and depreciation benefits can be utilised when securing an asset loan?
- Depreciation impact on tax return
- Loss of value goes on the tax return
- People do not understand losing a dollar to get back 30 cents – trying to reduce costs in tax is counterproductive to your business
- You are better off making a $1 and paying 30c at the end of a year than trying to decrease what you owe – focus on making more, not reducing tax to less
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
Is it possible to use an asset loan to pay another asset loan and is this recommended?
- Yes, but not recommended
- As we always say, if you want to refinance in business loans there needs to be a financial benefit
- If you move from a new product (loan) to a used product (loan), due to the risk factor to the bank, the interest rate and repayments are higher that is demanded by them. Something to remember.
OUR BUSINESS IS IN TROUBLE; WHAT SHOULD WE DO?
We’re in trouble and we need financial advice for our small/medium/large business; what should we do fist?
- Talk to your accountant.
- 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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