Are you a registered business owner? If you are an ABN (Australian Business Number) holder with a short term ABN or no financials, it’s possible to get a car loan for your business.
Generally most banks will not accept car loan applications from ABN holders if the business has not been active for at least 12 months, with the majority of banks asking for 2 years of business activity.
So is it possible as a new ABN holder finance a vehicle for work?
The simple answer is ‘Yes’ however there are many different lenders and loan products on offer. Some may ask you to provide proof of any previous credit repayment history, or in some cases ask for a deposit toward the car purchase.We understand leisure finance and can help find a suitable loan
The Options Available For ABN Holders
As a business owner, you may not have the regular documentation that employees get such as payslips. There is a way, however, for you to get finance for a vehicle – this is where low doc car loans come in.
Low doc car loans or Fast Track Loans lets ABN holders acquire car loans without the typical documentation required.
Different types of options ABN car loan for ABN holders include:
- Finance lease
This option involves leasing the vehicle from a lender. This option is typically used by self-employed Australians. The big difference between this option and a commercial hire purchase is the advance payment option and the flexible terms including those of the balloon payment.
- Tax deductions are typically claimed for lease payments.
- Advance payments are possible.
- Flexible terms including the balloon payment.
- Chattel mortgage
In this case, your lender will provide the finance with which you can purchase the vehicle. During the repayment period, the lender will have a security interest held over the asset in the form of a ‘mortgage’.
- If you’re registered for GST input tax credits may be claimable.
- Lower monthly repayments as balloon payments are available.
- Flexible terms; usually 2 – 7 years.
- Commercial hire purchase
This option is a fixed rate car loan. It involves that lender buying the vehicle on your behalf and then leasing it to you. The vehicle belongs to the lender until the value of which has been paid back in full.
- Tax deductions are typically available such as loan repayments.
- Customisable loan features.
- Fixed interest rates.
Not sure on what loan option is suitable for your business? iCREDIT can help you with the facts on the types of low-cost loans available and find the best possible deal.