Is your business ready to invest in a vehicle but want to make sure you find the best business car finance solution to suit your business’s budget and needs?
Before you can find, compare and choose the best vehicle for your business, you need to know what financing options are available to you. Here we define what business car financing is and what options you can choose from.
Business Car Financing
If your business doesn’t have the capital to buy a vehicle with cash, then you will probably be looking into car financing options for your business. A great solution for this is to obtain a car loan whereby the business makes monthly repayments with interest over a longer period of time. Business car financing is more tailored to your business than a normal loan.
Here are some other business car financing options:
- Chattel Mortgage
This is a loan agreement in which the vehicle of the business is used as security for the loan. This ‘moveable property’ or chattel secures the loan. The benefit of this loan is that you can claim the GST on the depreciation, interest charges and price of the vehicle. With Chattel Mortgage, you take on the risk of the resale value of the vehicle after use.
- Hire Purchase
With hire purchase, you would normally pay a deposit upfront followed by monthly installments until you have paid off the amount you owe. You are essentially hiring the vehicle over a period after which you can choose to buy the vehicle at the end. Until you have made your ‘last’ payment, you do not own the car.
Leasing a vehicle is similar to a hire purchase, whereby the lender owns the car and leases it to the business over a period of time, after which the business simply hands the vehicle back. This means that the lender takes on the full responsibility and risk of the vehicle.
At iCREDIT, you will receive a dedicated finance manager to find the best business car finance options for you to choose from. Chat to our financial professionals today to get started on comparing loans to best suit your business structure and cash flow.