![]() For the average person using finance to buy a car or any other household consumer product means diving into the world of Asset Finance. The concepts and terms can seem confusing, but it doesn’t have to be that way. Today we’re going to give you an introduction to Asset Finance and some of the main financing options. Asset Finance is a broad term often used to explain the range of financing options available when aquiring consumer products such as vehicles, boats, caravans, machinery, office equipment and household items like TV’s and computers. Under the term Asset Finance there are a number of actual financing options such as Chattel Mortgages, Finance Leases, and Personal Loans etc. Chattel Mortgages This is a popular method of financing vehicle purchases (new and used) and a range of other equipment and machinery assets. Under this arrangement, you have possession and use of the asset in return for making the regular payments to the lender. The lender (bank etc) takes a ‘security’, (mortgage) over the asset in exchange for providing the loan funds. By way of comparison, it’s like a home loan and mortgage where the lender may repossess the asset if you don’t make the repayments. The loan in finalised once the final payment has been made. There are a range of features and benefits relating to this finance option including balloon payments, loan terms and potential tax benefits. Like any finance option you need to determine if it’s suitable for your circumstances. Check out http://www.hewcorpfinance.com.au/asset-finance-options.html for more information. Finance Leases This method of finance is often used to fund both new and used vehicle purchases and other equipment and machinery assets. Many computer, electrical and furniture stores offer this option when purchasing equipment. In this case, the asset is owned by the lender, but the customer has possession of it in return for making regular lease payments. Once the final payment has been made, including any balloon payment, the ownership of the asset transfers to the customer. There are a range of features and benefits including loan terms and potential tax benefits. If you are self-employed and own a business, a Finance Lease can be a tax effective way of financing assets. Check out http://www.hewcorpfinance.com.au/asset-finance-options.html for more information. Personal Loans This option is used for purchasing older assets as lenders often place restrictions on the type, age, and value of assets they are prepared to finance. Personal loans aren’t secured against the asset, and consequently, the rate is usually higher than a chattel mortgage or lease. Hewcorp Finance provides professional home, motor vehicle, truck, caravan, marine and asset finance services to customers in Redland Bay, Bayside suburbs, and the greater Brisbane region. You can follow Owen at https://www.linkedin.com/in/owensjkirk and LIKE us on Facebook @ https://www.facebook.com/hewcorpfinance/ Written and Published by www.presentprofessionally.com.au
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