D-08
Commercial loans
Finance for shops, offices, warehouses and mixed-use property, for owner-occupiers and investors across Australia.
Find out more : Commercial loansD-10
Car & equipment finance
Car and Equipment Finance
Plain English. Properly structured.
Utes, excavators, trucks, coffee machines, medical equipment or the family car. Asset finance keeps your cash in the business while you get the gear you need. We arrange car and equipment finance for clients across Australia, from our base in Oakleigh, Victoria.
01 — What it is
Car & equipment finance, in plain English.
Asset finance is a loan or lease secured against the item you are buying. Because the asset itself is the security, approvals can be quicker and the paperwork lighter than with property lending, particularly for established businesses.
There are a few common structures. A chattel mortgage lets a business own the asset from day one while the lender holds security over it. A finance lease or rental means the lender owns the asset and you pay to use it. A novated lease is a salary packaging arrangement through your employer. A consumer car loan is for personal vehicles. Each has different tax and GST implications, so your accountant should weigh in on which suits.
Most asset finance has a fixed rate and fixed repayments over a set term. Many structures allow a balloon or residual payment at the end, which lowers regular repayments but leaves a larger lump sum to pay, refinance or trade out of when the term finishes.
We compare lenders across banks and specialist asset financiers, work with your dealer or supplier on the paperwork, and make sure the structure fits your business cash flow, not just the sticker price.
02 — Who it suits
Is this the right fit?
- [A]Tradies and builders upgrading utes, trucks or tools
- [B]Businesses buying machinery, fit-out or technology
- [C]Medical and allied health practices buying equipment
- [D]Individuals buying a personal car
- [E]Employees considering a novated lease
- [F]Clients anywhere in Australia, with a home base in Oakleigh, Victoria
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Tell us what you need
Tell us what you need
The asset, the supplier, the rough price and how it will be used. New, used or private sale.
- 02Stage 2 of 4Choose the structure
Choose the structure
Chattel mortgage, lease or consumer loan. We explain the differences and you check the tax side with your accountant.
- 03Stage 3 of 4Approve
Approve
We compare lenders, submit the application and get approval in place before you commit to the supplier.
- 04Stage 4 of 4Settle with the supplier
Settle with the supplier
We handle invoices and paperwork with the dealer or supplier so you can take delivery.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | Supplier invoice or quote | With the asset details and price. |
| M-02 | ABN details | For business finance, including how long it has been registered. |
| M-03 | Financials | Larger amounts may need tax returns or financial statements. |
| M-04 | Photo ID | Driver's licence for each applicant or guarantor. |
| M-05 | Bank statements | Sometimes used instead of full financials for smaller amounts. |
| M-06 | Insurance | Comprehensive insurance is usually required before settlement. |
05 — Common mistakes
What to avoid.
Check 01
Taking dealer finance without comparing
Check 02
Oversized balloon
Check 03
Ignoring the tax side
Check 04
Too long a term
Q-01What is a chattel mortgage?
A business loan where you own the asset from the start and the lender takes security over it. It is one of the most common structures for business vehicles and equipment.
Q-02Can I finance a used vehicle or private sale?
Often, yes. Lenders have rules on age and condition, and private sales need extra checks. We will tell you what applies.
Q-03What is a balloon payment?
A lump sum due at the end of the term. It lowers regular repayments but must be paid, refinanced or traded out at the end.
Q-04Can a new business get equipment finance?
It can be harder, but some lenders do lend to newer ABNs, sometimes with a deposit or other security.
Q-05Does car finance affect my home loan borrowing power?
Yes. Any car loan repayment reduces how much you can borrow for a home. If you are planning both, talk to us about timing.
Q-06Do you arrange finance outside Victoria?
Yes, Australia-wide. We are based in Oakleigh, Victoria.
07 — Related
Related loans.
D-07
Self-employed & low doc
Home loans for business owners, contractors and sole traders, including low doc options when tax returns lag behind.
Find out more : Self-employed & low docD-01
Home loans
Buying your next home or an investment property in Melbourne. We compare lenders and structure the loan around your plans.
Find out more : Home loans08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.