Important information

Please be aware of the following;

Effective Immediately Tuesday 6th March 2012 Credit License Cancellation Lodged By Us With ASIC

Ability Finance have elected to cease all credit activities covered by ASIC credit licensing for various reasons including but not limited to;

  1. Lender commission cuts over the past few years.
  2. Additional liability, workload and costs arising from National Credit Licensing
  3. Lender minimum volume restrictions which result in smaller brokers not being able to offer all options to customers.
  4. Regularly encountered inexperienced lender staff who are unaware of their own employers policies whose advice wastes both broker and customers time and resources.
  • As a blog style website there is only historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
  • Ability Finance, through choice, no longer represent any lenders who may be historically referred to within this website.
  • No information or content contained on this site should be relied on as being current.
  • No content contained within this site should be taken as advice in any way at all.

Should you feel there is any content that should be removed from this site please contact the webmaster.
By any chance you feel specific content is interpreted as offering any credit activities by us it is to be ignored, please report to the webmaster for removal or modification.
If you are legally entitled to engage in credit activities and would like to advertise on this site please contact the webmaster.
If you would like a website developed or even to purchase this site modified to your requirements please contact the webmaster.
Meanwhile we are working hard at creating a one stop shop for purchasing high quality spray painting equipment online including an extensive range of the best spray gun models we are able to offer at discounted prices everyday right across the complete range of available spray gun models. Online spray gun prices with old fashioned personal service levels.

Business Asset Finance

The optimal way to structure asset finance for a particular business is usually best advised by the accountant handling the financial affairs for that business. Different Finance products can deliver varying results to a business's bottom line especially in regards to taxation issues.

The main types of asset finance products for a business are finance lease, operating lease, chattel mortgage, novated lease and factoring or receivables finance.

Finance Lease provides up to 100% finance for the acquisition of plant or equipment to be used by the business. With a finance lease the ownership of the goods remain with the lender who often claims depreciation of the asset.

Operating Lease is an agreement to rent plant or equipment for business use normally for a predetermined period. The equipment is either returned to the financier at the expiration of the agreed lease term or an offer to purchase the goods for a mutually agreed price may be possible in many instances. Operating leases can be attractive to businesses who operate fleets of vehicles for example.

Commercial Hire Purchase is a contract where the financier (owner) allows the borrower (hirer) the right to possess and use a car or other vehicle or equipment in return for regular payments. A balloon payment is a final payment made at the end of the term and ideally this payment should be no more that the estimated value of the item at that time is optional with a commercial hire purchase agreement if it is preferred to reduce monthly repayment amounts. When the final payment of the commercial hire purchase is made, the title to the goods is transferred to the hirer. A hirer also usually has the option to purchase the hired goods prior to the end of the term of the contract.

Chattel Mortgage is a finance agreement where the borrower owns the vehicle, plant or equipment during the period of the loan. It is possible to usually claim both the depreciation and the GST that was included in the purchase price initially. This is one of the more popular and arguably the most common form of asset finance that is used especially for business purposes at present.

Novated Lease is a convenient and flexible way for employers and employees to jointly finance motor vehicles as part of a salary package arrangement.

Factoring or Receivables Finance is designed for businesses with high sales to debtors ratios which has an effect on limiting cash flow. Factoring or receivables finance can provide businesses with up to 80% of the value of their invoice total with the remaining payable following payment by the customer who was originally invoiced. Receivables or factoring finance can provide businesses with quick access to the cash tied up within their approved credit sales invoices.

Debtor Finance or Invoice Discounting is described on this page.