Commercial Finance – Commercial Hire Purchase

Tue, 24 Nov 2009 18:01:02 +0000

Commercial Hire Purchase (also known as Asset Purchase or “CHP”) is similar to leasing, except the customer claims the allowable depreciation on the equipment plus interest as a tax deduction, as opposed to claiming the actual lease payments, as with a finance lease. The choice between the two will depend on which option maximizes the company’s tax deduction. This in turn will depend on the term and the depreciation rate allowable on the equipment.

Payment Structure

The customer can structure the payments so that nothing is owed at the end of the term or a small “balloon” payment (like a “residual” in a finance lease) can be used to offset and reduce monthly payments.

Advantages

• Unlike a finance lease, no restrictions apply to term structures.
• Tax ownership lies with lessee – interest expense and depreciation are claimed.

Disadvantages

• For those on the “cash” method of accounting, GST is claimed and amortized over the duration of the loan period.
• Amount financed inclusive of GST – interest expense is therefore higher.

Equipment Finance Broking Firm

Established in 1990, Melbourne Finance Broking is regarded as one of the most progressive equipment finance broking firms in Australia. With over 40 staff around the country and realizing enormous finance volumes (commanding significant buying power), the broking house deals with over 30 of Australia’s banks and lending institutions, including some with exclusive agency.

Heavy Equipment Financing

Each broker or broking team within Melbourne Finance runs their own business specialty. The corporate entity, Heavy Equipment Finance Australia (HEFA), was introduced by one of the teams in 2005 to more accurately signify their heavy equipment financing specialty, as well as better reflect their interstate expansion.

The HEFA team is unsurpassed in its experience and dedication to servicing the industries utilization heavy machinery, including Earth-moving, construction, road making, mining, demolition, forestry and agriculture.

By: Paul Jennings

Car Title Loans – Four Reasons To Opt For Them

Wed, 18 Nov 2009 22:43:19 +0000

Paul urgently needed $2,000 to make some payments. Though he was eligible for a bank loan, the whole process of getting a loan would take too long. That’s when a close friend suggested he try a car title loan. Paul was intrigued by the idea and decided to try it. He approached a local car title loan agency. His application was processed and approved in less than a day. Paul was really happy he used this service. He got the money he wanted quickly without any hassles.

What are car title loans?

Car title loans are short-term loans that are secured using your car title. This simply means that you can get a loan using your car as collateral. The lender will give you the money and at the end of the loan period, you pay it back. During the loan period you can continue to use your car.

Why you should opt for car title loans?

Why would someone want to apply for car title loans? Here are some of the advantages:

Quick cash: Car title loans are fast and easy to procure. You fill out an online application form and submit it. Then, a representative of the loan agency closest to your home will contact you, check your car ownership documents, and if all is in order, approve your loan. Or you could walk into the loan agency’s office yourself and walk out with a loan in 30 minutes.

No questions asked: Car title loans guarantee cash, with no questions asked. When you apply for a loan, the lender may ask you why you need the money but that does not influence the loan approval decision in any way.

Fast payback options: The loan period on car title loans is a maximum of 30 days. This means you get your cash and only have to pay it back at the end of the month. No complicated calculations on monthly payment checks and fluctuating interest rates, which are common to other loans.

Easy to break: If you apply for a loan and then realize you do not need it, you are under no obligation to continue. All you have to do is pay back the amount you borrowed and your loan ends. If you pay back the loan within a day of receiving it, you don’t even pay any interest on the loan amount.

By: Alisha Delphi

Finance Loan » Loan Period

Commercial Finance – Commercial Hire Purchase

Car Title Loans – Four Reasons To Opt For Them