Quick summary
This guide sets out practical steps to help you identify, compare and qualify for business finance in Australia. It is general information, not financial advice.
1. Chattel Mortgages vs. Operating Leases
Under a Chattel Mortgage, your business takes asset ownership from day one, typically allowing you to claim GST up front and write off depreciation under Australian tax rules. An Operating Lease functions like a rental, acting as an off-balance sheet operating expense. Check with your accountant first.
2. Asset Life Match Rules
Never fund technology with short obsolescence cycles over a long five-year term. Match the finance terms to the useful life of the machinery or tools. This ensures the equipment is still productive and generating revenue while you finish your repayments.
3. Protecting Business Cash Reserves
SMEs often make the mistake of using current cash reserves to buy large machinery, leaving themselves vulnerable to cash-flow pints. Financing major assets helps preserve active cash for daily wages, raw supplies, and unexpected growth opportunities.
Australian compliance and guidelines
- No credit check is run to show you indicative options.
- Rates and terms are set by the lender, not by Bizzloans.
- We compare Australian-registered lenders on our panel.
- Your information is handled under the Privacy Act 1988 (Cth).
