Asset loans are also often called asset finance or equipment finance, depending on what is being funded and the loan structure. There are three (3) kinds of Asset Loans;  Chattel Mortgages, Novated Leases and Finance Leases.

Chattel Mortgages As Asset Loans

• A Chattel Mortgage has a fixed rate and a similar structure to a home loan.  This type of loan uses a car or other piece of equipment as security for the loan.  The ‘chattel’ is the asset being used as security for the loan, and the word ‘mortgage’ refers to the loan itself.

Novated Leases As Asset Loans

• Novated leases are used for vehicle financing.  A novated lease is basically an agreement of finance where your business or company pays for your car lease and run costs via a salary packaging agreement.  The ‘novation’ (or the lease being ‘novated’) refers to the arrangement for payment not falling on the employer (this is your company or business paying you your salary), not the employee.

Finance Leases As Asset Loans

• These are sometimes also known as a ‘capital lease‘ or a ‘sales lease‘.   The finance company technically and for all legal purposes owns the asset, while you are ‘leasing’ the asset from them.  The finance company also has full operational control over the asset as well as taking on the risk of the asset for you while you are leasing and utisiling it in your business.  In this way, both the finance broker and you and your business share the actual economic risk of the asset or finance lease.

• No, in fact, some lenders specialise in asset loans.
• The idea that it is difficult to obtain asset finance comes from the fact that many small business owners find it difficult to deal directly with banks. Each bank has its own jargon, its own set of policies, and its own list of requirements, which can make the process seem overwhelming. With over 20 years of experience in lending, NBS Home Loans has an in-depth understanding of each lenders’ requirements to approve an asset loan application.

• Yes, it is possible to use an asset loan to pay another asset loan.  Even though this can be possible it is usually not recommended.
• Lenders normally provide lower interest rates on newly-purchased assets. If you are seeking finance on an existing/used asset you own, the interest rate and repayments will likely be higher due to increased risk to the lender from an older/used product. As we always say, if you want to refinance a business loan, there needs to be a clear financial benefit, and is many cases there will be no financial benefit moving from an asset finance loan for a new product to an asset finance loan for a (now) used product.

• In some cases, yes. However, as a general rule, this can generally not be done as the asset becomes too old and loses value. 
• If you have specific needs around the flexibility of your asset loan we will take this into account when selecting an appropriate product.

• We have access to over 70 funders
• We understand that there is a loan out there for everybody; for any ABN/ACN holders
• We have the relationships to obtain asset loans and business loans
• We do not maximise our income by increasing the interest or established fees to keep your costs low; we do not gouge or pad rates and fees to maximise our income

These loans are generally applied for as asset finance however contract may be Chattel Mortagage depending on who is financing it.

Asset Loans are sometimes called Asset and Equipment Finance as well.

• There is a range of products and lenders out there, so it’s important to find one that matches your needs. NBS Home Loans can quickly compare many options across a range of lenders, helping to save you time and money.
• An asset loan gives you the equipment to trade.  It can help your business to continue to trade, upgrade, expand, or offer better or more services. 
• The benefit of an asset loan to each business is unique. For example, a gym might need more equipment to attract more clients, or a delivery company may be able to make more money by having an extra vehicle and driver on the road.
• In considering whether you need an asset loan, it’s important to weigh the cost vs the benefit to your business.
• An “ideal client” (i.e. several years in business and strong financial position) may be able to pick and choose from a range of options to find the lowest rate.
• For harder to place clients, it is more about finding the right lender with the lowest cost that is willing to lend.

• Why do you need an asset loan?
• How quickly do you need an asset loan?
• What benefit will an asset loan bring your business?
• Is an asset loan worth it?
• Do the benefits of an asset loan for your business outweigh the cost?

• As a general rule, we will require your ABN and your driver’s license (or acceptable photo idea) at a minimum.
• BAS statements and tax returns are also often required.
• You may be required to provide up-to-date copies of information from your ATO portal.
• You may also be asked to provide business references.

• As well as being able to place asset loans directly with various lenders where appropriate, we also have access to experts that assist with the placement and processing of complex asset loans where required.

Every business is unique and requires different equipment in order to successfully function.

If you require a vehicle or any special equipment in your business, you may wish to consider an asset loan. A private tutor working from home may not need to consider an asset loan, whereas a gym owner might.

• We take the time to understand your unique business, your goals and your financial situation, to make sure you are matched with an asset loan that meets your needs.
• At NBS Home Loans, we understand that very business is unique.

The answer is a simple one.  We help any large business or corporation in exactly the same way as we help small business.

We take the same one-on-one approach to understanding your business needs and do not discriminate or treat any business differently.

We conduct ourselves with the same amount of passion, attention, effort, consideration and synergy whether you are a small or large business.

• Talk to Martin or another of our expert, caring lenders.
• Banks aren’t your only option.
• What is bad for one bank does not necessarily mean it is bad for another.
• Every bank has its own niche.
• Every bank has a unique risk appetite and your need may just match that bank’s appetite.

• In some cases yes as a general rule no as the asset becomes too old.

• Talk to your accountant immediately.
• As a broker, this is something we do not specialise in, however, we certainly have experts we can recommend to help you.