Depending on your individual or company situation it’s crucial to get it right the first time. Having a team of experts to tailor to your own specifics can make all the difference. We want to discuss your goals with the new purchase, your budget requirements, and a change of plan strategy to provide you a complete solution weather personal or commercial that ensures you optimum results for your boat loan.
When constructing a boat loan application we will consider all the facts on your side. Presenting a boat loan application to lender can come with serious outcomes i.e. presenting it incorrectly could ultimately lose your ability with acquiring a loan even with another lender! All lenders have the ability to see where you have applied before, thus if rejected once or twice will have a massive bearing on your finance opportunity.
At MFIA we have a deep understanding of lender requirements – thus if we can see what could enviably result in a loan decline, we will protect your CRA (credit reference authority) and not submit. What transpires today can affect you for years in trying to acquire finance.
Consumer loans for boats and cars in Australia tend to be a secured loan. They generally attract a lower interest rate than an unsecured loan. Reason being the lender will take the item as security requiring you to payout the item if you trade or sell the item within the time frame of the loan.
The lender takes no security over the item and makes it flexible should you need the loan for multiple purposes – i.e. holidays, debt consolidation or item that would not normally qualify for secured lending. However unsecured loans are now available in some areas or Australia and will have a higher interest rate than a secured loan. Check with our specialist’s for all the options available to you and your personal situation.
Businesses that operate under a cash accounting basis can claim the full input tax credit from GST incurred expenses. This is basically a charge over the goods that will be financed. Various structures similar with Asset purchases and a Finance lease can be tailored to your operation.
Lease rentals are tax deductible provided the item is connected with producing income. The item is owned by the finance company. At the end of the term you can make an offer to purchase the item, replace it, return it, or extend the term. Very similar to a rental agreement, where a residual value is nominated to determine the items value at the end of the term.
Popular choice for businesses wanting to supply their employees with a motor vehicle. This form of lease is basically an agreement between the finance company, the employee and their employer.
Benefits with this type of lease could include:
• Employee choice of vehicle while having a company car
• Removal of administration in managing a fleet of vehicles
• No ongoing responsibility if a employee leaves the company
• Running costs of vehicle can be negotiated with the employee
A Finance Lease Agreement is created between the bank and the employee. All parties enter into a Novation Agreement. This transfers the lease responsibility to the employer during the employment period. The lease responsibility then returns to the employee upon leaving employment and the novation ends.
As basic as a rental agreement, with the option of including a trade in or deposit to reduce repayments. Balloons or residuals can also be implemented or structure the rental repayments to clear the debt in full over the term.
Ownership rests with the Lender until the final payment is made. For tax purposes your business income can claim depreciation and any interest paid during the term. Automatic ownership takes place if all the terms of the agreement have been complete.
Whatever your needs, check with our specialists on a structure plan to best suit you!
For more information, or if you are looking at purchasing any other types of equipment please visit our group web page www.mfiagroup.com.au
