Financing Option: Novated Lease

Normally, financing arrangements are entered into by two parties: the borrower and lender. With novated leasing, however, there are three parties involved: the borrower, the borrower’s employer, and the lender.

As an employer, under a novated lease, you'll agree to make the lease payments on behalf of your employee via salary deductions. Apart from that, a novated lease works pretty much like a typical car lease for business. At the end of the lease agreement, you can choose one of these options: buy the car, enter into another lease, or sell the car.

Financing Option: Chattel Mortgage

Chattel mortgage is basically mortgage for anything other than real estate or items connected to real estate. It's derived from the French word "chatel," which has evolved over the years from the Latin word "caput," meaning "head." Vehicles are one of the most common items acquired through chattel mortgage.

It works the same way as a consumer car loan, save for a few differences. First, it's a business use loan, meaning a vehicle purchased under chattel mortgage must be used for business at least 50 percent of the time. Second, chattel mortgage rates are usually lower than those of regular car loans.

Better Chattel Mortgage Rates and Laws Ease the Way to Car Ownership

The Office didn’t provide specific details about the new laws, but it can be assumed that they’re designed to make chattel mortgages more appealing and better controlled. Those unfamiliar with these special mortgage packages should consult reputable finance companies, like Credit Group Australia which also offers some of the best chattel mortgage rates in Melbourne, Perth, and other cities in the country. All there is to say about chattel mortgages is that they’re a great way for a business to lease and/or own a vehicle because they have fixed monthly payments and interest rates, as well as faster loan approvals. Perhaps the concept should be explained in greater detail. In a chattel mortgage arrangement, the financier takes a mortgage and gives the borrower the money needed to purchase a vehicle, in return for the borrower paying the mortgage over a period of time.
http://creditgroup.com.au/News/12/Better-Chattel-Mortgage-Rates-and-Laws-Ease-the-Way-to-Car-Ownership

Business Vehicle Finance Options Give Perth’s SMEs Potential to Grow

When it comes to the latter, Zurich discourages SMEs from cutting corners, such as reducing their workforce, because doing so creates a work environment where mistakes and accidents are more likely to occur. Instead, SMEs should adopt more practical solutions to save money, such as choosing one of the many business vehicle finance services offered by companies such as Credit Group Australia. Vehicle leasing, in particular, is a sensible choice if SMEs wish to reduce their vehicle monthly payments, tax bills, and other costs associated with operating a small business fleet. In addition, vehicle leasing gives SMEs fewer headaches since their contract options can include maintenance services for them, allowing employers to simply focus on making money. Even a standard car lease can provide SMEs great opportunities for growth.
http://creditgroup.com.au/News/11/Business-Vehicle-Finance-Options-Give-Perth%E2%80%99s-SMEs-Potential-to-Grow

Doing a Novated Lease

Most business owners acquire vehicles for work-related purposes. On some occasions, however, at least one employee may need a vehicle for his/her duties and for use off-hours. Companies may provide senior personnel with a vehicle under the individual’s compensation package. This requires taking out one through a novated car leasing programme.

Getting a Company Car for Employees’ Use

Businesses with employees who travel often on official functions need to have their own company transportation to shuttle these employees. Allowing the workers to use personal vehicles for business matters isn’t so professional, and letting them use public transportation individually might not be cost-effective in the long run. Besides, when a meeting must go ahead at a prearranged time and place, relying on public transport schedules can be counter-productive.

This calls for acquiring your own service vehicle. When you don’t have money to spare to finance one, taking out a car on loan from a business vehicle finance company may work.

Flexible Chattel Mortgage Rates and Leases Allow Easy Car Ownership

Businesses should bear in mind that there are several helpful ways for them to acquire vehicles for their workers to use without straining their budget. One method is to apply for chattel mortgages—which have low interest rates, several terms options for flexibility, a variety of residual value options, and even tax deductions for the payments made. Another option comes from lenders like Credit Group that offer a range of finance options including a commercial car lease in Melbourne and all major cities around Australia. A lease can feature various benefits such as discounts, servicing, insurance, and more, depending on the lender.
http://creditgroup.com.au/News/10/Flexible-Chattel-Mortgage-Rates-and-Leases-Allow-Easy-Car-Ownership

The Value and Versatility of a Business Vehicle Finance Arrangement

Companies and business owners looking for commercial auto finance plans should consider the options available to them before jumping in. There are two choices that they can choose from: buying the vehicles through a loan or leasing them. Of the two, a business car lease in Perth allows for more flexibility since the automobile’s residual value can potentially lower its lease cost. Additionally, commercial car lease payments are tax deductible, which can be helpful in a pinch. Although the price of vehicles is in danger of rising, Australian businesses have nothing to fear if they choose the right financial options.
http://creditgroup.com.au/News/9/The-Value-and-Versatility-of-a-Business-Vehicle-Finance-Arrangement

Trusted Finance and Leasing Company Announces Launch of Its New Website

Osborne Park, Western Australia (September 8, 2014) – Credit Group Australia, a trusted finance and leasing company specialising in business vehicle finance, is proud to announce the launch of their new website which has been specifically designed to provide consumers with a wealth of useful information. The new online portal is intended to help prospective clients make more informed decisions about their personal, business, and corporate financing and leasing needs. The new website embodies simplicity and accessibility in web design to highlight the company’s services and to easily direct customers to the specific product or service information they require. Links to Credit Group Australia’s property finance, business funding, and vehicle financing and leasing services are located just below the large scrolling homepage banners to speed up navigation of the site so clients can find the information they are looking for quickly and easily.
http://creditgroup.com.au/News/8/Trusted-Finance-and-Leasing-Company-Announces-Launch-of-Its-New-Website

Car Leasing in Melbourne: Learn More about Novated Car Leasing Method

When it’s time for a company to purchase a fleet of vehicles, the first question you’ll often hear people ask is not what vehicle brand or model to pick, but how they’re going to pay for it. With so many car finance options available today, car financing can be a minefield for start-up companies or anyone who’s still wet behind the ears on the subject. Whether you’re an employer or employee, it will do you well to learn about the novated leasing method offered by Melbourne car leasing companies.
http://creditgroup.com.au/News/7/Car-Leasing-in-Melbourne-Learn-More-about-Novated-Car-Leasing-Method

Would You Take the Cash or Drive the Car?

A car these days is no longer a luxury… it’s an absolute necessity. It’s nothing new for businesses to offer employees cars as part of their compensation and benefits package. So if an employer offered you either a car allowance or car leasing in Melbourne, which one would be best for your needs?  Here’s a little insight on the pros and cons of both to help you decide.

Anticipated Issues with Buying New Cars Online

Those who want a more convenient and safe travel to their school or workplace should consider buying their own car. It has to be anticipated, though, that since car purchase involves a great deal of money, the process can be a bit daunting. This process is about to become more difficult for both buyers and sellers, and the prices can go higher should the Federal Government’s proposal to permit new cars to be ordered online be passed.

Life After Lease: What to Do After a Car Lease

Like all financial arrangements, car leases eventually expire, usually after a span of four years (the most common car lease term duration). Once the lease ends, buyers have a number of options available to them: they can either choose to return their vehicles to their lenders, extend their leases for a few months more, or opt to purchase the vehicle from the owner. Learning when to choose one or the other is important in order to get the most out of a vehicle lease.

Rides for Work: Financing a Business Vehicle

Transportation is an invaluable asset to anyone who needs to get to his workplace on time. It becomes even more important to those whose businesses require the movement of goods from one point to another. Businesses and companies will certainly need transportation of their own, for as long as the automobiles are used for official purposes. However, it can be costly to maintain a fleet of vehicles for business use without some form of financial arrangement in place.

Fortunately for businesses, they can secure business car loans to purchase vehicles of their own. Many lenders offer special car loans marketed exclusively for business clients, which makes it easier for companies to find a loan flexible enough for their funds. Business car loans differ from regular car loans in that the vehicles purchased through the former are considered business expenses, and will be taxed to the company who owns it, while vehicles acquired through the latter are considered private property and thus taxed normally.

To take out a business car loan, a company first needs to check its credit report to ensure a smooth loan approval. Next, the company needs to shop for the best possible quote among lenders; if a good deal is possible, it should not be missed. Finally, the company should decide between a fixed and an adjustable rate loan. The first is suitable for when current interest rates are low, while the second is better for higher rates.

Car Leasing vs. Buying: Which Should You Pick?

Should you sign up for car leasing or buy a car? As you decide, you have to consider the pros and cons of each. Here are some points to ponder on so you can make an informed and, hopefully, satisfying choice.

Steps to Take in Getting a Business Loan

Unless you have as much cash to burn as a Fortune 500 company, you will have to rely on a professional lending company in getting costly properties at once. Examples include a car, capital investment for starting a business, or even a car for your business. Here are some of the most important things you should consider when getting a business loan.