Business finance fit for purpose
Your vehicle isn’t the only thing that needs to be fit for purpose. If you’re looking for business vehicle finance, it needs to work for you too. A Business+ Vehicle Loan can help you buy the right vehicle for the job, including:
- Cars
- 4WDs
- Cab chassis
- Light commercial trucks
- Utes
- Vans
Do your research into business vehicle financing to make sure it suits your business. Consider the repayments your business can afford to make without straining your cash flow. A longer loan term can reduce your regular repayment amount, as can a balloon payment (an option to pay lump sum at the end of the loan term).
Keep your cash flowing
We talk about cash flow a lot. But it remains one of the big challenges for any business owner.
Worryingly, small business owners often use their personal assets to support the needs of their business. It’s not uncommon for them to dip into their savings, take out personal loans, extend their mortgage, or even use personal credit cards to pay for business expenses. This practice can blur the lines between personal and business finances and can complicate tax time leading to even higher expenses.
And even if your business can buy a vehicle using your business savings, it can drain resources away from other plans you might have.
A business car loan, or other kind of asset finance, can help minimise the impact on your cash flow by spreading the cost of the vehicle over the years of its life.
The Business+ Vehicle Loan has a fixed interest rate, so you’ll have certainty about your repayment amount for the life of the loan. A fixed repayment amount makes budgeting easier too.
We touched on it earlier, but business vehicle loans can offer an optional balloon payment in line with the expected value of your vehicle at the end of the loan term. This can help lower your repayments to free up your cash resources.
Tantalising tax benefits
There are potential tax benefits for business owners who finance a business vehicle. Depending on the vehicle you use and how many kilometres you drive, you might claim for:
- Interest paid on vehicle loan repayments
- Depreciation value of the vehicle
- Expenses such as fuel, registration, and insurance
- GST credits.
Talk with your accountant or tax professional or visit the Australia Taxation Office (ATO) website to learn more about claiming a tax deduction for motor vehicle expenses.
Government incentives for small business owners
The Federal Government offers incentives to make buying a business vehicle more attractive to small business owners.
One example is the ‘instant asset write-off’. If you buy a new vehicle for your business, you may be able to claim a portion of the purchase price as an immediate deduction instead of depreciating the asset over several years. This may give you substantial tax relief in that first year, which could improve your cash flow and open opportunities to reinvest in other areas of your business.
To learn more about these incentives, visit the Australian Taxation Office (ATO) website.
Once again, talk with your accountant or tax professional for advice on government incentives that may apply to you.
Time to apply
Yes, we’re about to push our own barrow by promoting the Business+ Vehicle Loan (no, you can’t buy a barrow with one). Here are a few reasons why you should consider it:
- You can buy a new or second-hand vehicle for your business.
- Its interest rate is competitive and fixed for the life of the loan so you can budget with certainty.
- No upfront deposit or extra security is needed.
- An optional balloon payment helps reduce your repayments and the burden on your cash flow.
- You can apply online in just 20 minutes.
A business vehicle loan offers many benefits for the small business owner, from preserving your personal assets and protecting cash flow, to potential tax benefits and government incentives.
By choosing the right loan (cough, Business+ Vehicle Loan), you can choose the right vehicle to keep your business running smoothly.
Remember to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
