The main ways businesses and individuals finance vehicles, equipment and other assets.
9 terms in this topic
Asset finance is the umbrella term for business finance that pays for vehicles, equipment and other income-producing assets, with the asset itself acting as the security.
Read definitionA chattel mortgage is a business loan for a vehicle or equipment: you own the asset from settlement and the lender holds a security interest until it is repaid.
Read definitionEquipment finance is business finance used to buy or lease machinery, vehicles and other equipment, where the equipment itself secures the loan or is owned by the financier.
Read definitionA finance lease is a lease where the financier owns the asset and your business pays to use it for most of its life, taking on the risks of ownership.
Read definitionHire purchase is a finance agreement where a financier buys an asset and hires it to you for fixed instalments, with ownership passing to you at the final payment.
Read definitionA lease is a contract giving the lessee the right to use an asset owned by the lessor for a set term in return for payments.
Read definitionA loan is money advanced by a lender to a borrower, repaid as principal plus interest over an agreed term under a contract.
Read definitionA novated lease is a three-way car lease where your employer takes over the lease payments and deducts them from your salary, mostly before tax, while you work there.
Read definitionAn operating lease is a lease where you pay to use an asset for a set term and hand it back, with the financier keeping ownership and the resale risk.
Read definitionCompare finance options from 50+ lenders. Subject to lender approval, terms and conditions apply.
Get started