Business loans function similar to other loan products. If approved, your lender will provide finance to assist with your business’ working capital or the purchasing of an asset, and you’ll be charged either a fixed or variable interest rate over the loan term.
A chattel mortgage is a business loan product that’s commonly used for equipment financing. With a chattel mortgage, a lender provides your business with cash in the form of a loan to purchase the equipment, and this equipment is then used as collateral for the life of the loan.
With an unsecured loan, you’re able to secure financing for your business without using an asset as collateral. Because you’re not borrowing against an asset, the lender will typically assess your business’ cash flows, trading history, and creditworthiness as part of your applicatio
Also referred to as “asset finance”, equipment loans are commonly used by businesses to purchase things like machinery, vehicles, and other technology. There are various loan arrangements available for this kind of financing, including hire-purchase agreement, and a lease agreement.
Before you finance or lease a car, look at your financial situation to make sure you have enough income to cover your monthly living expenses.