Personal Loans is an area that needs caution. Simply applying for a Personal Loan can affect your credit Report and the ability to obtain competitive finance. Money Buckets can assess your situation and Personal Loan needs without affecting your credit report any further. Simply fill out our form, send the checklist of requirements and we will check things out. Is this loan going to fit into your Budget, what must you allow to live on from here? Is there a another option.

We will find the best option available to suit your circumstances.

As with any Loans there is competition among Lenders in Car Loans. As with all lending there are a variety of Lenders who are good in particular circumstances. The aim is to find the right Lender for your circumstances.

ABN Holders and Property Owners. If you are a property owner or have an ABN there is normally more favourable funding available. This is at a considerable discount to a normal car loan. Contact us to assess the situation. Feel free to download our Application and Analysis Form and send it to us.

Here is an explanation of the different styles of Home Loans available

Unsecured Personal Loan

This is simply a Loan that doesn’t involve the car itself. The Lender simply lends you the money and you can do with it as you wish. In this instance buy a car. The Lender has no ownership of the vehicle and can not take the vehicle if you do not make payments.

Secured car Loans

There are a variety of these, but in all instances, they are entitled to come and repossess your car if you fall behind on the payments. Essentially the car is theirs until you have finished paying for it.
Lets look at the most common.

Chattel Mortgage

This is where a customer owns the car from the outset and their loan agreement is secured by the vehicle.

Commercial Hire Purchase

With this type of finance, a client will hire and use the asset until the last payment. When they make the final instalment, title of the asset transfers to the customer.

Asset Finance

Asset finance is primarily tailored towards self-employed clients, small business owners, and contractors. In essence ABN holders. It enables customers to purchase the equipment they need to run their business. Cars that are utilised for work such as utes for tradesmen can be financed and can include add-ons such as signage and roof racks. It can also be used for Trucks and other machinery. At the moment the government has enabled this to be offered at a Discount rate and it is very effective way to get a Tax Deduction.

Finance Lease

The financier owns the vehicle, however they would normally bear the risk of disposal of the asset at the end of lease. It is closer to renting than buying. Normally there is a balloon payment left at the end. This means you haven’t paid the vehicle off over the period of the lease and if you wish to keep the vehicle you will need to pay the balance left owing. Be very clear what your obligations are in this regard, when you take out a Lease arrangement. Many have obligations in having to pay the vehicle off. This is effective as a Tax Deduction, but not as popular now that Asset finance is so well priced

Novated Lease

This option is for customers who want to include the asset in their salary package. The financier owns the asset, while the customer and their employer sign a novation agreement to share the responsibilities of the loan. There are many examples of this in the Health Industry and it seems to be a very Tax and cost effective way of operating a vehicle. Just be aware you will still be responsible for the Lease if you leave your employer.

1. Know your numbers. In order to inspire confidence in you as a borrower, it’s important you are familiar with your key financial figures, even if you don’t prepare your own financial statements. This includes current income, net profit and expenditure. Include a profit and loss budget, and, if your business is new or you are starting a new business, make sure your personal credit history is good. Preparing a detailed business plan will inform the lender about your business proposal so that it can assess your application as favourably as possible.
2. Estimate how much funding you need. Are you looking for funds to help with cash flow and operations on a regular basis. Do you need a larger overdraft limit for occasional use? Or do you need one-off funds to open a new branch or purchase additional equipment? Prepare an updated business plan to establish all of the factors in your application, including any partners and strategies.
3. Project your cash flow. You can use this to prepare pro-forma statements, or projections of what your business will make going forward, making adjustments based on past trends. You can use Money Buckets Small Business Budget for Help
4. Provide proof of loan security. A lender will evaluate your risk factors to determine if you and your business are a good investment. Contact Money Buckets with a full picture of your situation, so we can advise you on whether you should offer collateral such as property to secure your loan. Normally a much better Interest rate. But you may be able to use stock or outstanding invoices due as collateral.
   We can also look at the short-term unsecured business loans available. But you will need to know if you’re funding requirements are really long term. We have seen too many short term loans catch people out when the term is too short to manage. This can make a difficult Financial position worse. If you are in a state of desperation, it may be better to look at a Debt Solution Arrangement with Creditors, before the situation gets out of hand. Knowing your financial situation and Budgeting is key.
5. Ask questions. Money Buckets will shop around on your behalf to find out what products are on offer. Money Buckets will also check all the fees to make sure the total cost of the loan is used for comparison.

• Personal Loans - Some Things to Think About