What are the loan types available with asset finance?
a.) Novated lease -This is a type of lease where you can include a vehicle in your salary package, the lender owns the asset and you and your employer sign an agreement to share the responsibilities for the loan.
b.) Chattel mortgage -A Chattel mortgage is where you own the asset from the beginning and your loan agreement is secured by the asset you own.
c.) Finance lease -This is a contract that allows you to rent a selected piece of equipment for an agreed time frame. You make rental payments to your lender and you bear the risk of disposal at the end of the lease.
d.) Hire purchase -A hire purchase loan involves you hiring and using the asset until the last payment where the title of the asset transfers to you.