Anyloan Australia :: Articles

Knowing these loan finance options will make borrowing easier and save you money

Knowing these loan finance options will make borrowing easier and save you money

Knowing these 6 types of loan finance options will make it easier for you do deal with brokers and lenders.
Once you go from asking for a loan to asking for a "novated lease with a 45% balloon payment" you will be in a far better position to negotiate your loan with confidence.

Do not say you need a loan, it’s an indicator that you don’t know what you are doing.  It also shows you don’t know much about finance.   There is no such thing as a loan.  Yes, a lender will provide you with a loan but that does not describe the type of loan you will need.

Imagine this scenario: instead of saying I want to finance it, you say  I am going to get a novated lease with a balloon of 45%, with a term of 36 months and I need a repurchase guarantee of value at 36 months from you.  Now that’s posture.

Farm Equipment Finance and Loans
Looking for the best way to finance your Farm Equipment? Well, look no further! Simply submit our 2-minute business loan enquiry form ... and we'll help get you qualified for the best rate Plant and Equipment loan available from our national panel of independent business finance brokers. We also have access to the best rates and options for Business Cashflow finance for Farmers.
From my own experience there is nothing worse than a salesperson using buzz words when talking to you and you not knowing what they mean.   It is a way to intimidate and dominate you.  This article is to give you an overview of the various types of loans in the market and what you do with them.

Types of loans

  • Hire Purchase 
  • Chattel Mortgage
  • Finance Lease
  • Novated lease
  • Unsecured personal loan
  • Secured Loan

Personal loan.

Independent professional advice and tax advise is strongly recommend prior to entering into a personal loan.   Make it a rule to contact your Financial Advisor.   A Mortgage Broker can introduce you to a financial lending and leasing organisation.

Hire Purchase

The finance company holds the title of the object of the loan.    The title passes back to you once the payments are made on the Hire Purchase Loan.

Chattel Mortgage

The goods are owned by you with Chattel Mortgage loan.   You retain title in a Chattel Mortgage with the lender registered a claim to the title under a bill of sale.

Finance Lease

The lender rents back the good to you and you accept the risk of the residual value; ie disposing of the goods at the end of the Finance lease.   The difference between a Hire Purchase and a Finance lease is the Hire purchase will have a lot more flexibility than a Finance Lease.

Novated Lease

As part of salary packaging you take out a lease for a car with the lender.  You and your employer sign a novated agreement where the employer agrees to pay the lease out of your salary.

Balloon payments

This is a deferred payment.  It is also called a reverse deposit.  You pay the deposit at the end not the front of the mortgage.  You borrow $20,000 you pay interest and principal on monthly basis on $15,000.   The last payment you make is $5,000.  The idea is that you are able to sell the goods for $5,000 and keep up to date.  Be very careful of using this without advice.

Secured Personal Loan

You borrow a sum of money from a lender.  The lender takes an asset as security.  It may not necessary be the object you are buying for the secured personal loan.

Unsecured personal Loan

This is a loan that is made to you with no associated security attached to it.  It is based on a risk assessment of the lender on your ability to repay.

From this short list there are hundreds of variations of the types of loans mentioned above.  I would strongly suggest that you do more research on the loans types and  the various uses of loan types.

A tip is to not to make distinctions on subcategories of loans.  Stay focused on the type of loan first.

An example of this would be: Truck Finance lease, Car Finance lease, Equipment Finance Lease, Property Finance leases.  Each may have variations so it is important you understand the key elements of a Finance Loan.  This will make it easier for you in looking at variations and some subtle elements of loans on offer.

Remember you are in an area of legal minefields and not always playing on a level playing field.  Seek professional advice before you sign anything.

Compare Public Liability Insurance Quotes
If you are renewing your public liability insurance in the near future,, it might be well worth your while to shop around. Or, better still, let us do it for you. Much has changed in the public liability insurance market following recent events and there are many new policies and special deals on the market that were not available even one year ago. A single 3-minute online enquiry will give you access to multiple quotes from multiple insurers via our national broker panel, guaranteed to save you time and money!!. So, why not give us a go … free service, no obligation!
Free Super Advice
If you're thinking about rolling over or consolidating your super accounts, need investment advice, help setting up or administering a self-managed fund, we can help save you time and money. Our national panel of Superannuation Specialists are standing by, ready for your questions!


Finance Articles

Double your Home Loan Deposit in half the time Double your Home Loan Deposit in half the time
Saving is never an easy thing to do and saving for a deposit on a home is twice as hard. However, with the right strategy in place, your savings can grow and grow, cutting the waiting time to your own home in half. - read more
Why Payday Lending Enhances Consumer Welfare Why Payday Lending Enhances Consumer Welfare
Today, We’ll defy the critics and demonstrate why consumer welfare is enhanced within a competitive payday-lending environment. - read more
5 Credit Killers 5 Credit Killers
A good credit score speaks volumes about your financial habits. It's the evidence most creditors need to evaluate your credit worthiness. - read more
Loan Finance: How to Shop Around Without Damaging Your Credit Loan Finance: How to Shop Around Without Damaging Your Credit
If you are considering taking out a loan, you wouldn’t go out of your way to make it harder on yourself to get approved or to get a good interest rate, would you? Yet many loan applicants would enjoy a considerably better outcome on their loan application if they followed this important rule. - read more
Utilising A Chattel Mortgage for Business Finance Utilising A Chattel Mortgage for Business Finance
A Chattel Mortgage loan is a simple yet effective finance option designed for business plant and equipment purchases. Here are six rules to consider when arranging finance for your business that will ensure that you retain full control over the loan process and save money in the process. - read more
Business Loans: Managing interest rate risks Business Loans: Managing interest rate risks
"I want the protection in the current low interest rate environment but I don't want to be locked in for too long a period" - a commonly heard requirement from business borrowers. - read more
7 things you need to know about a Hire Purchase loan 7 things you need to know about a Hire Purchase loan
There are seven things you should know before you ever think of getting a Hire Purchase loan. Knowing these things will give you control and power in the loan process. Power and control will will save you money - read more
How Credit Card Balance Transfers Can Damage Your Credit Rating How Credit Card Balance Transfers Can Damage Your Credit Rating
Since the banks and finance providers have been castigated for the way they seemingly indiscriminately awarded credit to people who could ill afford it, the chances of being accepted for loans and credit cards have decreased. Concurrently, there is a greater focus on individual's being aware of how credit works and what their financial behaviors means in terms of a credit score and history. - read more
How to freeze the Plastic Debt Dragon in Your Wallet How to freeze the Plastic Debt Dragon in Your Wallet
Are you scared to open your wallet knowing there is a fire snorting dragon lurking in there? You don't need to be afraid of your credit card, you can make it your friend. Here is a plan to choke the dragon and replace it with a friendly furry critter so you can start creating wealth in your life. - read more
Personal Loans And The Consumer Credit Code Personal Loans And The Consumer Credit Code
Understanding your rights as a consumer is essential in dealing with complex issues like personal loans and other finance. Here we reveal, in simple terms, how the Credit Code works for you. - read more

Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO, Andrew Clark, has announced a package of personal finance solutions designed to help... read more
Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers who are seeking loans for amounts of up to $10,000 with minimum security requirements,... read more
Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They say they cold call customers and tell them they have been overcharged... read more
ANZ nets solid profit despite wealth management
Oct 26 :: ANZ banking group has reported a solid full-year result with net profit attributable to shareholders up 6 per cent to nearly $5.7 billion - but with its wealth management division still... read more
Millions lack access to basic financial services
Jun 01 :: Nearly 3 million Australians do not have access to basic financial products such as a credit card, car insurance or even a bank account, according to a private study. The annual... read more
Reserve Bank leaves interest rates steady
Apr 04 :: The board of the Reserve Bank of Australia has left interest rates unchanged at 4.25 per cent at its monthly meeting today, as widely expected.The decision leaves the official cash... read more
Big banks not too profitable: RBA
Feb 25 :: The governor of the Reserve Bank says the Australian banking sector is not too profitable.Appearing before the House of Representatives Standing Committee on Economics, RBA governor... read more
Commonwealth Bank changes ads following ASIC concern
Jan 16 :: The Commonwealth Bank of Australia has agreed to change some of its advertised loan comparison rates after concerns were raised by the Australian Securities and Investments Commission... read more
Inflation fall strengthens case for rate cuts
Dec 06 :: A leading unofficial measure of inflation eased last month due to falling food and fuel prices, strengthening the case for interest rate cuts next year.The TD Securities-Melbourne... read more
Reserve Bank cuts domestic growth outlook
Nov 07 :: The Reserve Bank of Australia (RBA) has cut its forecast for economic growth and inflation in its latest quarterly report card.Europe's ongoing sovereign debt crisis and the stalemate... read more

Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Consumer Credit Code:
An act of Parliament that governs the relationship that exists between borrowers and lenders.


Quick Links: | Compare Loans | Bad Credit Loans | Finance For Self-employed | Low Rates | Free Loan Assessment