Types of Products Available With eCarz Group and Asset Finance Exchange
In today’s diverse financial landscape, understanding the various types of loans available can empower individuals and businesses to make informed decisions. From specialised equipment finance that supports growth in industries like agriculture to personal loans that help navigate everyday expenses, each loan type serves a unique purpose. Unsecured business lending offers flexibility for entrepreneurs, while car and leisure finance opens the door to new adventures on the road or water. Additionally, novated leases present a compelling option for employees looking to benefit from vehicle financing. In this blog, we’ll explore these loan options in detail, helping you find the right financial solution for your needs.
Types of Loans
Equipment Finance
Purpose: Specifically for purchasing or leasing equipment.
How It Works: The lender provides funds to acquire equipment, which acts as collateral. Repayments can be structured over time, typically aligning with the expected income from the equipment.
Agriculture Loans
Purpose: Designed for farmers or agricultural businesses to finance various farming activities.
How It Works: Can include loans for purchasing land, equipment, livestock, or funding operational costs like seeds and fertilizers. Terms may vary based on the seasonality of the agricultural business.
Unsecured Business Lending
Purpose: Provides funds for business expenses without requiring collateral.
How It Works: Often based on the business’s creditworthiness, cash flow, and revenue. These loans can be used for various purposes, such as inventory purchase, marketing, or operational expenses. Interest rates may be higher due to the lack of collateral.
Car and Leisure Finance
Purpose: To finance the purchase of vehicles or leisure equipment (like boats or RVs).
How It Works: Can involve loans or leases. In a loan, the vehicle is owned outright after repayment; in a lease, you pay for the use of the vehicle over a set period. Terms typically depend on the value and type of vehicle.
Personal Loans
Purpose: For personal expenses, such as debt consolidation, home improvement, or unexpected expenses.
How It Works: Can be secured (backed by collateral) or unsecured (based on creditworthiness). Terms, interest rates, and repayment periods vary widely.
Novated Leases
Purpose: A specific type of vehicle finance arrangement often used as an employee benefit.
How It Works: Involves three parties: the employee, the employer, and the finance company. The employer takes on the lease payments and deducts them from the employee’s pre-tax salary, potentially offering tax benefits.