Boat Loans For Business
Aussie Boat Loans offers a range of commercial boat finance solutions for individuals and companies seeking finance for marine vessels to be used in a business.
We offer competitive boat loans for businesses that are available Australia wide.
There are quite a few different commercial boat finance options available, so it is crucial to get the right loan setup for your business. If you have questions about commercial boat loans, please call 1300 889 669 to speak to one of our finance consultants.
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Commercial Boat Loan Options
Browse through the details about each option below to find out which finance option will best suit your businesses’ needs.
Chattel Mortgage
A Chattel Mortgage (also known as a Bill of Sale or Equipment Loan) boat loan is a loan agreement where the funds are borrowed to purchase equipment for commercial purposes, and a charge is taken over the goods that are financed.
Advantages of Chattel Mortgage:
- The purchased boat will be owned by the borrower
- Can be 100% funded or equity (e.g. deposit or trade) can be contributed
- A balloon payment can be included
- The tax deduction is generally the interest on the facility and depreciation
- If registered for GST, the GST on the purchase price can usually be claimed
Hire Purchase
A Hire Purchase (also known as Offer to Hire) is an agreement which sets out that during the hire period (term) the Financier owns the boat and the hirer pays regular instalments, with ownership of the asset automatically passing to the hirer once the final payment is made.
Advantages of a boat hire purchase:
- Purchased Boat is owned by the Financier but is transferred to the hirer at the end of the term
- Can be 100% funded or equity (e.g. deposit or trade) can be contributed
- A balloon payment can be included
- The tax deduction is generally the interest on the facility and depreciation
- If registered for GST, the GST on the purchase price may be claimed
- Depending on which accounting system (cash or accrual) is utilised, this will affect how the GST can be claimed. We also recommend that independent accounting advice should be sort.
Boat Finance Lease
A marine finance lease is an arrangement for financing the vessel where the financier retains the title and the asset is leased to the borrower, for an agreed term and rental amount. Residual value is set to reflect the boat's value at the end of the term.
Advantages of a lease:
- Equipment is owned by the Financier
- 100% funding with no equity allowed (e.g. no deposit)
- Residual value based on tax guidelines
- Repayments are generally tax-deductible in full
- Whilst there is no guarantee of ownership, the usual case is the Financier will offer the equipment for sale at the end of the term at the residual value.
Rental
A Rental (also known as an Operating Lease) is an arrangement for financing equipment (such as a boat) where the Financier retains the title and the asset is rented to the borrower, for an agreed term and rental amount.
Advantages of a rental:
- Equipment is owned by the Financier
- 100% funding with no equity allowed (e.g. no deposit)
- Repayments are generally tax-deductible in full
- No guarantee of ownership. The Financier may offer to sell the equipment at the end of the term, the equipment may be returned to the Financier or the Financier may agree to refinance the equipment.
Call one of our commercial boat finance specialists on 1300 889 669 to discuss your needs.
