There is no better feeling than putting in the hard yards as a sole trader to earn your income.
but there is no worse feeling than finance companies shying away from your car finance application because you’re self-employed.
Need help accessing the finance you need to get a car loan as a self-employed Aussie?
Don’t worry; Finance One specialises in car finance for ABN holders, sole traders, and those with poor credit. We show you how we can help you get the wheels in motion for car finance!
Apply Online NowWhat are my Car Loan options as an ABN holder?
There are many options for vehicle finance as a self-employed Australian, you need to know where to go — and, more importantly, do your research before you apply. Your finance options may include the following:
Low doc car loans
A low doc car loan sounds appealing, thanks to the name implying that applicants will need low documentation to apply. However, while the need to rustle up fewer business activity statements could be a major pro of low doc car loans, car loan lenders who offer these loans will generally require a higher deposit to secure the loan. Low doc loan lenders also commonly charge high interest rates to offset the inability to assess the application properly and will often come with additional fees.
Commercial hire purchase agreement
If it’s a work vehicle for business use that you’re looking for, then a commercial hire purchase agreement is one of the finance products available to you. Similar to a finance lease or operating lease, a commercial hire purchase agreement works by having a financier purchase the car on your business’s behalf and then hiring it back to your business over a set period of time.
Chattel mortgage or secured car loan
Similar to other forms of secured lending, a chattel mortgage or secured car loan uses the equipment or vehicle you’re purchasing as collateral against the loan amount. Monthly repayments are made against the loan until you arrive at the end of your loan term.
Did you know
holding a comprehensive car insurance policy is a common requirement for secured car loans?
Why are Car Loans for ABN holders hard to get?
Applying for any finance will usually mean that the credit provider will assess your financial position to ensure that they can confidently lend you the funds you need. This includes looking at your employment, income, and, of course, your credit file. Employees often take for granted that they have a signed employment agreement and receive consistent, regular pay, complete with payslips.
How does a Finance One ABN Car Loan work?
If your small business needs a new car, an ABN car loan through Finance One could be the key.
Eligibility
If you need a new vehicle for business purposes, but are concerned about how being a sole trader or having bad credit may impact your eligibility, you’ll be relieved to know that Finance One offers business car loans to applicants who are:
- At least 21 years old.
- Receive regular income under an ABN.
- Want to borrow between $8,000 to $150,000.
Loan amounts
As mentioned above, Finance One offers ABN car loans to holders looking to borrow between $8,000 and $150,000. It’s important to note that loans between $75,000 and $150,000 must be property-backed.
Loan terms
At Finance One, your business car loan term will range from three to seven years, depending on what’s best for you and your business.
Flexible repayment options
Most lenders will lock you into monthly repayments, with no flexibility for your repayments to suit your cash flow. At Finance One, we offer loan repayments weekly, fortnightly or monthly.
Documentation required
Low doc car loans may not require much paperwork, but they can leave you with a high-interest, inflexible car loan that you’re stuck with. We take a different approach at Finance One — while we may require slightly more documentation than a low doc car loan, it is to ensure that we are looking at your whole financial situation so that we can confidently provide you with the money you need. Understanding your full position also assists us in arriving at the most affordable interest rate we can for you.
Tax breaks are sometimes available on a business car loan
As a business owner, you’ll likely search for any tax-deductible cost. One of the benefits of taking out a business car loan could be the tax deduction it provides to your business. Your interest payments towards a business car loan (or any other loan for business purposes) are usually tax deductible!
Finance One can help sole traders access business vehicle finance
Don’t let the stress of applying for car finance through finance brokers become a roadblock to getting the vehicle you need. At Finance One, we look at your entire situation and consider your circumstances — not just your balance sheet.
As specialist lenders, we pride ourselves on providing everyday business owners with the finance they need to keep their business motoring. If you’re a business owner or ABN holder searching for a car loan for business purposes but are worried about how your self-employment or credit position may impact your chances of approval, contact our friendly team to ask more about how ABN car finance could work for you.
Apply Online NowNormal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
