Vehicle & Equipment Finance Quotations
Mortgage Finance Rates
Prepayment Penalties
Spreading Your Borrowings Between Lenders
Structuring PAYE Remuneration in a Tax Effective Manner
Leasing & CHP Differences
Prior Credit or Legal Problems
Finding a Home for Non-Standard Applications

Vehicle & Equipment Finance Quotations

When obtaining quotations for vehicle and equipment finance always ask for the monthly repayment figure (which includes stamp duty) in addition to obtaining the applicable interest rate. It is not uncommon for quotes to be given which do not include stamp duty, which is misleading. On occasions, deliberately incorrect interest rates are quoted which can only be verified by comparing the monthly repayments with a genuine competitive quote.

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Mortgage Finance Rates

When obtaining rates for mortgage finance, it is very important to consider all of the other loan costs including valuation fees, establishment fees, legal costs and any on-going fees that a lender may charge, so that the true cost of the loan can be ascertained.

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Prepayment Penalties

With all types of finance you should enquire about what penalties for prepayment will apply. These penalties can be significant, particularly with mortgage finance where fixed rate loans are involved.

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Spreading Your Borrowings Between Lenders

Many borrowers only use their current banker for all of their finance requirements and consequently, have all of their assets secured by one lender. It is a very good idea to spread your borrowings between different lenders, which allows for competition on interest rates and flexibility in the expansion of your business.

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Structuring PAYE Remuneration in a Tax Effective Manner

With income tax legislation frequently changing, many PAYE employees are utilising the services of consultants to structure their remuneration in a tax effective manner. This includes the use of novated leases for motor vehicle purchases which can be very beneficial.

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Leasing & CHP Differences

There can be a significant difference in the benefit to a borrower in selecting either Leasing or Commercial Hire Purchase (CHP) as the method of acquiring vehicles and plant and equipment.
We have a computer program which checks the best method of financing given the type of equipment, term, residual etc. We are pleased to provide this service on request.

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Prior Credit or Legal Problems

If applicants for loans have had any credit problems or legal action against them in the past, it is best to advise the lender of this circumstance together with an explanation rather than to wait until the situation is revealed through their credit enquiries.

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Finding a Home for Non-Standard Applications

Lenders have certain types of goods and certain types of properties that they feel uncomfortable in lending against. They therefore, will either charge a higher interest rate or reject the application outright. Do not be discouraged if this occurs as each proposal usually "can find a home" at reasonable terms.
And therefore, you should approach several lenders to get the best deal.

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