Commercial fishing operators have a number of options for financing investment in major equipment.
The range of commercial finance products available include:
- Chattel Mortgage
- Equipment Leasing
- Commercial Hire Purchase (CHP)
Each features a different combination of elements in regard to the treatment of GST and tax deductions, balance sheet approach and suitability for either a cash or accruals accounting method. It is strongly advised to consult with your accountant in making the decision as to which finance product is best suited to your business.
The similarities across finance products include:
- Fixed interest rate so you can work towards financial goals with a degree of certainty.
- Fixed monthly payments which should be tailored to suit your cash flow.
- Fixed loan term that should be negotiated with the lender to suit your medium to long term projections.
Commercial fishing equipment is a highly specialised and in some cases niche market. Many banks and finance companies are more used to working with more popular and commonly found types of business and industrial equipment. To ensure you receive the best support in sourcing your finance, using the services of a specialist finance broker is definitely worth considering.
A professional finance broker with specific expertise in equipment finance will have the wide lending panel that offers the best finance deals for your sector. Your broker should be totally independent so you know they will be working in your best interests to not only source the right lender but negotiate the best interest rates and loan terms for your business. This level of service will be particularly beneficial to save you valuable time – you don’t want to forego a fishing session just to contact the bank in regard to finance. Your broker can handle all that while you keep working and earning.