At Bfinanced We can arrange finance for Motor Vehicles and equipment finance for Business operators.
This type of lending uses the item being purchased as security. Generally the loan is established with a set monthly payment and a term up to 5 years.
Repayments can be structured to meet the needs of the clients. The loan does not have to be repaid in full over 5 years; a residual loan amount or balloon payment can be structured which may be rolled over at the end of the term.
Purchase motor vehicle – cost $50,000, Term 5 years, residual 30% ($15,000). Repayments are calculated on$35,000 over 5 years and at the end of 5 years $15,000 is the balance owing. This would need to be repaid or rolled over for another term.