For many Australians, purchasing a horse float is an essential investment for safely transporting horses to competitions, training sessions, and events. However, the cost of a new or even second-hand horse float can be significant, making financing an appealing option. Whether youâre a professional equestrian, a business owner, or simply a horse enthusiast, financing a horse float offers several key benefits that can ease the financial burden while providing the flexibility to secure the right float for your needs.
1. Preserve Cash Flow
One of the primary benefits of financing a horse float is the ability to preserve your cash flow. Instead of paying the full cost upfront, you can spread the expense over a set period through manageable monthly repayments. This allows you to keep working capital available for other aspects of your business or personal finances, such as covering training expenses, maintaining equipment, or investing in other opportunities.
For business owners, particularly those involved in equestrian enterprises, financing enables you to invest in essential equipment without draining your businessâs cash reserves. This preserves liquidity, which is especially helpful in the often-fluctuating world of equestrian sports, where income may vary from season to season.
2. Flexible Financing Options
In Australia, there are various financing options available for horse floats, offering flexibility in terms of repayment and structure. Common options include secured loans, hire purchases, and chattel mortgages. Secured loans use the float as collateral, typically offering lower interest rates. Hire purchases allow you to take immediate possession of the float, with ownership transferring to you after completing the agreed-upon payments. Chattel mortgages, ideal for business owners, allow for immediate ownership while offering tax advantages like GST claims and depreciation benefits.
With these financing plans, you can choose the terms and repayment schedule that best align with your financial situation. Whether youâre looking for shorter-term loans with higher repayments or longer-term loans with smaller payments, financing options cater to a wide range of preferences.
3. Lower Interest Rates
When you finance a horse float through a secured loan, you can often access lower interest rates compared to unsecured loans. This is because the float itself serves as collateral, which reduces the risk for the lender. Lower interest rates mean you will pay less in total over the life of the loan, making it a more affordable option in the long run.
Additionally, because you can lock in a fixed interest rate, you have the certainty of knowing exactly what your repayments will be, allowing you to plan your finances effectively. For trainers and business owners, this can help keep costs predictable and manageable over time.
4. Quick Access to a Float
Financing a horse float allows you to secure the float you need without waiting to save up the full purchase price. Whether you need a new float for expanding your business or a reliable model for everyday transport, financing provides quick access to the right equipment. This is particularly important for businesses or professional riders who rely on their horse floats for transporting horses to events, training sessions, or competitions.
The faster access to a float ensures that you donât miss important opportunities, whether it's a major competition or a new business venture that requires transportation of horses.
5. Tax Benefits for Businesses
For business owners, financing a horse float, particularly through a chattel mortgage, can provide valuable tax advantages. The Australian tax system allows businesses to claim depreciation on purchased assets, such as a horse float, over time. This can reduce your taxable income and lower your overall tax burden. Additionally, businesses can claim the GST paid on the purchase of the float, which can provide significant savings.
These tax benefits make financing a horse float an even more appealing option for equestrian businesses, as it allows them to maximize their financial advantages while maintaining their cash flow.
6. Build or Improve Credit Score
If you opt for financing and keep up with your repayments, you have the opportunity to build or improve your credit score. Consistently making on-time payments on your horse float loan can demonstrate your financial responsibility to future lenders, which may help you secure more favorable terms on future loans or financing agreements.
On the other hand, failing to make payments on time can negatively impact your credit score, so it's important to ensure that financing a horse float aligns with your financial capacity to make timely repayments.
7. Protect Your Businessâs Finances
For horse trainers and other equestrian business owners, financing a horse float is an effective way to protect your finances. Instead of tying up a significant portion of your savings or capital in purchasing the float, you can spread the costs over time, which reduces the immediate financial strain. This can be especially useful in times when cash flow may be inconsistent, allowing you to continue operating your business without financial stress.
Conclusion
Financing a horse float in Australia offers a range of benefits, including the preservation of cash flow, lower interest rates, and the ability to secure quick access to the right float. Whether you're a horse trainer, professional equestrian, or business owner, financing provides a flexible and affordable solution for acquiring the essential equipment needed to transport horses safely. With various financing options, tax benefits for businesses, and the potential to build your credit score, financing a horse float is a smart financial choice that can help support your goals and grow your equestrian business.
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DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
