For professional riders in Australia, owning a reliable horse float is crucial. Whether youâre competing at prestigious events, training horses, or running a riding school, a quality horse float ensures the safe and comfortable transportation of your horses. However, purchasing a high-quality float can be a significant investment. Fortunately, horse float finance options are available to help professional riders spread the cost over time, making this essential asset more accessible.
Financing Options for Professional Riders
When it comes to financing a horse float, professional riders in Australia have several options to choose from. Depending on your needs, financial situation, and long-term goals, there are various financing products that may suit you best.
1. Secured Loans
A popular option for financing a horse float is a secured loan. In this case, the horse float itself serves as collateral for the loan. Because the lender has security in the form of the asset, secured loans typically offer lower interest rates than unsecured loans. This can make secured loans an attractive option for professional riders looking to get the best deal on their horse float purchase.
2. Hire Purchase Agreements
Another option available is hire purchase, where you "rent" the horse float until the full price is paid. This can be an appealing choice for professional riders who need the float immediately but are not in a position to pay the entire cost upfront. While hire purchase can come with higher interest rates, it offers flexibility, allowing you to make manageable monthly payments until the float is fully paid off and owned outright.
3. Chattel Mortgages
For riders operating a business, a chattel mortgage may be the ideal financing solution. This option allows you to use the horse float as security for the loan, while also offering significant tax benefits. For instance, if youâre registered for GST, you may be able to claim the GST back on your purchase, as well as depreciate the float for tax purposes. This can reduce the overall cost of financing the float.
Key Considerations When Financing a Horse Float
When considering horse float finance, there are a few key factors that professional riders should take into account:
1. Interest Rates and Loan Fees
Interest rates can vary depending on the type of loan and the lender you choose. Itâs essential to compare the rates across different lenders to ensure you are getting the most competitive offer. Be sure to also account for any additional fees that may apply, such as application fees or early repayment penalties.
2. Loan Term and Repayment Schedule
The term of the loan will determine how long you have to repay it, and this will directly impact your monthly repayments. A longer loan term typically means lower monthly payments, but you may end up paying more in interest over time. A shorter loan term may save you money on interest, but could result in higher monthly repayments. Consider your financial situation and cash flow to choose a loan term that works best for you.
3. Tax Implications
For professional riders operating a business, a chattel mortgage can offer substantial tax benefits, including GST claims and depreciation deductions. Understanding these benefits with the help of a financial adviser or accountant can make a significant difference in your overall costs.
Why Work With a Broker?
While applying directly to banks and lenders is a common route for financing, professional riders may benefit from working with a finance broker. Brokers have access to a broad range of lenders and financing options, which can help ensure you get the best terms for your loan. They can assist in comparing different loan offers, saving you time and effort during the application process.
Brokers also understand the unique needs of professional riders and can help you find a loan that matches your financial situation. They work on your behalf, presenting your application to lenders most likely to approve it, and can even help with negotiating better interest rates or loan terms.
Conclusion
Horse float finance is a valuable tool for professional riders in Australia, allowing you to purchase the float you need without the upfront cost. With various financing options availableâsuch as secured loans, hire purchase agreements, and chattel mortgagesâthere is a solution for every rider. By considering interest rates, loan terms, and potential tax benefits, you can make an informed decision. Additionally, working with a finance broker can help streamline the process and ensure you secure the most favorable loan terms to support your business and riding career.
Â
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.
