Now you have decided which asset to purchase, the next question to ask is:

How will the asset be used?

For Business Use (Commercial) or Personal Use (Consumer)?

This will determine what type of finance you need. You may need to speak with an accountant to discuss the percentage of business use of the asset.

If the asset will be used for more than 51% Business Use, you may be eligible for a Commercial Loan, depending on your client profile.

If the asset will be used for Personal Use only, you will need a Consumer Loan.

Since your Client Profile also has an impact on the Finance Type, you need to think about who will be the entity borrowing the money.

If you are a company with a Trust or a Sole Trader with an ABN, then you qualify for Business Use and can therefore apply for a Commercial Loan. You may also satisfy the criteria for an Express Policy. See Client Profiles and Policies.

If you are an individual without an ABN but can still verify business use of the asset via an accountant’s letter or employment letter (for example, a real estate agent, or a tradesperson with a ute), then you can apply for a Commercial Loan however servicing will be assessed by the lender using verified income so you will not be eligible for an Express policy, rather you will fit into a Standard Policy.

If you are an individual that uses the asset for Personal Use, then you need a Consumer Loan which is also subject to servicing assessment under a Standard Policy.