With cities becoming increasingly congested, car parking becoming increasingly rare and/or expensive and coronavirus causing many people to ditch public transport, business people are considering purchasing a motorbike rather than a car as their business vehicle.
Motorbikes have long been a choice of vehicle for metro couriers that specialise in document and small package deliveries. Due to the demand for home deliveries brought on by the coronavirus pandemic, some businesses have set up their own delivery services. With small packages including food to deliver, motorbikes can be a practical alternative to a car as a business delivery vehicle.
Motorcycle hire and rental businesses are also eligible for business finance when purchasing new machines for their hire fleet.
Manufacturers offer a range of motorcycle models which are ideal for urban commuting, are easy to find parking for and are much easier on the back pocket at the bowser. The range of smaller bikes and scooters may be worth you checking out if a bike for business is in your sights.
If you are purchasing a motorbike for your work purposes and you have a company structure or operate as a sole trader with an ABN, Jade Bike Loans can source you motorbike business finance. Whether you’re considering one bike or an entire fleet of machines, Jade Bike Loans will source you the best bike finance deal.
Eligible Businesses
A range of business and corporate structures and entities are eligible for business finance, subject to acceptance of individual loan applications by our individual lenders.
- Small businesses
- Sole traders – ABN holder
- SMEs
- Companies
- Large corporations
Business Finance for Motorbikes
Jade Bike Loans offers a comprehensive range of commercial finance products for the purchase of motorbikes for business. These finance facilities differ in regard to suitability to either the cash accounting method or the accruals method; treatment of GST; tax deductibility of the loan elements; balance sheet entry; and depreciation.
Business owners should refer to their accountant as to which commercial finance type is best suited to their business structure and will work with their financial objectives.
Finance Types
Chattel Mortgage
- This is a very popular form of commercial finance as it suits many businesses that use the cash accounting method.
- The lender uses the motorcycle as security against the loan.
- The borrower takes ownership of the bike and is responsible for all ongoing costs.
- GST on the purchase price is claimable on the next BAS.
- GST is not charged or claimable on the monthly repayments.
- GST is charged and claimable on fees and charges.
- Only the interest on the monthly repayments is tax deductible.
- Balloon is optional.
- Depreciation according to ATO guidelines
- No deposit is usually required by the lender, subject to individual circumstances.
Motorcycle Leasing
- An off-balance sheet finance facility where the lender retains ownership and leases the bike back to the borrower.
- The bike appears on the balance sheet of the lender, not the borrower.
- GST is charged and claimable on the lease payments but not the interest component.
- The monthly repayments are tax deductible as an operating expense.
- A residual is optional.
- Depreciation is according to ATO guidelines.
- No deposit is usually required by the lender, subject to individual circumstances.
Commercial Hire Purchase (CHP)
- The lender effectively purchases the bike and hires it back to the borrower.
- The borrower has full use of the bike during the loan term and is responsible for all ongoing costs.
- GST on the purchase price is claimable on the next BAS.
- GST is not charged or claimable on the monthly repayments.
- GST is charged and claimable on fees and charges.
- Only the interest on the monthly repayments is tax deductible.
- Balloon is optional.
- Depreciation according to ATO guidelines
- No deposit is usually required by the lender, subject to individual circumstances.
ABN Only Bike Loans
For businesses that have an ABN but very little documentation, an ABN Bike Loan may be a possibility. This is a type of Low Docs loan.
- Current ABN is essential.
- Proof of identification is essential.
- GST status must be advised. If an ABN holder is not registered for GST, additional conditions may be applied by the lender.
- Where available, financial information such as BAS statements, bank statements and accounts records should be provided.
- Newly acquired ABN holders may be required to pay a deposit if no additional security is available.
- ABN-only loans can apply to Chattel Mortgage, Leasing and CHP finance.
All Jade Bike Finance Deals include:-
- Our cheap and best interest rates fixed for the term of the loan
- Fixed Loan Term
- Fixed Monthly Repayments
- Terms and conditions of the loan are individually negotiated by your Jade consultant to best meet your requirements.
If you’re a business entity that needs to purchase one bike for work purposes or an entire fleet for your operation, Jade Bike Loans will source you a quote for your choice of commercial finance facilities.
To discuss cheap bike business finance speak with a Jade Bike Loans consultant at 1300 000 003
DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.
