Business finance, explained.

Usually not. The comparison rate requirement under the National Credit Code applies to advertising for fixed-term credit taken out mainly for personal, domestic or household purposes - not commercial finance. For business loans, equipment finance and similar products, the loan-o team compares the full loan structure - rate, fees, repayments and total cost - instead of relying on a single number.

With a chattel mortgage, your business owns the equipment from day one and the lender holds it as security until the loan is repaid. With a lease, the financier owns the asset and you pay to use it, with options to return, re-lease or buy it at the end of the term. The right choice usually comes down to how you want the asset to sit on your balance sheet and your tax position - worth discussing with your accountant.

Advertised rates are typically the best-case rate for borrowers who fit a lender's ideal profile - based on time trading, credit history, asset type and loan-to-value ratio. If your business sits outside that profile with one lender, it may still be a strong fit for another. Comparing your scenario across multiple lenders is how you find the rate that actually applies to you, not just the one in the ad.

In the first two years of trading, lenders generally look at your ABN registration date, GST registration and turnover, trading history (even if short), and the director's personal credit file and assets. Some lenders specialise in newer businesses and weigh these factors differently, which is why matching a new business to the right lender matters more than chasing the lowest rate.

Ask how many lenders they compare your scenario against, how they're paid, and what your options are if your circumstances change after settlement - for example, paying out early or refinancing. A broker working for you, not just a lender, should be able to answer all three clearly.

Some lenders can structure repayments to match when income actually arrives - for example, lower repayments during off-season months for tourism, agriculture or seasonal trades, with larger payments when cash flow is strongest. This is different to a standard flat monthly repayment and can make finance considerably easier to manage for businesses with predictable seasonal cycles.