Experts in Equipment Finance
Our team provides advice for all shapes and sizes of asset and equipment finance. As your partner, we take the time to understand your business and financial situation to provide personalised lending advice.
Options for funding assets may include a chattel mortgage, commercial hire purchase, finance lease and operating lease. Generally, 100% of the purchase price can be funded and secured by the asset with a fixed term.
Asset Finance Options
There are varied options for funding Assets. All generally allow 100% of the purchase price to be funded (secured by the asset itself) with a fixed term.
- FINANCE TYPE
- Potential Benefit
- Chattel Mortgage
The customer takes ownership of the asset.
The financier takes their interest over it by way of mortgage.
Once the contract is completed, the security interest is removed, giving the customer a clear title to the asset.
Businesses registered for GST on a cash basis may claim GST in full in their next Activity Statement.
Gives certainty of ownership and the ability to contribute a deposit.
- Commercial Hire Purchase
The financier purchases the asset on behalf of the customer and then hires it back over an agreed term.
After the residual is paid, the customer assumes ownership.
Gives some certainty of ownership at the end, but is generally less tax effective than a Chattel Mortgage option.
Currently not a widespread product option.
- Finance Lease
The financier retains actual ownership of the asset with an option for the customer to purchase at the end of the term.
The customer only finances the purchase, excluding GST.
A good option when updating equipment or vehicles regularly.
There may be legal or accounting reasons for not requiring ownership of the asset.
- Operating Lease
You will not own the asset.
Commonly referred to as being “Off Balance Sheet”, you can simply return the goods at the end of the term.
Usually, this structure is delivered at a higher cost.
A good option when you are turning over equipment regularly, need flexibility and want one simple repayment.
- Tax Considerations
The taxation treatments associated with ownership of equipment can be unique to your circumstances, and we can support you in getting accounting advice. For example, this may assess whether the benefits associated with asset ownership of equipment outweigh any benefits of a total deduction of payments through leasing.
How We Work
Our equipment finance advisory services are remunerated on a commission or fee basis as outlined in our Credit Guide. The Credit Guide is an important document that outlines how we provide advice to you.