Equipment Finance
Our team of experienced Equipment Finance Specialists can structure a variety of deals - no matter how large, complex or specialised the equipment requirements are:
A Finance Lease provides up to 100% finance for the acquisition of equipment to be used in your business.
Finance Lease offerings are essentially a rental agreement where the Financier owns the equipment, which the business then leases for an agreed term and rental amount. The business indemnifies us for the residual value at the end of the lease term.
Under the terms of a finance lease, the party taking out the lease normally has no option or right to purchase the equipment leased either during, or at the end of the agreement. However, in practice, most financiers will consider an offer to purchase their equipment for the residual value at the end of the lease term.
Features
With our Finance Lease offering:
- Payments can be customised to business cash flow
- Irregular or seasonal payment plans are available
- Payments are subject to stamp duty and GST
What are the benefits?
Finance Leasing provides:
- Up to 100% financing so working capital is preserved
- Flexible payment arrangements to maximise the cash flow of the business
- Ability to claim rental payments as a full tax deduction, where the equipment is used to generate assessable income
An Operating Lease is an agreement to rent equipment for use in business for a fixed period of time. It can be an efficient and cost effective financing strategy if vehicles and equipment need regular upgrading, or if renting is more suitable than owning the asset.
At the end of the lease period, the equipment is returned to the financier, subject to return conditions, without obligation for the residual value.
Features
With our Operating Lease service:
- Payments can be customised to suit business cash flow
- Lease payments may be made off-the-balance sheet, providing scope to improve business performance ratios such as Return on Assets
- Rentals are subject to stamp duty and GST
What are the benefits?
An Operating Lease:
- Provides 100% financing so working capital is preserved
- Guards against obsolete equipment and offers the flexibility to respond to changing market demands
- Provides access to the most modern equipment and technology without the associated risks of ownership
- Takes away the concern of disposing of equipment with a weak re-sale market
- Offers flexible payment arrangements
- Allows the business to claim the full amount of the rentals as a tax deduction (provided the equipment is used to generate assessable income)
If your business's aim is to ultimately own the vehicle or equipment you want to hire, a Hire Purchase Agreement may be a suitable option.
A Hire Purchase Agreement is an arrangement to purchase equipment subject to payment terms. During the term of the agreement, the financier owns the vehicle, plant or equipment. Ownership is automatically transferred to your business when it makes the final payment. The choice is also available to purchase the equipment at any time during the term of the agreement.
Deposits are optional but generally not required. Stamp duty is payable on repayments in most States and Territories. Hire Purchase Agreements are subject to GST. Where the terms and charges are disclosed in the Hire Purchase Agreement, GST is calculated on the cost of the equipment less the Input Tax credit applicable to the purchase. Repayments are not subject to GST.
Features
- Repayments can be tailored to suit business cash flow
- Irregular and seasonal repayment plans are available
What are the benefits?
- Ownership automatically transfers to the hire purchaser with the final repayment
- Equipment can be purchased at any time during the term of the agreement
- No need for a deposit
- Flexible repayment arrangements
- The interest component of the repayments, and the depreciation on the equipment can be claimed as tax deductions provided the equipment is used to generate assessable income
An Equipment Loan (often referred to as a Chattel Mortgage or Bill of Sale) is a loan agreement where funds are borrowed to purchase equipment. Security for the loan is provided by way of a mortgage to the Financier over the equipment financed.
Features
- There is no need for a deposit
- Choice of flexible payment arrangements
- Neither the borrowing or the repayments attract GST
What are the benefits?
- Ownership remains with the borrower throughout the term of the loan (however, the equipment is mortgaged to the Financier)
- The loan can be repaid at any time during the term of the agreement
- The interest component of the payments and the depreciation on the equipment are generally tax deductible, provided the equipment is used to generate assessable income
Technology and Healthcare Finance
Technology and Healthcare Equipment is constantly being upgraded with new features and benefits. Keeping pace with the changes can be an administrative challenge, as well as an inefficient use of valuable capital. To make it easier to gain access to the latest Technology and Healthcare Equipment, we can offer you a range of managed financial solutions to finance new and existing equipment.
Features
- Select the Technology or Healthcare Equipment that suits your business needs
- We provide an estimate of the monthly repayments for the period of time the Technology or Healthcare Equipment is needed
- At the end of the financing period, the equipment can be returned and replaced, or kept under ongoing arrangements, or purchased
What are the benefits?
- Competitive funding rates
- Cost-effective