Every business out there is different. That means operating in a diverse range of sectors, servicing a broad selection of clientele – both B2B and B2C, and having differing needs for equipment, machinery, electronic devices, appliances, and vehicles.
Depending on your equipment finance needs, our expert commercial finance consultants are on hand to help you navigate the process with as little disruption to your working day as possible. You can choose from the significant tax and GST benefits of a chattel mortgage, with its cost-effective interest rates and flexible repayment periods running between one and seven years. Your business claims depreciation and you can use a trade-in, a cash deposit, opt for 100% equipment finance, and use a residual amount to manage monthly costs. Your business can also claim back all the GST on equipment as soon as you file a BAS. There’s zero GST on regular repayments or any residual amount, and interest on repayments is 100% tax-deductible
If you’d rather outsource disposal, maintenance, and ownership risks, you might want to consider an operating lease, which runs for anything between twelve and sixty months and offers two different end of lease options. You have no obligation to buy when the lease ends, but you can choose to make an offer for the equipment at that time. You can also choose to return the equipment and source new finance if you’d like to upgrade again. If you’re buying serviceable equipment like vehicles or machinery, operating leases give you the option of bundling costs like registration, servicing, and maintenance into the repayment structure.
Finance leases are slightly different. With a finance lease, the lender buys the equipment you need on your behalf, and your business makes fixed payments during an agreed term (between one and five years). The main difference between a finance and operating lease is there’s a residual and therefore, an obligation to buy when the finance lease ends. That means every payment your business makes builds equity in the asset being financed.
With both lease options, entire repayments may be fully tax-deductible (when the equipment is used 100% for business purposes.) The total finance amount gets based on the ex-GST price of equipment and vehicles.