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Finance Lease

A Finance Lease also referred to as a lease or business lease, it may suit those businesses who wish to have an Off Balance Sheet style of funding. You are not the owner of the goods so the value of the goods will not be entered on your balance sheet so neither the contingent liability.

The Finance Lease Provider will buy the goods on your behalf, and you will lease (rent) the goods back from them for a predetermined term, monthly repayment and residual.

Finance Lease Key Features

The Key Features of a Finance Lease are:

  • Flexible Terms You can choose from terms of 1-5 years.
  • Fixed Residual A residual may be compulsory, this residual is set by the lease provider and is calculated using the ATO depreciation guidelines.
  • Repayment Options You can choose to structure a repayment schedule that suits. This could be monthly, Quarterly, Bi-Annually, or Yearly.
  • You can claim the entire or just a portion of the lease repayment as a business expense, depending on the percentage of business use.
  • Your Lease Repayments will attract a GST charge as will the residual
  • You Will Make Repayments on the purchase price minus GST. In other words you do not finance the GST at the time of setting up the lease but it is still paid for you.

Leasing and Security

The security offered for a Lease should only be the goods that you are actually financing. No further security should be required other than the guarantee of the borrower.

Leasing Costs

Leasing costs can range from $0 to $350 for establishment and interest rates should be the same a a chattel mortgage or commercial hire purchase type loan.

Why use Equipfin?

Equipfin is part of the Platinum Direct Finance group of companies who will finance over 800 million dollars worth of Vehicles, TrucksBoats, Equipment and Machinery this year! Due to this volume and buying power, we can give our clients access to the best personal loan rates and financing products across Australia.

Need More Information

Call Us Now on 1300 959 144 or simply email us at info@equipfin.com.au we will give you an immediate approval indication and have your loan underway in no time at all!

 
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