A Finance Lease agreement is an agreement between the financier (lessor) and you (the lessee). The financier owns the asset while you enjoy the full benefit of the asset in return for regular repayments.
Available to individual business professionals, partnerships or companies.
The type of asset you can purchase is endless: Motor vehicles, buses, trucks, trailers, plant, equipment, earthmoving machinery, tractors and many other assets.
If you have purchased the goods within 6 months you can also refinance back by way of a sale and leaseback.
- The full price of the asset must be financed, therefore no deposit required, preserve your cash flow.
- The asset being financed is in most cases sufficient enough security for the financier
- For taxation purposes, you can claim the full repayment as a tax deduction depending on the amount of business usage from the asset (As each individual’s or company ’s set up is different please see your accountant for further clarification and guidance about the tax benefits)
- The interest rate is fixed for the term of the loan which means your repayments don’t alter.
- Once the agreement is finished, you have the option of handing back the asset to the financier (Any shortfall the financier suffers in selling the asset becomes your liability) or pay out the residual if invited by the financier to take full ownership of the asset
- You can finance the asset from 1 year to 5 years.
- Finance amounts start from $10,000 and upwards.
- Choose your own repayment frequency to suit your business. Monthly quarterly, semi – annually, annually, or irregular.
- And make your repayments via D-debit, BPAY, coupon book and periodically.