Finance Lease
The lender purchases the equipment for you and, in return, you pay us a series of rental payments, which are fully tax deductible (if the equipment is used solely for earning assessable income).
An advantage of a finance lease is that you get to use it for the finance lease period. The lender has the right to sell the equipment if they wish but usually you can purchase the equipment for the agreed value, this known as the residual value. The residual value is stipulated in the finance lease agreement.
How Does a Finance Lease Work?
In a finance lease agreement the lender is know as the leaser and you are know as the lessee. Essentially the lender will purchase the asset on your behalf and lease it to you as specified in the Lease Agreement. The finance lease agreement has all the contract details such as the residual value of the asset, the period for finance lease, the monthly lease payments and the depreciation rates for tax purposes.
When the Finance Lease expires, There Are Aome Alternatives Available to You:
- You can opt to refinance the residual value of the finance lease
- The finance lease contract can be payout in full
- Alternatively you make an offer to purchase the asset. We will listen to you offer and make a decision to accept the offer.
Who can Benefit from a Finance Lease?
A finance lease is perfect finance option for businesses that would like to wish to make a purchase of a vehicle, equipment or similar assets.
Finance Lease Key Features
- The period of the finance lease is flexible and we offer up to 60 months finance lease contracts.
- The finance lease agreement outlines the residual value, which has been determined by the schedule, handed down from the Commissioner of Taxation.
- The repayment schedule is very flexible:
- Fortnightly
- Monthly
- Yearly
- Quarterly
- Semi Annually
- Seasonal
- Irregular
- You get to use the asset immediately without any capital outlay, which will free up cash flow for your business.
- The finance lease is tax deductable
Finance Lease Benefits
- You can free up your cash flow as there is not deposit required for a finance lease while still enjoying the benefits of the asset.
- The residual values and rental agreement terms are negotiable to accommodate you circumstances.
- We offer a finance lease for up to 60 months
- You can utilise the tax benefits to reduce your tax.
Finance Lease Interest Rates
- Interest rate is fixed throughout the term of the loan.
How do we rate against the banks?
Our Rates |
The Banks |
|
|---|---|---|
| Cars from | 8.27%* | ANZ Personal Loan rates from 13.89%† |
| Bikes from | 8.95%* | Westpac Personal Loan rates from 13.89%† |
| Boat from | 8.75%* | CBA Personal Loan rates from 13.80%† |
| Commercial from | 7.75%* | NAB Personal Loan rates from 13.40%† |
Finance Lease Fees and Charges
-
The fees and charges for a finance lease are know up front, as listed below.
- There is an establishment fee which includes GST and is payable.
- There is a cashbook keeping fee which includes GST and is payable
N.B. The fees and charges need to be paid up front as they can’t be rolled into the finance lease. This will need to be paid when the finance lease is signed. The monthly finance rental payments may attract GST. Other fees may apply.
Finance Lease Repayment Calculator
Finance Lease Repayment Schedules
Repayments can be made
- Fortnightly
- Monthly
- Yearly
- Quarterly
- Semi Annually
- Seasonal
- Irregular
Click here to review our Comparison Table of Loan Products
*Terms, fees and conditions apply. To approved applicants only. Rates are guide only and assume clear credit.
†rates advised on their respective websites. Information correct as at 18th of September, 2009
