Vehicle & Equipment
The purchase of business assets can be fast and efficient with a range of finance solutions to choose from. Whether you need flexible repayment options for a commercial Chattel Mortgage to help improve your cashflow or you choose to purchase and lease assets on your behalf.
This isn’t just for vehicles. We have financed everything from a car to mining equipment to weighbridges. Whatever it is your business needs you can be assured there is a way to finance it.
Types of Equipment Loans:
A chattel mortgage is a commercial finance product where the customer takes ownership of the vehicle (chattel) at the time of purchase.
How does a Chattel Mortgage work?
Under a Chattel Mortgage the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a “mortgage” over the vehicle as security for the loan, by registering their interest over it with the PPSR. Once the contract is completed, the security interest is removed giving the customer clear title to the vehicle.
Benefits of a Chattel Mortgage
- Flexible contract terms ranging from 12 to 84 months (one to seven years)
- A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget
- Fixed interest rates and monthly repayments
- A tax deduction may be available when the vehicle is used for business purposes *
- A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)
* Please refer to your accountant for eligibility.
How does an asset lease work?
The financier purchases the equipment on behalf of the customer, who then pays the financier a fixed monthly lease rental for the term of the lease.
At the end of the lease the customer can either pay a residual on the lease and take ownership of the equipment, sell the equipment or re-finance the residual and continue the lease.
Benefits of an asset lease
- Flexible contract terms
- Fixed interest rates and monthly lease rentals
- Your equipment does not sit “on your books” as an asset/liability
- Tax deductions for the lease payments may be claimed
- As the GST contained in the equipment’s purchase price may be claimed back by the financier, only the equipment’s price exclusive of GST is financed, lowering monthly payments.
** Please refer to your accountant for eligibility.