Business Equipment Finance

Whatever your business needs, Aussie Equipment Loans can help you get on track – whether you need a fleet of trucks, new computers or catering equipment, restaurant fit-out or office furniture. Choose from the following equipment finance options for your business – hire purchase, chattel mortgage or novated leasing.

Hire Purchase

Hire Purchase is a rental agreement, but differs from Finance Lease in that the goods automatically become yours once all terms of the agreement have been completed. With Aussie Equipment Loans’ panel of lenders ownership of equipment rests with them until the final payment is made, however for tax purposes you may be able to claim equipment depreciation and interest paid, against your business income. (check with your accountant)

You also have the option of including an upfront deposit or trade-in to reduce your rental commitment, while a balloon payment may also be set at the end of the term (much like a lease residual) to acknowledge the equipment’s end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement.

Whatever the requirement, Aussie Equipment Loans can negotiate a repayment schedule to suit your needs.

Chattel Mortgage

Is essentially a charge over goods to be financed. The Chattel Mortgage allows businesses who operate under a ‘cash accounting’ basis to claim the full input tax credit from GST incurred expenses immediately.

Loan structures can be tailor made on a similar basis to Finance Lease and Asset Purchase facilities.

Finance Lease

Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental amount. A residual value is set to reflect the equipment’s value at the end of the term.

The goods are owned by the finance company, but the lease rentals are tax deductible to you, as long as the goods are used in connection with producing assessable income.

At the end of the Lease you can make an offer to purchase the equipment from the finance company, trade it in on a replacement, return it, or extend the lease for a further term.

Company Cars and Novated Lease

In recent years, Novated Leases have become a popular alternative for businesses wishing to provide their employees with motor vehicles.

A Novated Lease is effectively an agreement between the employee (a lessee), their employer and the finance company (the lessor).

It operates by creating a Finance Lease Agreement (refer to the Lease Agreement Section on this page) between the employee and the lender. A Novation Agreement is then entered between all parties, which transfers responsibility for the lease rental commitment to the employer during the lessee’s period of employment. On the employee leaving employment, the novation ends, with ongoing responsibility for the lease returning to the employee.

As motor vehicles acquired this way are leased by the employee, there are benefits for your business and your employee. These could include:

  • Potential to remove the vehicle fleet from your balance sheet.
  • Eliminating administration and maintenance costs involved in managing a fleet.
  • The ability to negotiate payment of vehicle running costs with your employees.
  • Freedom for your employees to choose their motor vehicle while enjoying the benefits of a company car.
  • No on-going company responsibility for the vehicle should an employee leave.