Finance Lease or Operating Lease:
- True finance lease is rarely used as it offers less flexibility than equity products
- Finance Lease can appeal to businesses who wish to avoid capital expenditure
- Most commonly used for motor vehicles but available on equipment in some circumstances
- Lease terms of 12 – 60 months are available
- Lender will “rents” the asset to the client who has no title but accepts the residual value risk
- Supplier/Dealer invoices the lender for the goods for Finance Lease.
- Lender can claim an input deduction for GST, therefore the loan amount is the GST-exclusive for Finance Lease
- price of the asset No deposit or trade-in equity can be applied to a Finance Lease
- The residual value is set in accordance with the ATO effective life guidelines for Finance Lease
- Passenger cars to be leased which will exceed 30,000 kms pa will require a “High Kilometre” letter to be acknowledged by the client in order to use the lower residual values as dictated by the ATO.
- If a client wishes to lease a vehicle which exceeds the Luxury Car Tax threshold, he/she must acknowledge that, for tax purposes, they are deemed to “own” the vehicle. Standard acknowledgement letters can be provided by the lender for this purpose.
- For asset depreciation and interest deductibility purposes, the asset is “owned” by the lender for Finance Lease
- The client may treat the monthly rentals as a deductible expense for finance lease.
- GST is charged and claimed on each monthly rental for finance lease.
Benefit of Finance Lease:
- Buying asset without the ownership will simplify the accounting for capital expenditure for Finance Lease.
- Amount of GST is financed and paid by the lender. Client get a flexible option to make the GST payment with regular monthly payment schedule for Finance Lease.
- Client get 100% tax deduction for the monthly repayment they make for the whole year for Finance Lease.
Finance Lease is one of the preferred lending option for any business type in any industry. Using Finance Lease option client can by business car, van, truck, business equipments, yellow goods, earth moving equipments. No matter your equipments or trucks are new or old we can help you to arrange finance as Finance Lease. Client can use the benefit of Finance Lease to purchase their new and old equipment for business and pay the loan off with extra repayments to save money interest. We are offering very competitive rate for Finance Lease for our clients
Simply send us the details of your desired purchase and a brief your financial situation to get a free quote for your for finance lease or operating lease applications.
Click here to submit a query for free assessment for finance lease or operating lease applications.Click here to read documentation process for finance lease or operating lease..
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New ABN OK
Old Equipment OK
Private Sale OK
Defaults, Credit impairment OK
No Deposit OK
Traditional, Non Bank and Private Lenders
Affordable Rent to Own Options also available
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NO Doc available = Simple Cashflow Forecast
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