| Finance Lease |
| Purpose |
- Available for companies and business
professionals to buy business goods such as motor vehicles,
trucks, industrial plants, professional or earthmoving
equipment.
|
| How it works |
- The financier purchases the equipment
or vehicle you require and then leases the goods to you. You
then enjoy the use of the vehicle or equipment for an agreed
time in return for a series of rental repayments.
- You can finance the outlay you’ve
already made for goods purchased in the last six months.
|
| What is the lease
agreement? |
- The lease agreement sets out the:
- Residual value of the goods
- Term of the lease in months
- Monthly rental
- Depreciation rate
|
| When the lease
expires |
- You can choose to:
- Return the equipment to the financier who can sell it
in the market place (you would need to make up the
shortfall if the net sale was less than the agreed
residual value)
- Take up any invitation the financier may give you to
purchase the equipment
|
| Product Benefits |
| No initial cash
outlay |
- A finance lease gives you immediate
access to the goods your business needs without a capital
outlay so you can put your day-to-day cash flow to better
use.
|
| Negotiate your
payments and residual value |
- Within an approved range allowing more
flexibility in budgeting
|
| Flexible terms |
- Match your finance to the length of
time the asset is required – from one to five years
|
| Match your cash
flow |
- Tailor the repayments to suit seasonal
cash flow. You can also arrange to make a balloon payment at
the end of the loan to reduce repayments throughout the
term.
|
| Tax deductible |
- Rental payments are fully tax
deductible if the equipment is used solely for earning
assessable income. Speak to your accountant for further
information about tax benefits.
|
| Free up other
valuable assets |
- The equipment being purchased is
normally sufficient security for the finance – your other
business assets are not required as security.
|
| Interest rates |
- The rentals are fixed throughout the
life of the loan.
|
| Product Features |
| Term |
|
| Repayment
frequency |
- Monthly, quarterly, semi-annually,
annually, seasonally or irregularly.
|
| Repayment methods |
- Direct debit and periodical payment
from a nominated bank account, BPAY® and cash/cheque
deposits via a cash booklet.
|
| Other details |
- The residual value of the leased goods
is established in accordance with a schedule issued by the
Commissioner of Taxation.
- Lease rentals are usually tax
deductible if the leased goods are used to produce
assessable income.
|
