ASSET & EQUIPMENT FINANCE

Finance Lease

This is the most common form of Lease agreement, usually preferred by private companies who like to acquire the asset at the end of the lease by offering to pay the pre-determined “residual” value. Terms, residuals and rental frequency can be structured to suit a client’s specific cashflow requirements, or to maximize tax benefits during the lease period. Lease payments are usually fixed at the beginning of the Lease term.

Operating Lease

Larger corporates and Government departments favour Operating Leases as they are treated as an “operating” rather than a “capital” expense (i.e. equipment can be acquired against an operating budget without the need to obtain capital expenditure approval). Both the asset and liability remain off the balance sheet, which leaves gearing ratios in tact.

Hire Purchase / Chattel Mortgage

Chattel Mortgage and Hire Purchase (also known as Asset Purchase) are usually preferred by private companies who like to ultimately own their equipment. These facilities often suit cash flow as a GST input credit is still available even though the asset has not been fully paid for. Interest rates are usually fixed at the beginning of the term.

Lo Doc Equipment Finance

We deal with many different lenders including those who will do "Lo Doc" loans. This can be particularly helpful if you are in a new business looking to add assets or if you need an asset quickly, but haven't finalised your financial accounts.