Asset Finance

December 12, 2018

There are many types of asset finance offered by banks.  Choosing the right option has both cashflow and tax implication.  Make sure you engage the right advisor to give you advice on which option is best for you Contact us >:

You own the vehicle, which is then used as security.

  • 100% finance available to approved customers

  • Arrange a balloon payment at the end of the loan to reduce your regular repayments.

 

 

 

The bank owns the asset, but you can use it. You'll take over ownership once you've made the final payment.

  • An offer to hire can be arranged with no deposit

  • The vehicle being hired is normally enough security

  • Arrange a balloon payment at the end of the term to reduce your regular payments.

The bank purchases the vehicle you need and lease it back to you. When the lease expires, you can either return or purchase the asset.

  • Immediate access to the asset without using up capital

  • The asset being leased is normally enough security

  • Match your lease to the period you need the asset for.

The financier owns the asset, while you and your employer sign a novation agreement to share the responsibilities of the loan.

  • Monthly lease payments and a final residual payment are based on your circumstances and guidelines set by the Australian Taxation Office.

  • If you are interested in a Novated Lease, talk to your HR department for options. LEARN MORE >

Operating Leases can often be used to fund many different assets. Payments towards this type of finance can sometimes be considered operating costs and will not appear as a liability on your balance sheet:

 

Fleet Operating Lease

 

With this type of finance, the financier owns the vehicle and the client returns it at the end of the term, usually from 12 months to 5 years. When leasing a vehicle, the fixed monthly payments typically cover registration, insurance, tyres and scheduled servicing and maintenance. For a small business, a Fleet Operating Lease can help free up time and resources.

 

Technology Rentals / Lease

 

Technology can change quickly and often the large up-front costs of purchasing the latest equipment will make a big dent in your cash flow. Renting rather than owning technology can help reduce the risk of owning obsolete equipment while preserving cash to grow your business.

 

Similar to a Fleet Lease, the financier owns the equipment and the client returns it at the end of the term, usually within 3 years.

 

A master rental agreement with a pre-approved limit. You can draw down on funds at any time to acquire equipment – you don’t need to apply for additional funding and you repay the amount over the agreed term in monthly installments.

Sometimes, assets that you buy from overseas needs to be paid for before the asset arrives to Australia. Traditional asset finance requires the asset to be immediately accessible by the financier.  A more structured solution is needed for imported assets.

 

Although the list of assets that can be finance directly is extensive, there are a number of common categories:

 

  • Cars: by far the most common form of asset finance

  • Other vehicles: trucks, buses and other road vehicles

  • Agriculture machinery: tractors, farming equipment etc

  • Plant and equipment: machinery, pallet racking, refurbishments and office equipment  

  • Technology: traditional hardware as well as softwares

  • Medical: CT Scanners, MRIs, ultrasound equipment, X-ray equipment, Nuclear medicine PET etc

  • Aircrafts: Airbus, Boeing, Bombardier and others

  • Energy efficient: renewable energy assets

Read more on why to use asset finance.

 

Read our most comprehensive guide to asset finance.

 

If you would like to know more about any form of finance that your business can take advantage of, please feel free to contact us or call us on 1300 95 94 86.

 

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