When you need to replace equipment, vehicles or machinery, we can provide you with a cost-effective solution.
We will take the hassle out of acquiring equipment financing for:
Vehicles - Cars, wagons, vans, utes & 4WD.
Professional - Medical, dental & chiropractic equipment.
Refrigeration - Air conditioning, cold-rooms, cabinets etc.
Earthmoving / Mining - Backhoes, loaders, dump trucks.
Office - Computers & office equipment, security & shop fitouts, furniture etc.
Auto Repair & Mechanical - Spray booths, balancers, alignment, diagnostic.
Transport - Aircraft & Helicopters.
Whether you are a sole trader through or a large corporate, there are numerous finance options available to you.
There are different options that may have implications for your business, so it’s important that we establish the right facility at the outset.
We will work together with you & your Accountant to determine the right options for your business, now & into the future.
Please see below table for a summary of the most common finance options:
| Chattel Mortgage | Commercial Hire Purchase | Lease | |
|---|---|---|---|
| How does it work? | The lender funds the purchase of your asset. You repay the lender via your loan repayments. | The lender purchases the asset and you buy it over the loan term via your repayments. | The lender purchases the asset and you rent it for an agreed period via your repayments. |
| Who owns the asset? | You do from the start. | The lender does until you fully repay the loan, including any applicable balloon/residual payment. | The lender does and you simply lease it from them until the end of your contract where you purchase it for a pre-agreed price (ie; the Residual Value). |
| Can I make a deposit on the finance price? | Yes, you can if you choose to, but in most cases it isn't required. | Yes, you can if you choose to, but in most cases it isn't required. | No, not with this facility. |
| Can I have a balloon / residual? | Yes, you can if you choose to. | Yes, you can if you choose to. | Yes, all Leases must have a Residual Value. This value is a pre-determined (by the ATO) percentage of the original amount financed which varies depending on the asset. |
| What happens at the end of the loan? | Once all repayments & any applicable balloon payments have been made, you own the goods outright and no longer have any lender security held over them! | Once all repayments & any applicable balloon payments have been made, you've purchase the goods from the lender and now own them outright. | You have several options; You may purchase the goods from the financier for the pre-determined Residual Value or the Residual maybe refinanced into a new loan. |
| Is the interest rate fixed? | Yes - for the life of the facility. | Yes - for the life of the facility. | Yes - for the life of the facility. |
| Are the repayments fixed? | Yes - for the life of the facility. | Yes - for the life of the facility. | Yes - for the life of the facility. |
| How is GST applied to the finance? | The GST inclusive amount can be financed if you wish. No GST is paid on the repayments. | The GST inclusive amount can be financed if you wish. In addition, as of 1st July 2012, GST is levied on the terms/interest charges and all fees (in addition to the GST applicable for the sale of the goods). | The GST exclusive amount is financed. GST is paid on monthly repayments. |
| Can I claim the GST on my next BAS? | It's generally claimable however this point must be discussed to your Accountant to determine eligibility. | It's generally claimable however this point must be discussed to your Accountant to determine eligibility. | The GST on your monthly repayments is claimable over the life of the facility. |
| Are there tax benefits? | In most cases there may be a tax deduction for your depreciation & interest. | In most cases there may be a tax deduction for your depreciation & interest. | In most cases the monthly loan repayments are generally tax deductible. |
| However you must discuss this with your Accountant! | However you must discuss this with your Accountant! | However you must discuss this with your Accountant! |
* We recommend that you consult your Accountant or Adviser regarding any financial or taxation matters prior to making a decision on which type of facility you choose.
Each facility is different and does have different implications for your business. It's important to establish the right facility from the beginning. This is why we recommend discussing your own requirements with your professional team.
All services associated with Finance and Mortgage Broking are provided via Navigate Finance and Wealth Pty Ltd ABN 27 625 693 772 which is a Corporate Authorised Representative (no 508145) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237)
Jason Smith is an Authorised Representative (no 508187) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237)