A Finance Lease is a contract where the finance company (the lessor) purchases the equipment or vehicle required by the customer (the lessee) and is therefore the owner of the goods. The finance company then leases the goods back to the customers under a lease agreement, which carries a residual value, the term, and the monthly rental and depreciation rate.

When the lease expires, the goods in return for regular payments. When all payments are made the title of customer has the opportunity to return the goods to the finance company that will dispose of the goods in the market place. If the net sale price is less than the residual value agreed upon, it is the customers responsibility to clear the shortfall

The customers can refinance the residual subject to the finance companies acceptance. Make an offer to purchase the goods (normally for the residual amount)

WHO CAN TAKE OUR FINANCE LEASE?
Companies and business professionals wishing to finance items such as Motor vehicles, trucks, industrial plant and equipment, earthmoving equipment, business and professional equipment which is used predominantly for business purposes.

FEATURES

  • Customers can finance the goods and therefore working capital can be used for other purposes.
  • The term of the lease can be a maximum of 60 months (subject to the Finance company and ATO guidelines
  • There are no ongoing monthly fees
  • Customers can negotiate rentals and residual values within an approved range that allows more flexibility.
  • Customers may be able to claim full tax benefits if the goods used are to produce assessable incomes
  • Repayment schedules can be structured to suit your cashflow.
  • Installments are lower during the term of the loan, and then negotiate the residual payment at the end of the term.
TERM
Minimum tem of 12 months to maximum of 60 months.

REPAYMENTS

  • Repayments are monthly, quarterly, semi annually, yearly, seasonally or irregular.
  • Payments can be made by Direct Debit, periodical payment from your nominated bank account, B-Pay or deposit booklet.
INTEREST RATE
The Interest Rate is fixed throughout the term of the loan. It is based on market/economic conditions and strengths of the applicant.

FEES AND CHARGES

  • An upfront tax deductible establishment fee of $385.00 (GST inc)
  • Customers requiring a payment booklet are charged $126.50 (GST inc)
  • Government fees and charges may apply
  • Early termination fee is applicable
  • Early payment loss fee may be applicable if loan is paid out before the term set

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