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Rental Finance is very simply and provides a far more
flexible finance option as you can add, delete or vary the
contract during the term. When accounting for a rental the
asset and liability is not disclosed and therefore is off
balance sheet and, a tax deduction for each installment is
available - in most cases.
Corporate Hire Purchase (CHP) - When ownership of
the asset is desirable, this type of asset purchase financing
is an alternative to leasing. A typical CHP structure has
a term of 2-5 years with payments made monthly although other
options are available. You have a choice of balloon payment
between nil and 45% of the financed amount.
With a Finance Lease, the assets and liabilities are
disclosed on the balance sheet. A tax deduction for each installment
is available when the equipment is used for business purposes.
With a Finance Lease, GST is calculated on your monthly repayment.
Finance Lease is an ideal facility for motor vehicles, trucks,
plant and equipment.
Sell and Rentback - Sell your existing technology-based
assets to the financier to avoid any capital loss associated
with the disposal of assets. The sale price is generally determined
by the greater of the written down value or the market value
of the equipment. The equipment is then rented back to you
over pre-agreed terms, which generally reflect the remainder
of it's useful life until your next replacement or upgrade
plans take place.
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02 9744 7099