Equipment Finance

Equipment finance enables you to acquire expensive plant and equipment assets required to run your business,
while spreading the repayments over time to suit your cashflow. This may be done monthly, quarterly, annually or seasonally depending on the timing of your revenue.

Whether you’re buying new or used equipment from a manufacturer, dealer, private sale, overseas supplier or auction,
Austrans can assist with the right solution for your business.

Equipment Loans are the most popular product for acquiring assets, however there are a number of options available
to suit your businesses’ tax, accounting and operating preferences.

Product Options:

All options described below are at fixed interest rates and usually available between 2 and 10 year terms.

  • Equipment Loan (Chattel Mortgage)

    Under an equipment loan, your business is the owner of the equipment for legal and accounting purposes. The security for the loan is in the form of a mortgage over the equipment (chattel) and usually Directors’ guarantees to repay the loan. GST paid on the asset may be claimed by the borrower for tax purposes, as well as Interest on the Loan and Depreciation of the asset.

  • Hire Purchase

    A Commercial Hire Purchase enables a lender to acquire plant or equipment on your behalf and hire the equipment to your business until the final repayment is made at which time ownership of the equipment transfers to your business. GST is payable on loan interest, resulting in slightly higher repayments. The lender is the legal owner, but your business is the owner for accounting purposes enabling you to claim GST, Interest on the Loan and Depreciation of the asset.

  • Finance Lease

    A Finance Lease enables you to pay tax deductable Lease Rentals to a lender who retains legal and accounting ownership of an asset until the Lease Residual is paid at the end of the term. Lease Residuals are specified percentages of the asset cost, determined by the effective life of an asset under tax guidelines.

  • Operating Lease

    An Operating Lease enables you to pay tax deductible Lease Rentals to a lender who retains legal and accounting ownership of an asset. End of Lease options include: Returning the asset to the lender under Specified Return Conditions; Re-Leasing the asset for an extended period at reduced Lease Rentals; Extending the Lease temporarily at existing Lease Rentals; or Negotiating the Acquisition of the asset for an agreed price.

Check with your accountant on the specific tax implications of these options and their suitability for your business.

Disclaimer: All information contained on this website is given in good faith and has been derived from sources believed to be accurate. However, the information is selective and may not be complete or accurate for your purposes. Austrans Finance makes no representation or warranty of any kind as to the accuracy or completeness of the information. It is general information only and should not be considered as a comprehensive statement on any matter and should not be relied upon as such.