Asset Finance Hub

For almost every small and medium-sized business, some equipment, machinery or vehicle is necessary to run the business but purchasing the equipment can be very expensive. Asset finance is a useful way for businesses of all sizes to finance the purchase of any type of machinery, equipment or vehicles needed to fully operate their business using the equipment itself as collateral against the loan.

Our team can help you with all matters of assets for finance. From vehicles for commercial and personal use to heavy machinery and shop fit-outs. We help find you finance for your equipment such as furniture and technology for offices, medical institutions, retail shops, warehouses and factories.

Passenger cars

Light and heavy commercial vehicles

Plant and machinery

Earthmoving and construction equipment

Dental, medical and veterinary equipment

Computer technology

Office furniture

Shop fit-outs

What are the benefits of Asset Finance?

When compared to traditional forms of finance, the benefits of asset finance include:

The most obvious benefit of equipment finance is that most lenders will offer you a loan even if you have other outstanding loans.

Because the equipment you purchase acts as a secure source of collateral for the loan, equipment finance rates are usually much lower than other types of business loans, especially if your business is planning on opting for an unsecured loan.

By opting to finance the purchase of expensive equipment and machinery, your company will free up more liquidity to be able to focus on growing your business-Improve cash flow

You can also reduce the risk of owning obsolete equipment and there can be various tax outcomes too

Reduce upfront costs

In addition, it can save you time to get asset finance as getting bank term loans can take a lot of time

There are a range of different forms of commercial loans and leases available in the market. Each is suited to different commercial circumstances; hence we recommend that you talk to an Accountant or financial adviser to see which solution is right for you. The most common ones are:

Chattel Mortgage (Commercial Loan)

Chattel Mortgages are a popular finance solution where you own the asset from the outset and your loan agreement is secured by the asset.

Under a Chattel Mortgage the financier advances funds to the business to purchase a vehicle, and the business takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a "mortgage" over the vehicle as security for the loan, by registering their interest over it with the PPSR. Once the contract is completed, the security interest is removed giving the business clear title to the vehicle.

What are the benefits of Chattel Mortgage?

You can tailor your loan payments by choosing the term 1-7 years

Other payment options can include a deposit and a balloon.

You can also structure payments to free up cash flow at the times of year you need it most.

Fixed interest rates and monthly repayments

*A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)

Hire Purchase

Under a hire purchase, a business leases an asset from a financier, who purchases the asset and agrees to lease it to the business. Throughout the lease, the financier owns the asset (and is responsible for repairs, maintenance and insurance). The business makes ongoing payments to the financier during the lease period for the use of the asset. The business takes ownership of the asset at the end of the lease period.

What are the benefits of Hire Purchase?

Flexible contract terms ranging from 1-5 years

Minimise cashflow by making a residual payment at the end of the lease, lowering monthly payments

A tax deduction may be available when the vehicle is used for business purposes*

GST is not charged on the monthly rental or residual payment (but is charged on fees and interest)

Customers registered for GST may be able to claim the GST in the vehicle price, fees and interest*

Your equipment is "off balance sheet"

Finance Lease

Under a finance lease, the Financier purchases the asset outright with the agreement with the business that it will lease the asset over a fixed period. The business is not committed to buying the car at the end of the term which is a benefit that suits business owners who are uncertain about the future of their company or need the latest vehicles or equipment without tying up a large amount of capital. Once the term is up, the business can simply return the car to the financier and walk away. However, you can choose to either buy the car outright by paying a final residual payment or trade it in for a new model and continue with a new lease agreement.

A Finance Lease differs from a Hire Purchase in that the business has full responsibility over the asset when the lease begins. This includes repairs, maintenance and insurance. The other difference is that the business does not have the option of gaining ownership after the leasing period has ended.

What are the benefits of Finance Lease?

Flexible contract terms

Fixed interest rates and monthly lease rentals

Your equipment does not sit "on your books" as an asset/liability

Tax deductions for the lease payments may be claimed

As the GST contained in the equipment's purchase price may be claimed back by the financier, only the equipment's price exclusive of GST is financed, lowering monthly payments*

Novated lease

A novated lease includes a three-way agreement between an employer, employee and finance provider by which the employer leases a car for the employee. The lease is under the name of the employee. A single repayment includes the lease amount and running costs – such as insurance, fuel and maintenance. The employer will make the monthly lease payments to the finance company whilst the employee pays the lease through pre- and post-tax salary deductions. This reduces taxable income and increase in net disposable income.