Finance Lease
A Finance Lease is a contract where the Financier purchases the equipment and leases to you for an agreed term and rental.
Key Features
- 100% of financing
- GST is not included in the amount financed but paid and claimed by the financier
- Total Monthly Repayments are fully tax deductible
- The Residual Value is fixed and is agreed between the financier and you and is subject to Australian Taxation Office guidelines
- Payments may be structured – including irregular or seasonal payments
- Finance term up to 7 years
- Structure and term generally matched to meet useful life of the asset
- Rentals are fixed for the life of the lease
- The rentals and the residual value attract GST
Key Benefits
- Preserves working capital
- Rentals are tax deductible
- Fixed payments means cash flow is easy to manage
