Asset finance can help you invest in and grow your business. Choosing the right kind of asset finance can save you time and money, reduce the impact of maintaining efficiencies with obsolete equipment and also deliver some much needed positive tax outcomes too.
@Finance are specialists at acquiring finance for a wide variety of business assets. Some of the assets we commonly finance include, vehicles from construction and farming equipment to luxury for commercial and personal use, shop fit-outs and equipment such as furniture or new technology for retail shops, offices, medical institutions, warehouses, factories and farms.
Common questions that arise when considering asset finance include:
- Are there specific times when I need to smooth the bumps in my cash flow?
- What are the possible tax outcomes of financing an asset?
- How much capital do I need to grow my business?
- How long will I need the asset and will it need to be upgraded?
- Is there specific technology that is rapidly changing in my industry?
- Should I ‘finance to own’ or ‘finance to return’ my asset?
Your main asset finance options include: Chattel Mortgages, Finance Leases and Novated Leases. Each one of the options (briefly outlined below) is suited to different commercial circumstances, so it is important that you talk to a specialist when considering your options.
You should also be ready to talk to your accountant or tax advisor to ensure you are making a wise business decision.
The @Finance Asset team can help when you are ready to look at your options – just call us 1300 469 840.
Asset Finance Options Overview:
Chattel Mortgages are commonly used where you own the asset from the outset and your loan agreement is secured by the asset. Your loan repayments can be tailored by choosing the term — this is typically up to five years. Other options can include paying a deposit or simply making a larger final instalment. You can also structure your payments to free up cash flow when you need it most.
This type of lease can benefit businesses who need the latest vehicles or equipment without tying up a large amount of capital. In a Finance Lease, the financier owns the asset although you carry the risk of disposal (of the asset) at the end of lease. You can structure lease payments in advance or arrears and across terms of up to five years. A residual value is also required in line with the asset’s use and the Australian Taxation Office’s guidelines.
A popular car finance option for employees. We make a lease arrangement with your employer so you can finance a car for personal use through salary sacrifice.
The financier owns the asset, while you and your employer sign a novation agreement to share the responsibilities of the loan. Monthly lease payments and a final residual payment are based on your circumstances and guidelines set by the Australian Taxation Office.