Business Car Finance

Business Finance

Hire Purchase

The Commercial Hire Purchase (CHP) agreement is a legally binding contract where the financier you gives you the right to possess and utilize a car or other vehicle in exchange for monthly repayments. A balloon payment is a huge sum of payment that can be made at the end of the lease term and is optional with a hire purchase agreement.

You may choose to upfront to deposit or trade-in to reduce your rental bind, while a balloon payment may also be set at the end of the term (much like an outstanding lease) to acknowledge the equipment's end value. Otherwise, you may choose to structure your rentals to clear the debt in full over the term of your agreement.

Chattel Mortgage

Is essentially a charge over goods to be financed. The Chattel Mortgage allows businesses who operate under a ‘cash accounting’ basis to claim the full input tax credit from GST incurred expenses immediately.

Loan structures can be tailor made on a similar basis to Finance Lease & Asset Purchase facilities.

Finance Lease

Finance Lease is a type of rental agreement under which you lease your nominated asset for an agreed term and rental amount. The remaining value is set to return the equipment's price at the end of the term.

The supplies are owned by the finance company, but the lease rentals are tax deductible to you, as long as the supplies are used in tie with producing assessable profits.

At the end of the Lease you can make an offer to purchase the equipment from the finance company, trade it in on a replacement, return it, or further widen the lease for a term.

Company Cars and Novated Lease

In later years, Novated Leases have turn into a popular alternative for businesses wishing to give their employees with motor vehicles.

A Novated Lease is effectively an agreement between the employee (a lessee), their employer and the finance company (the lessor).

It function by making a Finance Lease Agreement (refer to the Lease Agreement Section on this page) between the employee and the Bank. A Novation Agreement is then entered between all parties, which transfer responsibilities for the lease rental commitment to the employer all through the lessee's period of employment. On the employee leaving employment, the Novation ends, with ongoing responsibility for the lease returning to the employee.

As motor vehicles acquire this way are leased by the employee, there are benefits for your business and your employee. These could include:

• Potential to remove the vehicle fleet from your balance sheet.
• Eliminating administration and maintenance costs involved in managing a fleet.
• The ability to negotiate payment of vehicle running costs with your employees.
• Freedom for your employees to choose their motor vehicle while enjoying the benefits of a company car.
• No on-going company responsibility for the vehicle should an employee leave.