Equipment Finance

Our equipment finance specialist will personally work with you and your accountant to identify the most appropriate funding solution based on your current business needs and objectives.

Equipment Finance

Our equipment finance specialist will personally work with you and your accountant to identify the most appropriate funding solution based on your current business needs and objectives.

Through the process, we will discuss a range of factors relevant to your business such as:

The type of equipment you are looking to purchase

What the appropriate term should be based on the specific equipment

Your current and future growth plans for the business

The appropriate payment schedule and residual values

The type of equipment you are looking to purchase
What the appropriate term should be based on the specific equipment
Your current and future growth plans for the business
The appropriate payment schedule and residual values

From these discussions, our equipment finance specialist will work with you to determine the most appropriate finance facility and funder appropriate from our trusted panel of lenders.

Asset Lease - Chattel Mortgage - Commercial Hire Purchase (CHP) - Operating Lease/Rental - Designer Financial Services

What is it?
Commonly referred to as a lease it is a product that enables the client to have the use of their business equipment/asset and the benefits of ownership, while the financier retains actual ownership of the equipment/asset.

How does it work?
Once the client has identified the type of equipment/asset their business needs the financier purchases it on behalf of the client.

The client then enters into the lease contract and pays the financier a fixed monthly lease rental for the term of the lease.

At the end of the lease the client can either pay a residual on the lease and take ownership of the equipment, sell the equipment/asset or re-finance the residual and continue the lease.

What are the Benefits?

  • Flexible contract terms
  • Fixed interest rates and monthly lease rentals
  • The equipment does not sit on the balance sheet 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*

* Please refer to your accountant for eligibility.

What is it?
Commonly used for vehicles a Chattel Mortgage is a commercial finance product where the client takes ownership of the vehicle (chattel) at the time of purchase.

How does it work?
Just like a residential property mortgage, once the client has identified the type of vehicle their business needs the financier advances funds to the client to purchase it, and the client takes ownership of the vehicle at the time of purchase.

The financier then legally takes a lien over the vehicle, known as a mortgage as security for the loan. The financier then registers their legal interest in the vehicle with the Personal Properties Securities Register (PPSR).

Once the final payment has been made under the contract the financier removes their legal interest in the vehicle from the PPSR giving clear ownership (known as title) of the vehicle to the client.

What are the Benefits?

  • Flexible contract terms ranging from 12 to 84 months (one to seven years)
  • A residual value can be applied to the contract to allows payments fit your cashflow
  • Fixed interest rates and monthly repayments
  • A tax deduction may be available when the vehicle is used for business purposes*
  • A client 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)*

* Please refer to your accountant for eligibility.

What is it?
Commonly called an offer to hire, CHP or HP a Commercial Hire Purchase is a commercial finance product where the client hires the equipment/asset from the financier for a fixed monthly repayment over a set term.

How does it work?
Once the client has identified the type of equipment/asset their business needs the financier agrees to purchase it on behalf of the client, and then hire it back to them over a set term.

The client has the use of the equipment/asset for the term of the contract but is not the owner.

At the end of the contract term when the total price of the equipment/asset (minus any residual) and the interest charges have been paid in full, the client takes ownership of the equipment/asset.

What are the Benefits?

  • Flexible contract terms ranging from 12 to 60 months (one to five years)
  • Residual value may be placed on contract
  • Fixed interest rate and monthly repayments
  • A tax deduction is available when the equipment/asset is used for business purposes*
  • GST is not charged on the monthly rental or residual payment (but is charged on fees and interest)*
  • Clients registered for GST may be able to claim the GST in the equipment/asset price, fees and interest*

* Please refer to your accountant for eligibility.

What are they?
These products are similar in that they are an agreement whereby the equipment or asset is purchased by the financier on behalf of the client and then rented by the client for a set term.

How does it work?
Once the client has identified the type of equipment/asset their business needs the financier purchases it on behalf of the client.

The client agrees to enter an agreement to rent the equipment or asset from the financier for a fixed monthly payment over a set term.

At the end of the term the client returns the equipment or asset to the financier with no further financial obligation.

What are the Benefits?

  • Contract terms are flexible
  • Fixed interest rates and monthly rental amount
  • The costs are known in advance
  • Capital is maintained within the business which maybe be more cost effective than paying cash for the equipment
  • Rental payments may be claimed as a tax deduction*
  • The equipment is not on balance sheet and therefore not considered to be a business asset

* Please refer to your accountant for eligibility.

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Client Case Studies

NSW Civil Company - Equipment Finance, Business Loan, Invoice & Debtor Facility

NSW Civil Company

What the client required: NSW Civil Company required 10 tipper trucks to fulfil a government backed infrastructure contract
What they supplied: Limited financials supplied (BAS Statements, Cashflow forecast and a work source letter)
Outcome for the client: 13 trucks running 18 hours a day and an increase in turnover of $500k per month
Other products: Equipment Finance (Mechanical Van) Business Loan, Invoice & Debtor Facility ($1m Facility)

VIC Excavation Company - Construction & Residential Property Loan

VIC Excavation Company

What the client required: Newly established VIC Excavation Company required one excavator to replace the one they’re renting at $10,000.00 per month
What they supplied: 9-month financials (Management accounts & rental statements)
Outcome for the client: 1 new excavator which they own for $2200.00 per month & saving of $7800 which has been invested to rent another excavator
Future plans: Construction & Residential Property Loan

NSW Civil Company - Truck and Dog added to the new business

NSW Civil Company

What the client required: Brand new NSW Haulage Company required one truck and dog to secure more haulage work happening in NSW
Background to the business: New entity has been guaranteed by existing company (2018 & 2017 Financials & previous credit reference supplied) no deposit required (which his current bank asked for)
Outcome for the client: Truck and Dog added to the new business which increased the revenue to $300k per year and no deposit required for this new entity