Finance Lease is an agreement where the lender purchases the goods/equipment and leases the goods to the customer at an agreed rental and on an agreed term.

Advantages:

• Agreement can be tailored to meet the life of the goods and the individual needs of the borrower.

• Finance terms up to 7 years.

• Monthly rentals, structured rentals, seasonal or irregular rental arrangements.

• Rentals are fixed for the term of the lease.

• Finance for 100% of purchase.

• The GST component of purchase price is not included in the amount to be financed but it is paid and claimed by the lender.

• A lease may be used for either new or used equipment.

• A residual value is set subject to the parameters of Australian Taxation Department guidelines and is agreed between the borrower and the lender

Benefits to the borrower:

• Monthly, seasonal or irregular rental payments are fully tax deductable.

• Lease Rentals attract GST which is claimed over the term of the lease via the Business Activity Statement.

• Preserves working capital within the business.

• Fixed rental payments allow controlled cash flow management.