[ chattel mortgage ][ finance lease ][ hire purchase ]
[ insurance premium funding ][ novated motor vehicle leasing ]
[ quotation request form ]

ALLFREIGHT FINANCE BROKERS offers specially tailored packages - FOR THE PURCHASE OF:

[ top ]

EQUIPMENT FINANCE OPTIONS

Chattel Mortgage

A Chattel Mortgage facility is similar to a standard loan facility and can be used to fund any type of equipment, whether new or used. Funding can be for any amount up to 100% of the equipment cost (Including GST).

A chattel mortgage allows you to purchase the goods and achieve immediate ownership. Your title to the goods is charged to the lender and you pay a fixed periodic installment for the term of the contract.

A chattel mortgage can provide substantial tax benefits relating to the GST. With a chattel mortgage you can optimize your cash flow while minimizing the impact of the GST, which is not applicable to your individual repayments. Provided you are registered for the GST you will be able to claim the GST portion of the purchase price as an Income Tax Credit (ITC) immediately on your next BAS Statement.

You may choose to finance the GST portion as part of your loan amount and structuring the loan to allow you the ITC as a payment after the next BAS is lodged and the credit received.

[ top ]

Finance Lease

Under a Finance Lease Agreement, the financier purchases the equipment you require and then leases the goods to you. You then enjoy the use of the vehicle or equipment for an agreed time and in return you pay a series of rental repayments. The lease agreement sets out the terms of the lease in months, the monthly rental, the residual value of the goods and the depreciation rate. The lease payments are fully tax deductible.

When the lease expires you can choose to:

[ top ]

Hire Purchase

Commercial Hire Purchase (also known as Asset Purchase) is similar to leasing except the customer claims the allowance depreciation on the equipment plus interest as a tax deduction, as opposed to claiming the actual lease payments with finance lease.

The choice between the two will depend on which option maximises the company's tax deductions. This in turn will depend on the term and the depreciation create allowable on the equipment. The customer can structure the payments so that nothing is owing at the end of the term or a small "balloon" payment (like a residual in a finance lease) can be used to offset and reduce monthly payments.

[ top ]

Insurance Premium Funding

Clients with annual insurance premiums exceeding $10,000 can preserve cash flow while still choosing their insurance provider. Premiums can be funded over six to nine monthly payments with an interest cost as low as 4% from different brokers or underwriters.

[ top ]

Novated Motor Vehicle Leasing

Under this arrangement, an employee leases a motor vehicle from the financier using a standard finance lease agreement. The employee then sub-leases the vehicle to the employer under an operation lease. A "Novation" agreement is entered into between the employee, employer and the Financier under which the employee's obligation for the term of the Novation agreement. Therefore the employer pays the lease rentals direct to the financier.

The transfer of benefits and deductions is allowable under tax ruling IT2509, which specifically addresses Novated Leases. There is no equivalent Hire Purchase facility.

[ home ][ finance ][ insurance ][ mortgage ][ contact ][ links ][ quote request ][ top ]