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motor vehicle and equipment finance
Holistic Home Loans can arrange various forms of asset finance to suit your business requirements. Please find a brief summary of the options below, contact an Holistic Home Loans adviser to discuss the options most suited to your situation in more detail.

mv + equipment leasing

Under a Lease agreement, the Financier (Lessor) purchases the vehicle or equipment and leases it to you (the Lessee) at a fixed rate over a specified term (usually 3 to 5 years). A lease will typically have a residual or 'balloon' payment at the end of the lease term. At the end of the term, the asset is owned by the Lessor, however you may have the option to purchase.

Lease payments are tax-deductible to the percentage the equipment or vehicle is used for business. Lease and residual payments attract GST, however this may be claimed as an input tax credit where the Lessee is registered for GST and goods are used for business purposes.

Leasing agreements are commonly used to finance motor vehicles, office equipment, machinery, buildings and commercial fit out. Motor vehicle leases may also take the form of an Operating lease or Novated lease. Some lenders will also consider a Finance or Operating Lease on a " Sale and Lease Back" basis if you have previously paid for your equipment. However, this may depend on the age of the equipment and the length of time you have owned it.

commercial hire purchase

Commercial Hire Purchase agreements enable commercial users to purchase goods by means of installment repayments over a specified term (ranging from 1 to 5 years), with guaranteed ownership at the end of the agreement. A hire purchase will typically have a residual or 'balloon' payment at the end or option for a deposit at the beginning of the agreement.

Unlike a lease, you own the asset and hence depreciation and interest are usually tax-deductible, when the equipment is to be used for business purposes. The GST applicable to the purchase of the asset on the purchase contract can be paid or included in the amount to be financed. GST does not apply to each repayment or the residual/balloon, if applicable.

Some lenders will also consider a Hire purchase on a " Sale and Lease Back" basis if you have previously paid for your equipment. However, this may depend on the age of the equipment and the length of time you have owned it.

 

equipment loans

With an Equipment Loan, also referred to as a "Chattel Mortgage", you own the asset but the financier takes security over it until the contract is paid in full. Terms range from 1 to 5 years, with the option of a balloon or residual payment.

Equipment Loans can optimise your cash flow while minimising the impact of GST, which is not payable on individual repayments (as is the case with leasing). If your business is registered for GST, you will be able to claim the GST portion of the purchase as an input tax credit immediately to the percentage the equipment or vehicle is used for business purposes.

Alternatively, you have the option of funding the GST portion of the invoice price as part of the loan amount and have the loan structured to allow you the input tax credit as a payment after the next BAS is lodged and credit received.

 
Holistic Home Loans
18/12 Tyron Rd
Lindfield NSW 2070
Email:
Telephone: 1300 452 384