Business Asset Finance Guide

Asset finance covers various structures including chattel mortgages, finance leases, operating leases, and hire purchase arrangements. Each has different ownership, tax, and balance sheet implications. The average equipment finance loan in Australia is approximately $73,000, though facilities range from small equipment purchases to multi-million dollar fleet and machinery acquisitions.

Chattel Mortgage: You own the asset and can claim GST upfront plus depreciation. Finance Lease: Lender owns the asset during the term; you may purchase at the end. Operating Lease: Off-balance sheet rental arrangement with return or upgrade at term end. Hire Purchase: You hire the asset with option to purchase on final payment. Each structure has different tax and accounting implications.

We arrange finance for: plant and equipment, vehicles and fleet, construction equipment, manufacturing machinery, technology assets, medical and dental equipment, hospitality equipment, and agricultural machinery. New and used assets can be financed, with terms and rates varying based on asset type and age.

Equipment finance rates currently range from 6.29-15% p.a. depending on asset type, borrower profile, and structure. Terms typically range from 1-7 years aligned with asset useful life. Deposits range from nil to 20% depending on asset type and borrower strength. Stronger businesses often access 100% financing.

The optimal asset finance structure depends on your business circumstances, tax position, and equipment usage requirements. Consider: Do you want ownership? How does the asset depreciate? What's your GST position? Is off-balance sheet treatment important? We help identify the most suitable arrangement for your specific situation.