A Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing new plant & equipment. It can be used for new equipment or upgrading existing equipment. A balloon payment can be included which will result in lower monthly payments.
An asset lease enables you to have the use of your business equipment and the benefits of ownership while a lender retains actual ownership. The lender purchases the equipment on your behalf, and you then pay the lender a fixed monthly lease rental for the term of the lease.
At the end of the lease you have the option to either pay a residual on the lease and take ownership of the equipment, sell the equipment or refinance the residual and continue the lease.
Whether you need to increase production capacity or update old equipment, there comes a time in every business when an investment in plant and equipment is a must. The question is how to manage the purchase of expensive business equipment without tying up precious cash resources. Equipment financing is the solution!
There are many benefits to renting or leasing your plant and equipment, including:
- Fixed monthly costs help you budget and manage your cash flow
- Payments are tax deductible
- Leased equipment does not appear on your statement of financial position (balance sheet)
- Contract terms are negotiable so we can arrange a deal that meets your financial needs
Whatever industry you are in and regardless of whether your business is large or small our equipment finance team can help with all types of operating leases and equipment rental.
We take the time to understand your business and asset strategy so we can structure finance according to your objectives. This gives you the flexibility to grow without excessive strain on the lifeblood of your business – your cash.