Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing new plant & equipment. It is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new equipment or upgrading existing equipment.
An asset lease enables you to have the use of your business equipment and the benefits of ownership while a lender retains actual ownership of the equipment. 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 re-finance the residual and continue the lease.
Commercial hire purchase
A Hire Purchase agreement is an arrangement to purchase equipment subject to payment terms. During the term of the agreement, the financier owns the vehicle, plant or equipment.
Ownership is automatically transferred to your business when it makes the final payment. The choice is also available to purchase the equipment at any time during the term of the agreement.
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.
Types of equipment we finance
Allied Leasing can arrange finance for cars, boats, motorbikes, jet skis and other registrable items. The most common form of financing is through a secured loan. The asset purchased is used by the lender as security for the loan often allowing a lower interest rate in return.
Secured loans (consumer mortgages) are designed for people purchasing for private use. Our products include chattel mortgage, hire purchase, novated leases and consumer car loans.
Leasing, hire purchase and chattel mortgage loans are available for vehicles used for at least 50% business needs.
At Allied Leasing we make sure the client application meets all lending criteria to provide the best chance of securing approval.