Business Finance
- Asset/Commerical Hire Purchase
- Equipment finance
- Novated lease
- Additional info
- Rental agreements
- Business needs
Asset/Commercial Hire Purchase
What is Asset/Commercial Hire Purchase?
An asset/commercial hire purchase agreement provides a method of acquiring an asset, particularly when the hirer:
- Requires guaranteed eventual ownership of the asset
- Requires the benefits of depreciation of the asset.
The customer, or hirer, effectively purchases the asset by making the final payment, the hirer automatically gains ownership of the asset.
Benefits Include:
- Taxation advantages the interest paid and depreciation of the asset is generally tax-deductible
- Payments can be significantly reduced by providing a cash deposit or trade-in
- Fixed rate and term make budgeting easier
- Flexibility finance can be structured to suit your business cashflow
- Up to 100% funding for a fixed cost and term
- You can leave other assets, such as the family home, unencumbered.
What can be financed:
- Motor vehicles
- Trucks
- Buses
- Earthmoving machinery
- Office equipment
- Computers and communication systems
- Medical and dental equipment
- Printing and general manufacturing equipment.
Equipment Finance can be provide in a number of ways including:
* Leasing
* Asset/Commercial Hire Purchase
* Novated Lease
* Operating Lease/Rental agreement
What is a finance lease?
Under a finance lease, you have the use of property owned by someone else (the finance company) for a stated period during which you make regular payments which are generally tax deductible.
The Principal feature of a lease is the separation of ownership and use of the leased asset. In practical terms, this means your capital is not tied up by an outright purchase and your business retains more financial flexibility.
At the end of the lease term, it is usual commercial practice for you to make an offer for the asset for an amount no less than the agreed residual value stated in the lease agreement.
Benefits Include:
* Fixed rate and term make budgeting easier;
* Flexibility - finance can be structured to suit your business cashflow;
* Up to 100% funding for a fixed cost and term;
* Taxation advantages - with finance leases, the full monthly payment is generally tax deductible;
* You can leave other assets, such as the family home, unencumbered.
What can be leased:
* Motor vehicles;
* Trucks;
* Buses;
* Earthmoving machinery;
* Office equipment;
* Computers and communication systems;
* Medical and dental equipment;
* Printing and general manufacturing equipment.
How Does a Novated Lease Work?
This product enables an employee to lease a company car directly from a financier, whilst the employer undertakes to make the lease payment on the employee's behalf for the duration of their employment.
Employer benefits:
- Taxation benefits - the lease payments and running expenses are generally tax deductible
- The lease liability does not appear on the balance sheet
- A saving in employment "on-costs" in providing a company car compared with paying the equivalent as salary
- No responsibility for the vehicle on termination of the lessee's employment once the financier has been advised.
Employee benefits:
- "Salary packaging" benefits
- The use of a company car that may not otherwise have been provided
- An opportunity to make an offer for the vehicle at lease end
- The lease is "transportable" if there is a change in employer;
- The vehicle may be used by the employer's family, which is not always so with a company car.
Overdraft
Ideal for cash flow management, an overdraft essentially provides working capital to fund your business operation needs up to an agreed amount.
Receivables Financing
Receivables Financing is a facility which provides you with funding in advance for your approved credit sales, usually with receivables aged to 90 days.
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Bill Facility
Bill Facility offers a range of repayment options and provides your business with the tools to manage interest rate risk.
Capital Equity
Capital Equity is designed to take advantage of existing property equity. A Capital Equity Facility can provide you with a flexible line of credit secured by your residential, commercial and/or rural property.
Rental Agreements - give you the use of property owned by someone else (A financier) for a stated period during which you make regular payments which are generally tax deductible. At the end of the rental term the equipment is returned to the financier.
Benefits
- Taxation advantages - the monthly rental payments are generally tax deductible;
- The equipment is normally returned to the financier at the end of the rental period, which means that your business can easily upgrade to the latest technology
- Fixed rate and term make budgeting easier
- Flexibility - finance can be structured to suit your business cashflow
- Up to 100% funding for a fixed cost and term
- You can leave other assets, such as the family home, unencumbered.
What can be rented?
- Photocopiers
- Fax machines
- Computers
- Printers
- Telephone systems
- Scanners
- Factory equipment- forklifts, ride o sweepers etc.
Starting a Business is definitely a momentous, thrilling and certainly a little daunting. The decision to start your own business sits proudly alongside all of lifes big choices.
Whether youve decided to start from scratch, buy into an existing business, or enter into a franchise arrangement, much of the essential groundwork is the same.
Choosing a Business Structure - Your accountant can discuss the most common options for structuring a business. Whatever you decide, it is important to take the size of your business and budget into account.
Buying a Franchise - Many people think of franchising as a "business success formula". Whilst it may have some distinct advantages, beware of the pitfalls too.
Raising Finance - Whether you are looking for cash flow assistance, funds to grow your business, or finance for new equipment, we can assist you source the most attractive and flexible borrowing options to help meet your needs. Here are options you may like to consider:
- Business loans - usually provide to fund business growth, expansion or finance any worthwhile business purpose.
- Working Capital loans and Overdrafts
- Goodwill Finance for professionals - such as architects, dentists, doctors, solicitors and veterinary Surgeons.
- Equipment Finance
