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Business Equipment Funding
Let’s talk about equipment finance.
Most businesses need to purchase vehicles, plant or equipment at some point. It’s not always feasible to pay cash, so many businesses rely on access to funding their purchase.
It’s important to have the correct funding structure to suit your business and may be a good idea to seek the relevant tax advice before signing.
At Fox we have access to a range of equipment finance Perth solutions, with low interest rates and fast turnaround times.
Get in touch today to fund your next purchase.
A finance lease is a form of rental agreement operated by a finance company which allows you to lease equipment for an agreed term and a predetermined regular rental amount. The goods remain the property of the finance company but you benefit from the fact that the rental payments are tax deductible. All the equipment leased must be employed in producing assessable income. At the end of the lease you can make an offer.
A residual value is set by the finance company to reflect the equipment’s value and depreciation at the end of the rental term at which time you can either extend the lease, return the equipment in good condition, purchase it or trade it back in for an up-to-date replacement.
Hire purchase is another form of rental agreement, but differs from a finance lease because, as soon as the last payment is made, ownership of the equipment automatically transfers from the finance company to you.
This form of equipment acquisition can save you money in a number of ways. You can pay a deposit upfront to reduce your monthly payments or pay less monthly and a balloon payment at the end of the term. You’ll have time to save the balloon payment amount during the hire purchase period. You may be able to claim a tax deduction on depreciation and interest payments.
A chattel mortgage is essentially a charge over goods yet to be financed. It allows businesses who operate a ‘cash accounting’ system to immediately claim the full input tax credit from GST-incurred expenses.
At Fox we have access to a range of funding solutions,
We will be there to guide you through the whole process of Equipment Finance, whether you are looking for finance lease, hire purchase or a chattel mortgage.
Get in touch now to book your appointment with a Fox Finance Broker.