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Equipment Finance Operating Lease

An Operating Lease may be ideal for financing equipment that has a rapid rate of depreciation, quickly become obsolete or you constantly need to upgrade. These goods are usually IT and and technology based equipment such as computer hardware and software, telephony, and other office equipment such as photocopiers.

An Operating lease is basically a rental agreement that allows you to protect your businesses asset base against becoming obsolete. It will allow you to constantly upgrade your equipment. If the equipment you are financing may quickly become outdated, it may be of no long term benefit to hold equity in it

Operating Lease Key Features

  • Flexible Terms You can choose from terms of 1-5 years. Though more commonly terms of up to 3 years are generally standard. This is due to rapid depreciation rates for the type of goods financed.
  • Operating lease Residuals. With most operating leases you are not obliged to take ownership of the goods at the end of term you can simply hand them back to the financier or agree to purchase them at fair market value, often as low as $1.00.
  • Repayment Options You can choose to structure a repayment schedule that suits. This could be monthly, Quarterly, Bi-Annually, or Yearly.
  • You Can Claim the entire or just a portion of the lease (rental) repayment as a business expense, depending on the percentage of business use.
  • Your Lease Repayments will attract a GST charge as will the residual.
  • You Will Make Repayments on the purchase price minus GST. In other words you do not finance the GST at the time of setting up the lease but it is still paid for you.

Operating Leases and Security

This is a rental agreement the operating lease provider will own the goods, you will enter an agreement providing the borrowers guarantee for the rental payments.

Operating Lease Costs

Establishment Fees range from $0 to $350.00 depending on the finance provider. Rental repayments will be calculated using interest rates similar to other commercial loan types.

Why use Equipfin?

Equipfin is part of the Platinum Direct Finance group of companies who will finance over 800 million dollars worth of Vehicles, TrucksBoats, Equipment and Machinery this year! Due to this volume and buying power, we can give our clients access to the best personal loan rates and financing products across Australia.

Need More Information

Call Us Now on 1300 959 144 or simply email us at [email protected] we will give you an immediate approval indication and have your loan underway in no time at all!

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