Breez Finance : Breez Leasing

Breez Leasing

CHATTEL

Chattel mortgages provide finance for companies and business professionals to purchase good such as motor vehicles, trucks, earthmoving equipment, industrial plant and other commercial equipment, which are for business use more than 50% of the time.

With leasing, you own the goods your business needs without paying for them up-front. You take ownership of the goods upon delivery and the finance secures the loan by registering a charge over the goods. 100% finance is available in most cases. Repayments can be tailored to suit your needs, with the option of a balloon payment at the end of the loan to reduce repayments throughout the term.

Generally loan terms extend from one to five years with amounts of $10,000 and upwards. You may repay the contract in full before the term ends.

EQUIPMENT LOAN

A customised operating lease gives you full use of an asset while allowing you to avoid many of the risks associated with ownership – such as depreciation in value, obsolescence and asset disposal.

FINANCE LEASE

Finance leases are available for companies and business professionals to allow them to use business goods such as motor vehicles, trucks, industrial plant, and commercial equipment and earthmoving equipment. The financier purchases the equipment you require and the leases the goods to you. You then enjoy the use of the equipment for an agreed time in return for an agreed monthly rental repayment. The lease agreement sets out the residual value of the goods; term of the lease in months; monthly rental; depreciation rate.

When the Lease Expires

return the equipment to the financier (if the financier makes a loss on the sale you will need to make up the shortfall)
refinance the residual value
payout the loan contract
purchase the equipment

Generally loan terms extend from one to five years with amounts of $10,000 and upwards. You may repay the contract in full before the term ends.

Rental payments are fully tax deductible if the equipment is solely for earning assessable income. Rental payments are fixed throughout the life of the lease. The residual value of the leased goods is established in accordance with a schedule issued by the Commissioner of Taxation.

HIRE PURCHASE

Available for companies and business professionals to buy business goods such as motor vehicles, trucks, industrial plants, professional or earthmoving equipment.

A hire purchase agreement is a contract where the financier (owner) gives the hirer (you) possession and use of an item of equipment in return for regular payments. When the final payment is made the hirer (you) owns the goods.

Depreciation on the equipment and the interest component of the rental are tax deductible if it is used to produce assessable income or the expense is necessarily incurred in carrying on a business.

Hire purchase can be arranged with no deposit or an amount that suits you. You may tailer the repayments to suit seasonal cash flow, however repayments are fixed throughout the life of the loan. You can also arrange to make a balloon payment at the end of the loan to reduce repayments throughout the term. You may repay the contract in full before the hire purchase term ends.

The terms are usually one – five years and require amounts of $10,000 and upwards.

NOVATED LEASE

Novated leases are available for employees who have the option of receiving a car as part of their salary package. The employer pays all rental payments to the financier and the employee enjoys full use of the motor vehicle.

How it works: The employee chooses a vehicle and leases it from the financier. The employee novates the lease to their employer. The employer assumes all the employee’s rights and obligations under the lease, including responsibility of meeting the lease rentals. The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times.

When the employee leaves the company, the vehicle remains with the employee. In this situation the employee takes over the payments until the lease is novated to another employer to make the payments. In this way, the original employer is not left with an unwanted car and the employee keeps the vehicle.

Generally loan terms extend from one to five years with amounts of $10,000 and upwards. You may repay the contract in full before the term ends. Rental payments are fixed throughout the life of the lease.