Asset Finance and Equipment finance is a form of debt finance the helps you purchase assets and equipment you need for your business such as vehicles, heavy machinery, fitouts.
Asset finance is generally provided without the need for a deposit, at 100% of the purchase price. There are 4 main types of finance available for asset and equipment finance.
A Chattel Mortgage is a commercial finance product that can be used by businesses to purchase and take full ownership of a vehicle and depreciate the asset on their own balance sheet. The chattel mortgage payments are the responsibility of the business that owns the vehicle. This can be a sole trader, small business or large company.
Rental Finance is where the financier purchases the asset at your request and rent it back to you for an agreed period. This can be an efficient and cost effective financing strategy if you are continually upgrading equipment or are seeking to minimise asset ownership risks. While the lender owns the asset and you rent it from them, at the end of the term you usually have the option to:
A Finance Lease is when the lender purchase the asset at your request and lease it back to you for an agreed period. You will own the equipment at the end of the term once contractual payments (including any residual value) has been paid.
The Lender will purchase the asset at your request and you are able to buy it from them by paying back in instalments. The Lender will own the asset until you have paid in full, including any balloon payments.