Financing Vehicles and Equipment

You might need a new harvester but the last thing you want to do is dive into your capital in order to acquire it. An Asset Finance solution is designed to preserve your valuable working capital, and it can be structured to meet your particular cash flow requirements.

With no deposit required, a fixed interest rate, and the option to make repayments only in the months when you receive income, Asset Finance can offer the certainty and flexibility you need.

Hire Purchase
A Hire Purchase arrangement is an agreement to purchase equipment subject to payment terms. During the term of the Hire Purchase Agreement, the financier owns the vehicle or equipment, with ownership automatically transferring to you when you make the final payment.

Finance Lease
A Finance Lease provides 100 per cent financing (no deposit necessary) for the acquisition of equipment for use in your business. It is essentially a rental agreement where the financier owns the equipment, which you then lease for an agreed term and rental amount. You indemnify the financier for the residual value at the end of the lease term.

Operating Lease
An Operating Lease is an agreement to rent equipment for use in your business for a fixed period. It can be an efficient and cost effective financing strategy if you are continually upgrading your vehicles and equipment, or if you are only interested in renting and not owning your asset. At the end of the lease period, you simply return the vehicle or equipment to the financier, subject to return conditions, without obligation for the residual value.

Equipment Loan
An Equipment Loan is a loan agreement in which you borrow funds to purchase equipment. You provide security for the loan by way of a mortgage to the lender (Commonwealth Bank) over the equipment financed.

Fleet Leasing and Management
If you operate more than five vehicles (either in the form of a tool of trade fleet, or employee salary packaging arrangements), you may like to consider our fleet management services.

What are the benefits of Asset Finance?

Capital and credit conservation
Working capital and lines of credit are preserved for use in your business.

Flexibility
Payments can be structured to suit your particular cash flow pattern.

Simplicity
Standard procedures are used to simplify approval and documentation, which means a quick turnaround between the initial inquiry and funding.

What’s best for your business?
That depends on the nature of your business and the type of equipment you need. You should also consult with your accountant and/or solicitor to discuss the tax and accounting implications arising from different asset financing options.

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. Employers and employees are encouraged to seek professional advice on all aspects of novated leasing before proceeding. Applications are subject to the Bank’s normal credit approval. Fees and charges are payable.