FINANCE LEASE

A Class Business Finance offers finance lease solutions for businesses wishing to lease assets for use by their company.

What exactly is a finance lease? 

A finance lease refers to the process of a financier purchasing an asset that your company then leases for an agreed-upon period of time via repayments.

What is the purpose of a finance lease?

A finance lease is often used by companies who do not wish to purchase an asset outright, but instead would like to generate income from the asset while leasing it (often with the purchase of the asset occurring at the end of the loan term).

What does a finance lease work?

With a finance lease, you lease an asset from a financier until the end of your contract, at which time you may then purchase it for a pre-agreed price. This price is referred to as the Residual Value, and is predetermined by the ATO. While you are leasing the asset from the financier, they own the asset. With this type of finance solution, you are not able to make a deposit on the finance price.

If you take out a finance lease with A Class Business Finance, the interest rate on the loan is fixed, as are the repayments during the lifetime of the loan. All leases must have a Residual Value, which is predetermined by the ATO and is a percentage of the original amount financed, depending upon the asset.

At the end of the finance lease, you have several options available regarding how to proceed. You may choose to purchase the asset from the financier for the pre-determined Residual Value, or alternatively, you may choose for the Residual to be refinanced into a new loan.

Finance lease repayments may provide benefits such as tax deductions, so it is important to discuss the possibilities with your accountant.

How can we help you? 

Here at A Class Business Finance, we aim to simplify the finance process, and ensure you get the right type of loan for your needs. With over a three decades of experience in the finance industry, we offer competitive rates and solutions tailored to your business. Our team of experts take an active interest in understanding your requirements and future goals, and we hope to work with you in become trusted finance partners in your business.

If you’re interested in chattel mortgage options, why not arrange an appointment with our friendly staff today, and see for yourself what our A Class service is all about?

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