Automotive and Business Equipment Finance

Chattel Mortgage

The Chattel Mortgage is appropriate to finance goods for more than 50% business use. You (the customer) take ownership of the goods upon delivery, with the financier able to secure the loan by registering a charge over the goods.

Hire Purchase

The Hire Purchase agreement is simply a contract where the financier (the 'owner') allows you (the 'hirer') the right to possess and use an item of equipment in return for regular payments. When the final payment is made, the title to the goods is transferred to you.

Finance Lease

The financier (the lessor) purchases the equipment or vehicle required by you (the lessee) and is therefore, the owner of the good(s). The financier (lessor) then leases the goods to you under a Lease Agreement, which sets out the residual value of the goods, the term of the lease in months, the monthly rental and the depreciation rate.

Operating Lease (Rental Agreement)

An Operating Lease is an agreement to rent equipment for use in your business for a fixed period. Operating Leases are suitable for businesses that constantly upgrade equipment for reasons such as rapid obsolescence. In an Operating Lease, you hand the equipment back to the Financier at the end of the lease term without obligation for a residual value.

Novated Lease

As an employee of a company, you lease a car from the financier using a Finance Lease. You then sub-lease the car to your employer via an operating lease. Your employer enters an agreement, which makes it responsible for meeting the payments. The ideal arrangement for those who have the option of receiving a car as part of their salary package.


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