Financing For Plant, Equipment And Boats
The following finance options are available for plant, equipment and marine financing:
Commercial Hire Purchase
- Under a commercial hire purchase/asset purchase agreement ownership of the goods purchased remains with the financier until the loan has been fully repaid.
- The purchaser is deemed to acquire ownership as they make repayments therefore they are entitle to claim interest costs and depreciate the asset in line with ATO guidelines.
- Repayments can be fully amortised or a balloon payment can be structured into the facility to allow flexibility with the clientís cash flow.
Chattel Mortgage/Bill of Sale
- A chattel mortgage/bill of sale facility is a product where ownership of the goods rests with the purchaser.
- The financier takes a charge (mortgage) over the goods until the loan is repaid.
- Repayments can be structured to suite the individual needs of the borrower, with the options of fully amortising the debt or including a balloon payment both open to clients.
- For tax purposes, the client claims the interest content of the repayments and can depreciate the asset according to ATO guidelines.
- If a customer is registered for GST, the GST contained in the vehicle price can be claimed as an input tax credit on there next BAS (business activity statement).
- As with all financial options, clients should consult their accountant or financial adviser to determine which product is most suitable for their individual circumstances
- A rental finance facility that allows a lessee to acquire vehicles or equipment over an agreed term.
- Ownership of the goods financed remains the property of the financier.
- The lessee can offer to payout any residual debt at the end of the term and acquire ownership of the assets purchased.
- Rental payments can be structured to suite the individual needs of the lessee with rental payments being tax deductible.
- The client should be directed to their accountant regarding the tax benefits of this type of facility as they relate to their individual circumstances.
Commercial Equipment Finance
We can offer a great range of financial products with a number of lenders for the following equipment:
- Agriculture equipment
- Earthmoving equipment
- Industrial equipment
- Pleasure craft and recreational boats
- Yachts and luxury ocean cruisers
- Ski boats and jet skiís
Business plant and equipment finance is designed to suit companies, partnerships and sole traders.
Depending on the business structure, cash flow requirements, tax considerations or GST registration status, we can tailor a business loan to suit your needs.
Feel free to contact Cairns Car Loans on 07 4041 1997 or 0427 769 323 7 days a week - we would love to help.
Or simply fill in the online enquiry form on this website and one of the team will contact you within 24 hours.