Finance lease is a rental agreement where we purchase the business equipment or vehicle for you. Then you rent it from us at fixed monthly repayment over an agreed period. You might have also heard it called a lease or equipment lease.
How do they work?
We purchase the equipment or vehicle on your behalf. Then we hire it out to you over a contracted time frame.
You can’t purchase the equipment during the contract and at the end of the lease period we own it. However, if you are interested in purchasing the equipment after your contract is finished, we can talk to you about this.
What sort of business equipment do finance leases best suit?
- Cars, trucks and other motor vehicles
- Industrial equipment
- Earthmoving equipment
What are the benefits of a finance lease?
- You keep your capital – we pay 100% for the equipment so you don’t tie up your funds
- Lower interest rates – as the equipment is secured by mortgage
- Less risk – because you don’t fork out a huge payment to buy the equipment
- Short or long term contracts – from 1 to 5 years
- Easy budgeting – fixed rental and interest so you always know what you’re up for
- Lower monthly payment option – by making a large final payment (balloon) at the end
- Tax advantages – deductions available when used for business
- We pay GST – so you’re monthly payments are lower