Services · Business
Asset & Equipment Finance
Need a ute, a van, machinery or a full fit-out for the business without draining your cash? Asset finance spreads the cost over the life of the gear and keeps your working capital where it belongs. The trick is picking the right structure for tax and cash flow.
The main ways to finance an asset
There are a few structures, and the best one depends on how you want to handle ownership, GST and tax. Here's the plain-English version.
- Chattel mortgage: you own the asset from day one and finance it, popular with businesses claiming GST and depreciation.
- Hire purchase: the lender owns it until your final payment, then it's yours.
- Finance lease: the lender owns the asset and leases it to you for a set term, with full use throughout.
- Novated lease: a three-way deal for a car, paid from an employee's pre-tax salary through their employer.
Balloon payments and cash flow
Many asset loans use a balloon, a lump sum left owing at the end of the term. It lowers your monthly repayments but leaves a bigger final payment to refinance or pay out. On a vehicle that balloon might be twenty to fifty percent of the price. Handy for cash flow, worth planning for so it doesn't surprise you at the end.
Loop in your accountant on tax
The tax and GST treatment differs between owning the asset and leasing it, and the instant asset write-off only applies to ownership structures. I'll get you the finance, but talk to your accountant so the structure matches your tax position.
What lenders look at
- How long your ABN and GST registration have been active.
- The type and age of the asset, since newer gear is easier to finance.
- Your deposit or trade-in, if any.
- Your credit and business trading history.
Asset finance often sits alongside a property purchase for business owners. If you're also buying premises, the commercial property page covers that side, or just book a quick call and we'll sort both.
Need equipment or a work vehicle?
Tell me what you're buying and I'll find a structure that suits your cash flow and your accountant.
Frequently asked questions
What's the difference between a chattel mortgage and a lease?
With a chattel mortgage you own the asset from the start and finance it, which suits businesses claiming depreciation and GST. With a lease the lender owns it and you pay to use it. Your accountant's advice on tax usually decides it.
Can I finance a used vehicle or second-hand equipment?
Often, yes. Lenders look at the age and type of the asset, so older gear can mean a shorter term or a larger deposit, but plenty of used assets are financeable.
Do I need a big deposit for asset finance?
Not always. Many deals are financed with little or no deposit if your business trading and credit are solid. A deposit or trade-in can help the rate and approval, especially for newer businesses.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
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