• Chattel Mortgage
  • Lease
  • Commercial Hire Purchase
  • Novated Lease (Company Cars)
  • Consumer Loans
  • Rental
  • Mortgages

 

 

 

Chattel Mortgage

Chattel Mortgage is similar to a Commercial Hire Purchase in the sense you can finance goods over a set term with a nominated balloon amount (subject to financier allowing a balloon on your intended purchase).  It is essentially a charge over goods to be financed. 
 
Benefits:
  • Fixed monthly repayments for the term of the loan
  • Flexibility with terms and balloon amounts
  • Upfront cash deposit can be paid to reduce the amount financed
  • Tax Benefits, GST Credit, Interest Charges & Depreciation*
  • Chattel Mortgage allows businesses that operate under a ‘cash accounting’ basis to claim the full input tax credit from GST incurred expenses immediately.
 
Consider paying GST upfront as a deposit and claiming it back in your next BAS to finance less AND pay less interest
  • Potential to remove the vehicle fleet from your balance sheet.
  • Eliminating administration and maintenance costs involved in managing a fleet.
  • The ability to negotiate payment of vehicle running costs with your employees.
  • Freedom for your employees to choose their motor vehicle while enjoying the benefits of a company car.
  • No on-going company responsibility for the vehicle should an employee leave.
 

 

 

 

 

 

 

 

 

 

Novated Lease (Company Cars)
 
In recent years, Novated Leases have become a popular alternative for businesses wishing to provide their employees with motor vehicles.A Novated Lease is effectively an agreement between the employee (a lessee), their employer and the finance company (the lessor).It operates by creating a Finance Lease Agreement (refer to the Lease Agreement Section on this page) between the employee and the Financier. A Novation Agreement is then entered between all parties, which transfers responsibility for the lease rental commitment to the employer during the lessee's period of employment. On the employee leaving employment, the novation ends, with ongoing responsibility for the lease returning to the employee.As motor vehicles acquired this way are leased by the employee, there are benefits for your business and your employee. These could include:
  • Fixed Monthly repayments for the term of the loan
  • Terms available from 12- 84 months
  • Flexible balloon amounts from 5%-60% 
Consumer Loan
 
Consumer loans available for motor vehicles, bikes & caravans/ motor homes.  Consumer loans are generally loans suited to personal use, although used for personal use, depreciation and interest charges could be tax effective claims if the car/boat is for business or work related usage.
 
Benefits:
Setting a balloonamount allows you to reduce your monthly repayments and better balance your budget requirements.  At the end of the term you have the option to pay this amount in full, to re-finance the balloon amount and continue paying off the asset over a new loan period (subject to approval conditions at that time).  Alternatively you may choose to upgrade , call CorpLease to see how this option works.

 

 

  • Fixed monthly repayments for the term of the loan
  • Flexibility with terms and balloon amounts
  • Upfront cash deposit can be paid to reduce the amount financed
  • Tax Benefits, GST Credit, Interest Charges & Depreciation*
Commercial Hire Purchase

Hire Purchase is a loan agreement, but differs from Finance Lease in that the goods automatically become yours once all terms of the agreement have been completed. Ownership of equipment rests with the financier, until final payment is made.
You also have the option of including an upfront deposit or trade-in to reduce your monthly commitment, while a balloon payment may also be set at the end of the term (much like a lease residual) to acknowledge the equipment's end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement.
 
Benefits:
Set the term of the loan inline with the useful life of the equipment or vehicle ... ask yourself "how long am i going to keep these goods?"
*Please speak with your accountant or financial advisor to confirm all tax benefits, the below is to be used as a guide only. 
As of 1st July 2012, CHP is now deemed a “fully taxable supply” attracting GST to interest charges & fees which are then included in the monthly repayment, however this GST is claimable in full up front on your next bas claim along with the GST charged on the price of the goods, provided you are a business registered for GST.Whatever the requirement, CorpLease can set a repayment schedule to suit your financial needs.​
  • Fixed monthly repayments for the term of the loan
  • Easy Accounting as rental instalments are tax deductable, no need to work out interest charges, depreciation like other contracts*
Lease

Hire Purchase Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental amount. A residual value is determined by the Australian Tax Office, to reflect the equipment's value at the end of the term.
The goods are owned by the finance company, but the lease rentals are tax deductible to you, as long as the goods are used in connection with producing assessable income.
At the end of the lease you may purchase the asset at the residual value specified on the loan contract, trade it in on a replacement or extend the lease a further term.
 
Benefits:
By entering into a finance lease agreement you may be able to prepay extra lease rentals should you need an extra tax deduction in the current financial year.
  • Rental repayments are 100% tax deductible
  • Fixed Monthly repayments
  • Flexibility to upgrade goods during the term or at expiry
  • Off-balance sheet finance arrangement
  • Rentals are 100%  tax deductible
Rental

Hire Purchase Finance Lease is a form of rental agreement under which you lease your nominated asset for an agreed term and rental Allows businesses the ability to upgrade goods during the rental term or at expiry. Rental payments are treated as a 100% tax deductible expense item when the equipment is used for business purposes.   At the end of the Rental term, you have a number of choices. You can purchase, continue renting, upgrade or return the equipment.
 
Benefits:
Consider funding printers and other smaller assets on an easy to account for monthly rental.
Mortgages

A mortgage is a loan used for the purchase of Residential or Commercial property or vacant land.  It can be applied to owner occupied or investment properties such as homes, units, factories, offices and rural farms.
 
Construction loans for Residential and Commercial properties also come under this area of finance.
 
 

02 8355 3910   |   0421 980 705   |    enquiries@corplease.com.au

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