Loan Products
Equipment Leasing
Equipment Leasing is a business loans facility which is suitable for the many businesses that use the accruals method of accounting. Referred to as an off-balance sheet loan, leasing can improve balance sheets as the asset being financed is entered on the balance sheet of the lender. The equipment is ‘off’ the balance sheet of the borrower as it not entered as an asset/liability on the borrower’s balance sheet.
equipment leasing Comparison
Compare Equipment Leasing Interest Rates with Other Financing
In this interest rate comparison table, we’ve compiled our current achievable interest rates for leasing and other lending products in our portfolio. Compare repayment estimates on leasing with Chattel Mortgage, CHP and Rent-to-Own to assist in your decision-making. Simply enter the loan amount and term you want and the table auto-calculates repayment estimates. Then contact us for a specific quote.
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Disclaimer: This interest rate comparison table is provided solely for the purpose of comparing the interest rates currently applicable on different commercial finance facilities. Use of the calculator element of the table is not an application for lending and any results displayed are not an offer of lending or an indication that a loan application has been approved. Broker and lender fees and charges are not all included in the calculations. A leasing or other loan offer made to you may be different in repayments and interest rates from those displayed.
Today's best rate
Finance Equipment From
6.85 % Fixed
* The interest rate is calculated on a secured loan for business use, effective 09/06/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
Today's best rate
Finance Equipment From
6.85 % Fixed
* The interest rate is calculated on a secured loan for business use, effective 09/06/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
What Is
What Is Equipment Leasing?
It is advisable to refer to their accountant to discuss the suitability of leasing for their individual business structure
Despite the technical terminology, leasing is straightforward in terms of a fixed lease period and fixed lease payments over the term of the lease.
As many organisations utilise leasing for the purchase of equipment, there are many lenders actively competing for leasing. We save you the time and hassle of having to canvas the entire market to get the best deal. We bring the lenders to you!
- Access to Leading Leasing Providers
- Non-Bank Lenders
- All Major Banks
- Industry-only Lenders
- Specialist Leasing Lenders for Your Sector
- Experts that streamline the process
Machinery Leasing
Explainer and Features
- The lender effectively purchases the equipment and leases it back to the borrower at a fixed monthly lease payment.
- The borrower has full use of the equipment from time of purchase/finalising the loan and is responsible for all operating costs.
- The asset is entered on the lender’s balance sheet.
- The term of the lease is fixed, usually up to 7 years.
- The interest rate is usually fixed for the term of the lease.
- The monthly lease payment is fixed.
- GST is charged and claimable on the lease payments.
- The lease payments are tax deductible as an operating costs.
- A residual is optional. This is a percentage of the purchase price payable at the end of the lease to take ownership of the equipment.
- More information on leasing here
Wide Range
Heavy Vehicle Leasing
A wide range of equipment is suitable for leasing across construction, manufacturing, heavy vehicle loans and many others. The decision as to whether leasing is the most beneficial form of loan is more dependent on the commercial structure, accounting method, balance sheet approach and treatment of tax and GST.
Sourcing Cost-effective
Equipment Leasing
Rather than spend your valuable time contacting multiple banks and lenders for quotes on your equipment leasing, just contact us. We’ll provide you with contact details lenders that match your requirements.
Connect with us for lenders that may assist you with equipment leasing.
FAQs
Equipment Leasing FAQs
With equipment leasing the lender retains ownership of the goods being leased. As such the lender would claim the GST on the purchase price. GST is then charged on the monthly lease payments excluding the interest portion of the payment. The GST is claimed on the relevant BAS return by the borrower.
There are two types of accounting method used by business – accruals and cash accounting. With the cash method the payments received and payments made by the business are recorded in the accounts on the date of the transactions. With the accruals method, the accounts payable and accounts receivable are entered into the books or accounts when the received or issued. Invoice amounts are entered when the invoice is issued to the customer. Bills owing are recorded as debits when received whether paid at that time or not.
Equipment leasing interest rates displayed by lenders would typically be the best rates available, for new goods and for businesses with good credit. In order to receive an exact interest rate, an application would need to be processed and quote requested from a lender. Interest rates offered are assessed based on the application details and the goods being acquired. Rates may vary on equipment based type and industry.
The lender retains ownership of goods under lease until all payments are finalised. When all the monthly lease payments are finalised and the residual paid out, the lender transfers ownership to the borrower.
Yes. Leasing is widely used for the purchase of motor vehicles, both new and used, of all types. The suitability of a finance product is considered in regard to aspects of the borrowing business. These aspects can include the accounting method, approach to the balance sheet, treatment of GST and tax and general financial objectives.
To select the most appropriate type of finance, business owners are encouraged to refer to their accountant or financial advisor. The decision is based on compatibility and suitable of leasing or another product for the objectives of the business; the method of accounting used; the approach taken by the business to taxation including GST; and the balance sheet approach.
Yes. Lease payments are classified as a business expense by the ATO and are tax deductible. The payments made in a financial year are treated as deductions when the annual accounts and business tax return is prepared at the end of the financial year.
The interest rate on equipment leasing is a fixed interest rate. The rate remains fixed and unchanged for the full term of the lease. The rate does not vary or change when the Reserve Bank makes changes to the official cash rate or when the lender changes the rates offered.
The selection of asset acquisition finance products attract different interest rates which may be used as a gauge as to the cost of the loan. The lowest interest rates usually apply to Chattel Mortgage and Hire Purchase. The interest rate for leasing is typically higher than these but lower than Rent to Own.
Yes. Refinancing is the process of replacing an existing finance arrangement with a new loan. When refinancing is applied for, the business owner may select which is the most appropriate form of finance for their business and the goods being refinanced.
Being registered for GST is not a pre-requisite to being eligible for commercial loans including leasing. Applicants must hold a current ABN and produce identification.
The minimum and maximum loan amounts for leasing vary across the lending market and will depend on aspects of the individual finance application. Lenders will have their own guidelines as to the minimum and maximum amounts they offer in leasing. The assessment of the application in the approval process will also determine the leasing amount approved for an individual business.
Yes. Leasing is widely used for financing both new and used vehicles of all types. The age and condition of the vehicle will form part of the application approval process and this may influence the interest rate offered, the leasing term and the loan amount approved.
Leasing rates can vary depending on the assets being financed, the industry sector and specifics of the borrowing business. The interest rate offered by a lender for motor vehicles may vary from the rate offered for equipment.
