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Equipment Finance Options

Equipment Finance Options

Credit One specialises in arranging heavy vehicle loans and leases for businesses and enterprises all across Australia!

Financial options include: Equipment Finance Lease, Novated Lease, Operating Lease, Commercial Hire PurchaseChattel Mortgage and Equipment Rental. 


 

Equipment Finance Lease

An equipment finance lease enables the customer to have the use of their equipment and benefits of ownership, while the financier retains actual ownership. 

How does it work?

The financier purchases the equipment on behalf of the customer, who then pays the financier a fixed monthly lease rental for the term of the lease. 

At the end of the lease the customer pays a residual and takes ownership of the equipment, sells the equipment or re-finances the residual and continues the lease. 


 

Equipment Novated Lease 

A novated lease has become an increasingly popular form of equipment financing in recent years. This option combines many features of more traditional forms of equipment finance to deliver some attractive benefits to both employers and employees. 

A novated lease suits any employee wanting to include equipment as part of their salary package, so long as their employer offers this option. 

How does it work? 

A novated lease is an agreement between your employer, yourself (the employee) and the financier, where the obligation to meet repayments under the finance lease is with the employer. 

Under this arrangement, the employer pays the monthly lease rentals on behalf of the employee, and provides the vehicle for the employee to use as part of their salary package. If employment ceases for any reason, or the lease arrangement is finalised, the novation ceases and the obligations assumed by the employer revert to the employee. 


 

Equipment Operating Lease

Credit One can find an operating lease solution for your business. An operating lease is simply a rental agreement.

You avoid the risks associated with ownership and have no residual value liability. At the end of your operating lease agreement you simply return the equipment and you owe nothing further. This means there is no liability in terms of residual values or FBT for the company following the end of the lease.

How does it work?

Only available through businesses, operating leases are generally the simplest path to equipment ownership for businesses. The benefits of an operating lease versus a finance lease include:

  • Working capital is maintained. 
  • Lease rentals are fully tax deductible if the equipment is used to generate a taxable income. 
  • There is no resale value risk, as the financier will own the vehicle at the end of the operating lease. 
  • Ongoing maintenance costs, including equipment servicing and fuel costs, can be combined in one regular monthly payment (referred to as a "fully maintained operating lease"), which aids the business' cash flow. 
  • The equipment finance cost is know for a fixed period of time, ensuring good budgeting. 

 

Equipment Commercial Hire Purchase 

Commercial hire purchase is also known as a corporate hire purchase, hire purchase or offer to hire, and is often abbreviated as CHP or HP. 

How does it work?

Under a CHP the financier agrees to purchase the equipment on your behalf, and hires it back to you over a set term. While you are not the owner, you have use of the equipment for the term of the contract. 

You take full ownership of the equipment at the end of the term when the total price of the equipment (minus any residual) and the interest charges have been paid in full. 


 

Equipment Chattel Mortgage

A chattel mortgage is a commercial loan product where the customer takes ownership of the equipment at the time of purchase. 

How does it work?

Under a chattel mortgage the financier advances funds to the customer to purchase equipment, and the customer takes ownership at the time of purchase. The financier then takes a mortgage over the equipment as security for the loan. Once the contract is completed, the charge is removed giving the customer clear title to the equipment. 


 

Equipment Rental 

Credit One provides specialised rental finance to all business and industry sectors across Australia! 

Rental is a smarter way to keep up with technology through minimising your investment in assets that rapidly deteriorate. Credit One tailors solutions for business needs allowing you to access a range of innovative services, which embrace the entire IT and asset lifecycle while helping you manage your cash flow. 

How does it work? 

Rental finance is a competitive "off balance sheet" financing tool providing the renter greater flexibility. This option reduces the risks associated with owning technological equipment subject to becoming obsolete within a three to four year period. Items include computer hardware or software.

Benefits of rental finance: 

  • Rental finance is available for most assets. 
  • Ease of off balance sheet reporting. 
  • Your business remains up-to-date with the best technology.
  • Rental finance holds significant tax benefits for your business. 
  • You preserve your cash flow. 
  • Tailored rental solutions are available with the option to trade-up frequently.
  • Master rental facilities are available. 
  • Consolidation of all your hardware, software, installation, maintenance and training. 
  • Flexible end of term possibilities. 
  • Fixed regular payments for ease of budgeting. 

Apply For Your Business Finance or Lease Online - No Waiting!

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