Equipment finance can be a great way of getting the asset you need now without having to outlay large amounts of cash straight away. It can help with cash flow and potentially provide tax benefits for your business.
We leverage our vast experience, high-quality underwriting team, and expansive network to solve your equipment financing challenges. From simple transactions to hard-to-place funding, we specialise in matching the best financing solutions to our customers’ needs.
We specialise in providing equipment finance solutions in the following industries:
Transportation
Moving Ahead, Driving Prosperity.
Agriculture
Cultivating Success, Harvesting Growth.
Construction
Building Futures, Pioneering Projects.
Earthmoving
Shaping Land, Transforming Visions.
Chattel Mortgage
A Chattel Mortgage is a commercial loan that provides funds to your business to purchase an asset (new or used). Your business retains ownership of the asset, and the financier accepts the asset as security for the credit.
How does a Chattel Mortgage work?
Under a Chattel Mortgage, the financier advances funds to your business at the time of the purchase. The financier takes a “mortgage” over the asset as security for the loan by registering their interest over the asset with the Personal Property Security Register (PPSR).
The financier removes the security interest once the contract expires. In Front applies a commercial approach, understanding that circumstances, many times not
the fault of the client, can impact their ability to obtain finance. Our team works with the
client to understand their requirements and provide a tailored solution.
Benefits of a Chattel Mortgage
To find out more about Chattel Mortgage finance, get in touch with us at In Front Australian Business Solutions.
Finance Lease
A finance lease is a tax-effective method of financing the full value of an eligible new or used asset. A finance lease also enables your business to have the use of business equipment while the financier retains actual ownership of the equipment throughout the lease.
How does a Finance Lease work?
The financier (Lessor) purchases the equipment on behalf of your business (Lessee), which then pays the Lessor a fixed monthly lease rental for an agreed lease term.
Finance leases will have a residual value at the end of term, that the Lessee is responsible to pay. At the end of the lease, you can pay a the residual on the lease and take ownership of the equipment.
Alternatively, you can sell the equipment and repay the residual or re-finance the residual.
The financial risk or reward sits with the Lessee (you).
Benefits of a Finance Lease:
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Fixed interest rates and monthly rental repayments.
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Tax deductions for the lease payments may be claimed subject to circumstances.
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Flexible contract terms up to 5 years.
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No capital outlay is required.
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If the asset is sold at the end of the term, any surplus from the sale of the asset over and above the residual value is paid to the Lessee (you)
Looking to get more information about finance leasing?
Benefits of an Operating Lease:
- Fixed interest rates and monthly rental repayments.
- Tax deductions for the lease payments may be claimed subject to circumstances.
- Flexible contract terms up to 5 years.
- No capital outlay is required.
- Maintenance & running costs may be able to be incorporated into the lease payments (fully maintained operating leases).
- Provided the asset condition & usage are within terms, there is no financial risk on asset disposal to the Lessee (you) at the end of term
Ready to speak to someone about operating leases?
Operating Lease
An operating lease is like a rental, whereby you are paying to use the asset but doesn’t don’t own the asset. Some operating leases incorporate the maintenance & running costs into the lease payments and these are known as Fully Maintained Operating leases.
How does an Operating Lease work?
Similarly with a Finance Lease, The financier (Lessor) purchases the equipment on behalf of your business (Lessee), which then pays the Lessor a fixed monthly lease rental for an agreed lease term.
There are certain conditions imposed relating to the assets usage & condition over the lease term and in Fully Maintained Operating Leases, maintenance & running costs are incorporated into the lease payments.
Unlike a Finance Lease, there is no ownership option at the end of the lease term. Options at the end of term are return the asset, continue to lease or update for new equipment & new lease.
The financial risk or reward sits with the Lessor (Financier), provided that the asset’s condition & usage are within agreed terms of the lease.