Lease finance is often also referred to as Asset finance, Equipment finance or simply leasing.There are four main products used for lease financeHire Purchase – the customer hires the equipment until they make the final payment, at which time ownership transfers into the client’s name. interest and depreciation are usually tax deductible.Chattel Mortgage – the customer owns the asset from the start. The lender takes a charge over the asset. Interest and depreciation are usually tax deductible.Finance Lease – the asset is owned by the lender. The client is basically leasing it from the lender and does not take ownership. Rental payments are tax deductible, but not depreciation as the asset is not owned, but leased.Novated Lease – the asset is owned by the lender. Rental payments are made by the employer. Rental payments are usually tax deductible.
With all of the above products the term is normally limited to 5 years.Contact us for your own personal needs assessment