asset finance

An asset refers to any item that depreciates over time, such as a vehicle, equipment, fit-outs, or plant and machinery used in a business. Asset finance is a funding option designed to help business owners acquire the necessary tools and machinery for their operations without the burden of a large upfront payment. Having access to the right asset at the right time is crucial for your business’s growth. Whether it’s a new or used vehicle, equipment, or machinery, financing these assets can be an ideal solution when the cost of purchasing outright exceeds your budget. Typically, asset loans are secured by the asset being financed, meaning no additional security is required in most cases.
hire purchase
The business makes regular payments and owns the asset at the end of the term.
Chattel mortgage
The business owns the asset from day one, but it’s used as security for the loan.
finance lease
The lender owns the asset, and the business pays to use it for a set period

types of assets that can be financed

Businesses across various industries have unique asset needs, and many of these can be financed through the options mentioned earlier. Below are some of the most popular asset finance options available.
Shop/Office Fit outs
Trailers
Excavator
Cars for business
Buses
Trucks
Forklifts
Scissor lifts
Restaurant Equipment
Utes
Loaders
Vans

tax benefits?

Each asset finance structure offers different methods for claiming tax deductions. Depending on the type of finance you select, you may be eligible to claim deductions for depreciation, interest, or lease payments.
chattel mortgage
You will be able to claim the interest payment of financing the loan as well as the depreciation on the assets because you are immediately the owner of the asset at the beginning of the finance.
hire purchase
Since you will only become the owner of the asset after making the final payment, you won’t be able to claim depreciation. However, you can still claim the interest cost that comes with financing the asset.
Finance lease
Operating and Finance Lease payments are fully tax-deductible. However, you won’t be able to claim the depreciation cost of the asset as you are not the owner of it.
Each asset finance structure offers different methods for claiming tax deductions. Depending on the type of finance you select, you may be eligible to claim deductions for depreciation, interest, or lease payments. Since each finance structure offers different tax deduction options, we recommend seeking independent tax advice to determine the most suitable finance structure for your business.

are you eligible?

Must have an active ABN
Business is GST registered
Trading for at last 6 months

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