Chattel Mortgage
A Chattel Mortgage is a type of finance used by business to purchase new/used vehicles and other types of business equipment. A Chattel Morgtage is classed as a cash sale, so the goods automatically become yours on purchase & the finance company takes a mortgage over the chattel.
The benefits of a Chattel Mortgage
- Interest charged & depreciation of the asset are tax deductible
- Flexible terms between 12 – 60 months, with fixed monthly repayments makes budgeting easier
- Fixed interest rate
- After full payment of the Chattel Mortgage agreement, ownership of the goods is transferred to you
- Options to make payments with or without a balloon payment at the end of the contract
- Ability to finance the full purchase price or alternatively, you can include an upfront deposit or trade in to reduce the monthly commitment
- GST payable on the goods is able to be claimed back as a full input tax credit on your next business activity statement (BAS)
Commercial Hire Purchase
A Commercial Hire Purchase (CHP) is a type of finance used by business & individuals to purchase new or used vehicles & equipment. With a commercial hire purchase the lender holds title of the security until all monies owing are paid.
The benefits of a Commercial Hire Purchase (CHP)
- Interest charged & depreciation of the goods is tax deductible
- GST may be fully claimable on your next BAS dependent upon how you account for your GST – cash or accrual basis
- Flexible terms of 12 – 60 months, with fixed monthly repayments
- Fixed interest rate
- Option to make payments with or without a balloon at the end of the contract
- After full payment of the CHP, ownership is returned to you
- Ability to finance the full amount of the purchase price. Alternatively, you can choose to put in a deposit or a trade in to reduce the monthly commitment
Novated Lease
A Novated Lease is a method of salary packaging a car under which an employee leases a car & their employer agrees to take on the employees obligations under the lease, paying the monthly rentals from the employees pre-tax income, thereby salary sacrificing that portion of their income.
The benefits of a Novated Lease
For Employees
- Choice. You choose the car that best suits you
- Control. You control the car, including care & maintenance
- You can take the vehicle & lease with you if you change jobs
- Financing of the vehicle is made with pre tax dollars
- You retain any equity built up in the vehicle
- Vehicle may be leased for 100% private use in Australia
For Employers
- No excess vehicles if an employee leaves
- Employer can provide more attractive remuneration packages, thereby attracting the employees they want
- Time and cost associated with management & disposal of the vehicle are not your responsibility
Lease
A lease enables the customer to have the use of their business equipment, whilst the financier retains actual ownership of the equipment.
The benefits of a Lease
- Fixed interest rates
- Flexible contract terms
- Fixed monthly lease rentals
- A balloon is applied to a lease, lowering monthly repayments
- Your equipment does not sit on your balance sheet as an asset or liability
- Tax deductions for the lease can be claimed
- Ability to make advance lease payments for tax deduction or cash flow purposes
- At the end of the lease the customer can either repay the balloon amount & take ownership of the equipment, sell the equipment or refinance the balloon and continue the lease
Antzpantzfinanz can help secure you a great rate. To find out more call us today on 0418 511 519.