A finance or asset lease allows the customer to have the use of business equipment and benefits of ownership, whilst the financier or lender retains actual ownership of the equipment.
In return for funding and owning the business equipment, the financier or lender receives a fixed monthly rental payment for the agreed term of the lease.
Asset and Finance leases are commonly referred as car leases. Auto leases and vehicle leases.
- Flexible contract terms
- Fixed interest rates
- Fixed monthly lease rentals
- Costs are known in advance
- A residual can be applied to a lease, lowering monthly payments
- Your equipment does not sit "on your books" as an asset/liability
- Tax deductions for the lease payments can be claimed
- As the GST contained in the vehicle's purchase price is claimed back by the financier, only the equipment's price exclusive of GST is financed, lowering monthly payments
- Ability to make advance lease payments for tax deduction or cash-flow purposes
GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where the customer is registered for GST, they can claim some or all of the GST contained in the lease rental and the residual value as an input credit on their next Business Activity Statement.
The customer can claim the lease rentals as a tax deduction.
To find out more call Green Light on 1300 939 675 or email info@greenlightonline.com.au