Finance Definitions:
Financial Lease
Most commonly used by businesses, this product allows the customer to use up-to-date equipment without tying up large amounts of capital.
The lease can be tailored with rentals in advance or arrears, flexible terms (up to four years) and a residual value that is set to reflect the asset’s use and ATO guidelines. GST is included in each rental and the residual value, and if your business is registered for GST, you may be able to claim an input tax credit for this GST.
Chattel Mortgage
This product is most commonly used by businesses on cash based accounting.
With a Chattel Mortgage, you own the asset and you can tailor your payments by selecting the term (up to four years) and incorporating a larger final installment and/or upfront deposit.
Other flexible arrangements to match cash-flow can also be arranged, including seasonal payments and/or any GST refund being paid into the loan to reduce monthly installments and interest charges.
The interest rate is fixed for the term of the loan and if the equipment is used for income generating purposes the interest charges and depreciation on the equipment may be tax deductible. If you are a business registered for GST you may be entitled to an input tax credit with respect to your acquisition of the equipment.
CHP
This product is most commonly used by businesses on accrual based accounting to finance equipment or by individuals who use the equipment at work.
With a CHP you can tailor your payments by selecting the term (up to four years) and incorporating a larger final installment and/or an up-front deposit.
Other flexible arrangements to match cashflow can also be arranged, including seasonal payments and having your GST refund entitlement (if any) paid into the loan to reduce monthly instalments and interest charges.
The interest rate is fixed for the term of the loan and if the vehicle or equipment is used for income generating purposes, the interest charges and depreciation on the asset may be tax deductible. If you are a business that is registered for GST you may be entitled to an input tax credit with respect to the GST incurred on your acquisition of the asset.
In conjunction with our Finance Partners, Matrix 7 is pleased to be able to offer our clients very competitive financing facilities to purchase or lease hardware technology. We can assist you by determining how much you can borrow.
Why lease your equipment?
Preserve your capital - keep the cash flow running smoothly, with fixed payments over your choice of term periods and no residual or balloon payments.
Reduce your risk - it’s hard to keep up with the rate at which technology becomes obsolete. So let us take on that risk for you and you can benefit from regular upgrades.
Flexible for your needs - when hardware is included, your rental equipment is off the balance sheet, and tax advantages may be possible. We’re flexible, so your accounting can be too.
