Equipment Loans

Equipment Loans include Commercial Loans, Chattel Mortgage and Bills of Sale. The features include:

• The borrower owns the goods, with the financier taking a mortgage over the goods. The mortgage is released when the loan is fully repaid.
• The borrower may be entitled to claim depreciation on the goods *
• The borrower may be able to claim an Income Tax Credit for the whole of the GST on purchase of the equipment for the period in which the goods were purchased *
• Interest on the loan may be claimed by the borrower as a tax deduction *
• Stamp Duty is payable up front, but can be added to the loan *
• Instalments can be structured as equal monthly or structured to suit your business cash flow or seasonal conditions
• The loan can be fully amortised, or a balloon payment can be structured at the end of the term of the loan. This is not governed by Australian Taxation Office guidelines, but financiers prefer to set a balloon payment which will reflect the real value of the goods at the end of the term. *

*Please check with your accountant or financial advisor.