Leasing
Leasing, it’s all about managing your cash flow. Leasing provides SME’s a solution to assist you and your business move through the various stages of growth and acquisition.
Accrutus Capital Management understands there are many demands on your cash flow and purchasing the equipment to get the job done is crucial in providing the right product and service to your customers.
Compare the cost of leasing versus buying and take into account the impact of tax, interest, depreciation and inflation for optimal benefits to your business.
How leasing can help you
- Save your cash for other core business functions
- Allow off balance sheet funding to maximise borrowings and tax deductions
- Update to the latest technology for improved efficiencies
- Finance 100% of the purchase including GST, installation, delivery and setup costs
- Reduce your repayments by selecting a residual at the end of the lease
Types of leasing
Finance lease - The finance company retains ownership of the equipment / vehicle until the lease period expires. Ownership is transferred to customer on payout of any residual at the end of the term. The lease is recorded on the balance sheet as capital expenditure and depreciation claimed by the Lessee. GST is not financed, but added to the monthly payments, can be claimed thru BAS. Interest payments are fully tax deductible if used for business purposes.
Operating lease - This is a highly flexible option where you enjoy the benefits of using the equipment without the responsibility of ownership. There is no residual or balloon and the equipment can be returned, upgraded or re-rented at the end of the term. Suitable for equipment that has a high technological obsolescence. Installments are 100% tax deductible and are not recorded on the balance sheet; depreciation is claimed by the Lessor. The GST is not financed and is added to the monthly payments, can be claimed thru BAS return.
Commercial Hire Purchase - CHP Ownership is at commencement of term and finalized on payment of any residual payment. CHP is more flexible than a lease as payments can be adjusted if a deposit is paid and percentage of residual payable at end of lease. The interest payment is 100% tax deductible and depreciation is claimed by the Lessee. The equipment must be for business use and the asset is noted on the balance sheet as expenditure. GST is included in the amount financed, not added to the monthly payments.
Chattel Mortgage - Provides immediate ownership of the equipment however the Lessor retains title until the final payment plus any balloon payments due. The interest payment is 100% tax deductible and depreciation is claimed by the Lessee. The equipment must be for business use and the asset is noted on the balance sheet as expenditure. GST is included in the amount financed, not added to the monthly payments. GST can be claimed back in one lump sum in the next BAS return.
For all your leasing requirements call 02 8860 9529 now or Contact Us.