Vehicle & Equipment Finance

With the same care and attention to detail as our private mortgage clients, ACW Finance will assist you in selecting the right product for your vehicle and equipment finance needs. Whether it be vehicles, light trucks or commercials, heavy transport, trailers or forklifts, we have access to a number of lenders that can assist.

Typically this type of finance is used by businesses to acquire assets and equipment that will help them grow. It involves a regular payment for use of the asset over an agreed period of time, therefore avoiding the need to pay the full cost of the asset upfront.

And to make things easier, if you meet certain criteria, the application process can be simplified without the need to provide financial statements and the like, just contact us at ACW Finance to find out more.

Just so you know, the two most common finance options are the Chattel Mortgage and Finance Lease. Each is suited to different commercial circumstances, so when considering your options, you may want to talk to your accountant or tax adviser.

Chattel Mortgage

This popular finance solution is where you own the asset from the outset and your loan agreement is secured by the asset. You can tailor your loan payments by choosing the term — typically up to five years. Other payment options can include a deposit and a larger final installment.

Key Points –

Flexible contract terms ranging from 12 to 84 months (one to seven years)
A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget
Fixed interest rates and monthly repayments
A tax deduction may be available when the asset is used for business purposes
A customer who is registered for GST can claim the GST contained in the purchase price as an input credit on their next Business Activity Statement (BAS)

Finance Lease

This is where the financier owns the asset however you bear the risk of disposal (of the asset) at the end of lease. This type of lease can benefit businesses that need the latest vehicles or equipment without tying up a large amount of capital. You can choose lease payments in advance or arrears and terms up to five years. A residual value is required in line with the asset’s use and the Australian Taxation Office’s guidelines.

At the end of the lease the customer can either pay a residual on the lease and take ownership of the equipment, sell the equipment or re-finance the residual and continue the lease.

Key Points –

Flexible contract terms
Fixed interest rates and monthly lease rentals
Your equipment does not sit "on your books" as an asset/liability
Tax deductions for the lease payments may be claimed
As the GST contained in the equipment's purchase price may be claimed back by the financier, only the equipment's price exclusive of GST is financed, lowering monthly payments

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