Financial Lease
A Financial Lease is a loan product where the borrower has use of the truck or trailer, whilst the lender retains ownership of the asset.
As the truck or trailer is ‘owned’ by the lender, they effectively rent or lease the asset to you under set monthly repayments. Once the loan has been repaid back, the title is then passed over to the borrower.
Financial Lease
Loan Terms
Financial Lease
Have a question?
We’ve included answers to the most common questions on financial leases below.
Financial Leases terms can vary from 1 to a maximum of 5 years. Generally financial leases require a balloon or residual payment at the end of the loan term. This can be from $1 to 40% of the value of the asset. The loan term can vary based on your budget and repayment comfort.
As Financial Leases are secured against the truck or trailer, they usually offer lower interest rates than unsecured business loans. With many commercial lenders offering interest rates below 5% and loan terms up to 5 years, this allows ABN holders to purchase newer assets as stay within their budget. Interest rates for financial leases are determined upon each application and take into consideration the age of the truck or trailer, the loan amount, your credit rating / score and overall application.
Whether you’re buying through a private sale, auction, social media or online marketplace, a financial lease is available. Some lenders may require a mechanical or visual inspection to verify the make and model and will provide a PPSR (personal property security register) Report to verify whether there the truck or trailer is encumbered to another financier, stolen or a repairable write off.
Traditionally truck finance is offered as either a Chattel Mortgage, Lease or Unsecured Business Finance is also available to allow for purchases of trucks and trailers to assist in your business.
Financial Lease options are offered either as a Full Doc (Tax Returns) or Lite Doc (No Financials) however remember, the more information you can provide, the better result you can get. Although you can secure a chattel mortgage loan with very little financial information, providing up to date Tax Returns, BAS or Bank Statements can offer a wider range of lenders to choose from.
No deposit is usually required for a financial leases and as long as you work around your budget, you can borrow for extras if needed such as loan protection cover, truck warranty or insurance.
Adding a deposit however will reduce the loan amount required, monthly repayments and total interest payable.
As long as we have the correct information including income, you could have an answer the same day.
Yes, there may be taxation benefits with financing through a Financial Lease.
Some benefits include:
- Loan Repayments – As you are ‘leasing’ or ‘renting’ the truck or trailer from the lender, your monthly loan repayments can be tax deductible.
You should consult your tax professional regarding Financial Leasing benefits.
WHAT CUSTOMERS SAY ABOUT US
Financial Leasing is available throughout the Gold Coast, Burleigh Waters, Robina, Southport, Nerang, Upper Coomera, Varsity Lakes, Brisbane, Logan, Springwood, Northlakes and Ipswich, Toowoomba