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Asset Finance solutions

As a banker, you can offer your client a complete range of solutions depending on their business needs and goals. Each Asset Finance solution has the following features:

  • No deposit required (100% of the equipment may be financed).
  • Repayments can be structured to suit cash flow (including balloons or residual payments).
  • All products are fixed term and generally with a fixed interest rate.
  • Most solutions are paperless and utilise SmartSign technology.

It’s important to remember that the product information is general information only and the client must seek independent, professional tax advice.

Click on each of the following solutions to learn more.

Equipment loan (chattel mortgage)

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The Equipment Loan is suitable for clients looking to finance income-producing vehicles and equipment under a fixed term. It is the most popular Asset Finance solution.

Other key facts:

  • GST is included on the financed purchase price, so there is no GST on repayments.
  • Customers may be able to claim GST input tax credits, depreciation and the interest component of the repayments.
  • The client owns the equipment upfront and the equipment is used as security for the finance.
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Hire Purchase

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The Hire Purchase solution is a fixed-term agreement between the client and the Bank to purchase equipment. After the final payment is made, the Bank transfers ownership to the client.

Key facts:

  • GST applies to payments, residuals, fees and terms charges (interest).
  • Clients may be able to claim GST input tax credits, depreciation, interest and fees included in the Hire Purchase.
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Finance Lease

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Finance Lease is a fixed term agreement where the Bank owns the equipment and the client pays for the use of the equipment over the lease term.

Key facts:

  • Ownership remains with the Bank.
  • Clients may make an offer to purchase the equipment at the end of the agreement.
  • Clients may be able to claim input tax credits for lease payments and other charges that are subject to GST.
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Novated Lease

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A Novated Lease is an arrangement where employees can finance a vehicle for personal use through salary sacrifice.

Key facts:

  • Payments are taken out of the client’s pre-tax salary through their employer.
  • The employee takes the vehicle and the finance commitment with them, if their career leads to other opportunities.
  • Operating costs, such as fuel, tyres and maintenance can be included in the finance.
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Fleet Leasing

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Fleet Leasing finances fleets of 5 vehicles or more through sgfleet and can include full cost management and maintenance.

Key facts:

  • Customised fleet management plans are available to clients.
  • Acquisition and disposal services are also available.
  • Fuel, insurance and on-road costs can be included.
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IT Leasing

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IT Leasing is provided through equigroup to finance technology-based equipment including computers, telecommunications, healthcare and more.

Key facts:

  • The Bank owns the equipment and the customer rents over a fixed term.
  • Terms are fixed, based on the effective life of the equipment.
  • Payments and costs associated with the finance can be tax deductible.
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Energy Efficient Equipment Finance

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Energy Efficient Equipment Finance arrangements encourage clients to acquire qualifying fuel and energy efficient vehicles and equipment.

Key facts:

  • 0.70% discount off the rate you would normally pay to finance the specific equipment.
  • Potential energy savings and increased productivity from the new equipment.
  • Over 500 cars plus a wide range of energy efficient equipment can qualify for the energy efficient discount.
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