A Operating Lease is a contract where the Lender purchases the equipment and leases/rents to you for an agreed term and rental. Tax deductions are available for the lease rental payments, while the Lender providing the lease retains ownership of the item, and can claim depreciation.
Ideal for companies and business professionals who need motor vehicles, trucks, earth moving, agricultural, industrial plant or professional equipment, with the flexibility of being able to hand it back at the end of the finance term.
A residual amount is assigned to the lease per taxation guidelines, which is based on the useful life of the asset. At the end of the lease period, the Lender owns the equipment and may choose to sell it in the open market.
G-Force Finance Solutions offers competitive finance and leasing agreements on both new and used assets. We have access to some of Australia’s premier finance & leasing products from over 15 of Australia’s trusted financial lenders and can recommend the right agreement to suit your circumstances.
Operating Lease Features
Operating Lease is a business use loan product, available over a range of terms, and with a range of different ‘residual’ payment options depending on the length of the term. The lender owns the vehicle from day one, and the financier uses it as security over the loan.
Various Loan Terms & Lenders
With our broad access to over 15 Lenders, we have access to flexible terms from 2 to 7 years across a wide range of products. You can borrow 100% of the cost upfront, including registration, insurance and on-road costs. Interest rates are fixed for the entire term offering peace of mind.
The Lender purchases the equipment on behalf of the customer, who then leases the asset back from the Lender and pays a fixed monthly lease rental for the term of the lease. Operating lease agreement reduces administration for the end user and allows them to simply hand the vehicle back at the end whilst paying one simple monthly repayment. These are generally efficient for organisations that are running at least a few cars due to the administration savings.
Preserve Cashflow & Capital
Preserves ‘working capital’—no deposit, 100 per cent finance. Easier cash flow management—payment terms can be matched to income flows. Item being financed is normally sufficient security for the finance and, therefore, won’t tie up other assets.
GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where the customer is registered for GST, they can claim some or all the GST contained in the lease rental and the residual value as an input credit on their next Business Activity Statement. * seek advice from your accountant.
Help you get the Pre-Approval
Our application process is quick & easy. G-Force Finance Solutions has national coverage, systems and advisers that can get your application approved fast. If you haven’t yet found the right vehicle or asset, that’s ok as we will help organise pre-approval, knowing exactly what you can afford, so you can find the right asset with peace of mind.
Important Factors to Keep in Mind
Just as you would with a standard loan, it’s important to work out how much you can afford to borrow on your loan. Work out how much you need to borrow and create a budget to work out how much you can afford to pay back each month.
It’s also worth considering the tax benefits. You may be able to claim tax back on the repayments you pay on the loan, on the assets running costs. The GST component may also be tax deductible for each repayment made throughout the term.
We are ready when you are ready to make the move – your advisor will prepare the paperwork, liaise with the lenders every step of the way to the settlement.
Our advisers will discuss your circumstances with you, such as your income, outgoings, future and savings, together with the end to end process and steps involved – we seek to understand your short, medium and long term goals.
Visit our Loan Calculators today and take the next step by clicking the “Quick Quote” Button and our finance advisers will then get to work on sourcing you a tailor-made package from our trusted panel of lenders and will work tirelessly to get you the right solution.