Finance Lease

Finance Leasing is a common finance method used by Australian companies irrespective of size. With ongoing investment by industry in technologies that have obsolescence factors, Finance Lease is more popular for plant and equipment that has a higher retained value at the end of the lease term. Under a Finance Lease residual values are set in accordance with the depreciated value at the end of the lease term. Terms are available up to 7 and 10 years.

Asset Purchase (CHP)

Also known as CHP, this method is used by companies that prefer to amortise the principal debt over the selected term. Financing under CHP can also be structured with balloon payments if required. Conventional terms are up to 5 years.

Term Rental Finance

A large number of companies, including public sector authorities use Term Rental Finance where technology is advanced and ownership is unnecessary. This product allows amortisation of the borrowing, is flexible for upgrading and adding services, and the facility rentals are fully expensed. Obsolescence factors dictate the use of Term Rental as the customer moves to the latest available business technologies. Terms are available to 5 years, and up to 10 years for Public Companies.

Operating Lease (Off Balance Sheet)

For leases that qualify as operating leases under AAS17, the borrowings or future rentals are not included on the balance sheet as a liability, and the leased equipment is not listed as an asset. This can increase a company's borrowing capacity and improve key financial ratios.

Tri-Partite Term Finance Software Agreements

This is a specialised product that facilitates software funding where acknowledgement of the software integration is made by the customer, financier and software licensor.