Comparison table of Loan Products
Commercial
Hire Purchase |
Finance
Lease |
Chattel
Mortgage |
|
| Definition | You (the ‘hirer’) possess the right to use the asset in return for regular payments. When the final payment is made the title of the asset is transferred to you. | You pay a series of rental payments. At the end of the term, you have the option the purchase the asset at the residual value. | You get ownership of the asset from the start of the contract, with us able to secure the loan by registering a charge over the goods. |
| Loan Purpose | Truck, Trailers, Forklifts, Earthmoving and Agricultural goods | Truck, Trailers, Forklifts, Earthmoving and Agricultural goods | Truck, Trailers, Forklifts, Earthmoving and Agricultural goods |
| Loan Term | 1 – 7 years | 1 – 7 years | 1 – 7 years |
| Loan Amount | $7,000 – no maximum | $7,000 – no maximum | $7,000 – no maximum |
| Age of Asset | New up to 7 years old | New up to 7 years old | New up to 7 years old |
| Deposit | Optional | Not available | Optional |
| Repayment options |
|
|
|
| Interest Rate | Fixed for the life of the loan. | Fixed for the life of the loan. | Fixed for the life of the loan. |
| Balloon / Residual | Optional. | Residual required. Minimum set by ATO. | Optional. |
| Tax benefits | Interest component of the payments is tax deductible. | Rental payments are fully tax deductable if asset is being used solely for the purpose for earning an assessable income. | You may be able to claim some depreciation and the interest component against your taxable income, depending on the percentage of business use. |
| GST | GST is payable only on the initial
asset purchase and can be included in the amount financed. If you hold an ABN and you account on a cash basis GST is amortised over the life of the contract and you may be able to claim an Input Tax Credit each month or quarter. If you account on an accrual basis you may be able to claim GST upfront on the first day of hire. No GST is payable on the repayments, balloon payment or term charges. |
There is no GST payable on the initial
asset purchase. GST is payable on the rental payments over the life
of the contract and on the residual amount. If you hold an ABN you may be able to claim the GST as an Input Tax Credit each month or quarter. |
GST is payable only on the initial
purchase and can be included in the amount financed. If you hold an ABN you may be able to claim the GST as an Input Tax Credit each month or quarter. No GST is payable on the repayments, balloon payment or term charges. |
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