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A Finance Lease is a commercial finance product which gives employees the use of a car or commercial vehicle alongside the benefits of ownership. It can benefit both businesses and employees.
A Finance Lease is a commercial car loan product designed to provide Australian businesses with access to work vehicles. Under a Finance Lease, a lender purchases a vehicle on the business' behalf and then rents it back to them in exchange for payment.
Our specialist consultants will guide you through the process of selecting a suitable car loan or leasing solution for your individual circumstances.
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Please note: This is an estimate provided for illustrative purposes only, and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees such as early repayment costs and establishment fees are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
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Read case studyEach type of business car loan has its own unique benefits, suited to different sets of business requirements. Deciding on the most suitable car loan for your business is as simple as weighing your requirements against the different benefits each type of loan offered.
A Finance Lease is a type of car loan used by businesses to finance commercial vehicles. They are commonly used for businesses that are looking to finance luxury vehicles or new models, and wish to do so without spending large amounts of capital.
A Finance Lease is often chosen by business owners who are looking to purchase a vehicle or fleet of vehicles, without spending a large amount of capital. The advantage of a Finance Lease is that it allows you many of the benefits of vehicle ownership, without the substantial outlay of capital upfront.
Rental payments are generally fixed, so you always know what you'll pay and when. In most cases the vehicle is sufficient security for the lease, so additional business assets are not required as security. Loan terms are also flexible and can be negotiated to extend between 1 and 5 years.
Goods and Services Tax (GST) is to be paid on both the monthly repayments and the residual value (balloon payment) of your finance lease. Provided your business is registered for GST, some or all of that GST may be claimable as an Input Tax Credit on your following Business Activity Statement (BAS). The GST due at the purchase of the car is paid and claimed back by the lender as an Input Tax Credit.
Tax deductions may be available for lease rental payments, provided the vehicle is used for business purposes, and those purposes meet Australian Tax Office (ATO) requirements. Consult a tax professional for specific advice about tax implications.
Finance Leases have many advantages for business owners looking to purchase vehicles without spending a large amount of capital. They may also, in some cases, be used by proprietors to purchase equipment. Additionally, there can be benefits for employees wanting to salary package a car via a Novated Lease as part of their remuneration.
Finance Leases do, however, provide substantially less flexibility than other types of secured car loans. So, if you do not fall into either of the above two categories a Secured Car Loan, Commercial Hire Purchase or Chattel Mortgage may be more suitable for your circumstances.
Another option, for those with bad credit, who want to avoid approval problems, due to their credit file, is to consider a rent to own car agreement. As these agreements are for a rental period, a formal credit check is often not a requirement. At the end of the agreement, the customer may choose to purchase the vehicle, as a condition of the rent to own agreement.
Exactly how much you are eligible to borrow will depend on a variety of factors. These factors can include, but are not limited to, your business's cash flow, the type of vehicles you wish to purchase, your credit history and more.
100% finance or no-deposit Finance Leases are available in some cases. Additionally, on-road costs, insurance and warranty products can often be included in the amount financed. For information tailored to your situation, speak to a Rapid Finance loan specialist today.
Rapid Finance loan specialists are knowledgeable regarding a variety of business loans, including Finance Leases. Your dedicated specialist will assess your application, compare a range of loan options, and seek out a solution which matches your individual circumstances.
Your loan specialist can take you through the whole process – from beginning to finish. They can assist you with it all, from sourcing required documentation to reviewing your existing credit history. You can start your application today by calling us on: 1300 467 274.
To start your application with Rapid Finance, you will need some personal and business details, as well as a rough idea of your desired loan amount. A loan specialist will get in touch and will advise you regarding additional documentation.
Exactly how long approval will take can depend on a variety of things, including your business's circumstances and your credit history. Additionally, the amount you wish to borrow and the type of vehicle you require can also be factors.
At Rapid Finance, we provide rapid and reliable service. We understand that business moves quickly and that the last thing you need is a lengthy and cumbersome procedure. That's why we always strive to provide a streamlined approval process.
Yes. At Rapid Finance, we are experienced in finding loan options for those in less than straightforward situations. Even if you have a poor credit history or if you have been turned down elsewhere it is still worth applying with us. We may be able to help.
Your dedicated loan specialist can assess your application, compare a range of business loan options and seek out a solution that matches your business's circumstances. For more information or to discuss your individual situation call us today.
You can apply with Rapid Finance by submitting an online application on our website. One of our loan specialists will get back to you shortly to discuss your Finance Lease options. You can also give us a call on 1300 467 274