• Equipment Finance

  • Equipment or Asset Finance as it is commonly known is an excellent and relatively simple avenue to raise funds in business. Beltina offers three main commercial loans available to buy business assets, each with varying tax benefits to be utilised to suit business purposes.

    • Chattel Mortgages
    • Finance Leases
    • Commercial Hire Purchase

    All these loans have the follow benefits:

    Conserve Cash: Asset Finance allows you to acquire capital equipment without the need to outlay large lump sum payments that may otherwise adversely affect cash flow.

    Affordability: Asset Finance allows the purchase of capital equipment today rather than delaying the opportunity until a later time which may prove both costly to the business and avoids technological obsolescence.

    Spreading Costs: Asset Finance enables the cost of the capital equipment to be spread over its useful life

    Budgeting: Asset Finance can be structured to match budgeted expenditure, or cash flow.

    Banking Lines: Asset Finance allows cash reserves to be preserved along with other bank facilities that may then be utilised for other important working capital requirements.

    Tax Benifits: The cost of Asset Finance is tax deductable for business purposes. We have prepared an Asset Finance Product Matrix for both commercial and consumer loan that outlines all important features of the relative products. 

    Preferred Client Profile

    • Established business with ABN
    • Business Principals are property owners or 3 years at rented home
    • Satisfactory credit checks for applicants and guarantors, and/or
    • Financial statements confirming ability to meet business commitments

    Business Commercial Product

    Business clients are eligible to finance Category “A” Assets without the need to provide financials subject to meeting the following basic credit criteria:

    1. ABN registered for minimum of 2 years
    2. Business Principals are verified property owners (if not a 30% deposit will be required, unless financial statements are provided)
    3. Satisfactory credit checks for applicants and guarantors
    4. Goods to be supplied by licenced dealership (no private sales)
    5. Standard prime lending rates and terms apply

    The loan limits under this product available to clients are as follows

    1. New to lender - Maximum individual loan amount of $100,000
    2. Existing client (demonstrating 2 years with no history of arrears) - Maximum individual loan amount o f$200,000
    3. Maximum total loans exposure with lender for applicant/guarantors - $500,000

    Category “A” Asset Guidelines

    • Passenger cars and commercial vehicles
    • Small to medium trucks and trailers
    • Prime movers (specialised use including cement mixers, tippers and local transport work)
    • Buses (under government contract)
    • Earthmoving equipment – excavators, bull dozers, graders, skid steer loaders
    • Agricultural equipment – tractors and mowers
    • Material handling and access equipment – forklifts, container lifts, boom lifts and scissor lifts
    • Medical and Dental Equipment (excluding fixtures and fit outs)

    Category “B” Asset Guidelines

    Class B Assets are considered to be all asset/good types that are not included in the above tables such as:

    • Computer Equipment
    • Office Equipment & Machinery
    • Other Fixed Plant & Equipment
    • Eligible Fitout Transactions

    “If it's depreciable, it's leasable”, so,
    “If you can find it, we'll finance it!”

  •   Commercial Hire Chattel Mortgage Finance Lease Novated Lease Consumer Loan
    Purchase Ownership of assets Customer hires and uses the asset until they make their last payment. Once all payments are made title transfers to the client Borrower owns the asset from the start of the agreement. Macquarie secures the loan by registering a charge over the asset Macquarie owns the asset. Client pays the monthly rental and at the end of the lease has options Macquarie owns the asset. Customer’s employer pays the monthly rental and at the end of the lease has options Borrower owns the asset from the start of the agreement. Macquarie secures the loan by registering a security interest over the asset
    Term 12 to 60 Months 12 to 60 Months  12 to 60 Months  12 to 60 Months  12 to 84 Months
    Age of asset Motor vehicles: age plus contract term should not exceed 12 years Equipment: Age limit based on asset being funded Motor vehicles: age plus contract term should not exceed 12 years Equipment: Age limit based on asset being funded  New or near new  New or near new Motor vehicles: age plus contract term should not exceed 12 years
    Deposit Optional Optional Not available Not available Optional
    Documentation fees and duties financed? Optional Optional Optional Optional Optional
     Repayment options • Monthly
    • Quarterly
    • Semi-annual
    • Annual
    • Seasonal
    • Structured one off payment
    • Repayments can be made in advance or arrears
    • Monthly
    • Quarterly
    • Semi-annual
    • Annual
    • Seasonal
    • Structured one off payment
    • Repayments can be made in advance or arrears
    • Monthly
    • Quarterly
    • Semi-annual
    • Annual
    • Seasonal
    • Structured one off payment (conditiona)
    • Repayments can be made in advance or arrears
    • Monthly• Structured one off payment (conditional) • Repayments can be made in advance or arrears • Monthly
    • Repayments can be made in advance or arrears
      Balloon/residual payment Optional Optional Residual required. Minimum set according to ATO guidelines Residual required. Minimum set according to ATO guidelines Available upon request with credit assessment
     Ongoing tax benefits* Interest and depreciation may be deductible for the customer for income tax purposes Interest and depreciation may be deductible for the borrower for income tax purposes Full rental payments may be deductible for the client for income tax purposes Net payments (excl GST) are taken from employee's pay, potentially reducing the employee's taxable income None notable
     GST* • GST should be payable by the customer on the initial asset purchase price, fees and the terms charges (interest). GST can be included in the amount financed. No GST should be payable on the repayments or balloon
    • Ownership of the asset should be with the financier. Transaction should be considered a deemed sale and loan for GST purposes
    • If customer is registered for GST they may be entitled to claim input tax credits upfront.
    • GST should be payable on the initial asset purchase and can be included in the amount financed
    • Ownership of the asset should be with the borrower at settlement
    • If the borrower is registered for GST they may be entitled to claim input tax credits upfront.
    • There should be no GST payable by the Client on the initial asset purchase
    • GST should be payable on the rental payments over the life of the contract and should be payable on the residual value
    • If you are registered for GST you may be entitled to claim input tax credits in relation to the rental payments and residual value.
    • There should be no GST payable by the Client or employer on the initial asset purchase
    • GST should be payable on the rental payments over the life of the contract and should be payable on the residual value
    • If the employer is registered for GST they may be entitled to claim input tax credits in relation to the rental payments
    • Employee is responsible for any GST on the residual value. They may not be entitled to claim any input tax credits in relation to this amount.
    • GST should be payable on the initial asset purchase and can be included in the amount financed
    • Ownership of the asset should be with the borrower at settlement
    • No GST should be payable on the repayments, balloon or term charges.
  • For Further Information on Equipment Finance
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