MHF is able to provide the full range of equipment finance solutions, recommending the appropriate type of funding to match the nature of the equipment assets being purchased. A brief overview of the various finance packages available can be summarised as follows:-
Using a Chattel Mortgage product, the purchaser takes title (ownership) of the equipment being purchased from the time of acquisition. This facility is ideally suited to businesses and individuals which account for GST on a cash basis, allowing you to claim the GST component of the purchase price as a taxable refund.
Commercial Hire Purchase
A hire purchase agreement is a contract for the hire of goods where ownership of the subject equipment remains with the Financier and does not pass to the purchaser until either the option to purchase is exercised (payout of the agreed residual) or alternatively the total agreed finance installments are paid in full. Such a facility enables the Borrower to claim the interest and depreciation expenses as a tax deduction, with the subject asset deemed the property of the hirer / purchaser throughout the loan term.
This type of finance is ideally suited to businesses and individuals which account for GST on an accrual basis, allowing them to claim the GST component of the purchase price as a taxable refund.
A Finance Lease facility involves the purchaser repaying an asset over an agreed period, with monthly payments dependant upon the term and residual position entered into. Under this finance arrangement all monthly lease payments are tax deductible and the equipment remains the property of the Financier, throughout the finance term.
Rental finance is a competitive “off balance sheet” financing tool that provides the renter with greater flexibility and reduces the risks associated with owning equipment that is of a technological nature and is subject to obsolescence within a 3 to 4 year period (i.e. Computer Hardware and Software equipment).
By utilising a rental facility the renter is able to claim the monthly rental payments as a tax deduction throughout the rental term and then simply return the subject goods to the Financier at the end of the rental term. The renter then enters into a new rental agreement, which is provided on fully upgraded / new equipment.
For further information regarding rental / operating lease finance solutions contact us.
Sale & Lease Back Funding
This type of finance is available when a company has purchased equipment outright utilising surplus cash or available working capital and at a future date wishes to refinance the subject asset, thereby injecting those funds back into the businesses cash flow. The asset can be sold to a Financier and leased back over an agreed finance term.