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Australia's leading arranger of plant & equipment finance
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Interlease has over thirty five years of expertise in financing plant and equipment and has accreditation with all of Australia's leading financial institutions.
Income producing equipment forms the basis of the security and finance is structured to suit:
1. The cash flow requirements of the business.
2. The type of equipment and how it will be utilised.
Equipment finance can be arranged using a number of products, however the most common are chattel mortgage, hire purchase and finance lease.
Interlease can also offer a number of other finance solutions and more information is available at www.interelase.com.au
Glossary of Finance Terms:
Rental/Operating Lease:
Rental can be structured over one to five years, paid monthly quarterly, half yearly or annually. One of the advantages is that payments are 100% tax deductible. At the expiration of the term goods are to be returned to the financier unless a buy back agreement is in place.
Debtor Finance:
Debtor is also know as "Factoring" and "Invoice Discounting". Imagine you are a manufacturer who wholesales to other businesses in Australia. You manufacture a product for $20,000 and sell it for $50,000, BUT you have to wait for 30 to 60 days before you begin manufacturing more product. No problem, a lender can give you up to $40,000 against the invoice within 24 hours (with the balance on full payment by the debtor), meaning that you can immediately begin manufacturing more product with the $40,000 and sell it for $100,000....Now a lender can give you $80,000 against the second invoice and you can increase your manufacturing of product again. It's like a line of credit based on what you are owed by debtors.
Finance Lease:
Also just referred to as a Lease, or Leasing. A Finance Lease is a contract in which a business or individual (the "lessee) have use of a piece of machinery or equipment for a given time frame in return for a series of rental payments to a finance provider (the "lessor")
Leasing can offer some advantages:
Retention of Cash Flow - up to 100% finance can be provided by the lessor. The lessee can then retain cashflow for other purposes.
Budgeting & Forecasting - lease contracts are fixed for the term of the lease and involve fixed payments, letting your business more accurately forecast budgets and cashflow
Greater Flexibility - the time period and terms of a lease can be tailored to suit the needs of your business.
Taxation Advantages - provided the machinery and equipment under lease is used to generate assessable income lease repayments can be tax deductible.
Residual Value:
Residual value is a lump sum payable at the end of a lease term. The Residual value is based on a realistic pre-estimate of the value of the machinery or equipment under lease at the expiration of the contract.
Chattel Mortgage:
Chattel Mortgage gives a business immediate ownership of equipment or machinery for our business needs. Lenders take a charge over the goods financed and payments can be structured to suit the cash flow of your business. Interest is charged on the reducing balance and debt can be reduced by paying an initial deposit. A "Balloon" or lump sum payment may be added at the end of the agreement to reduce the amount of installments. Terms may be flexible between one and five years. Sole security can be the equipment that is financed. Chattel Mortgages are typically chosen when the applicant is on cash accounting (under $1,000,000 annual turnover) for GST.
Asset Purchase:
Also known as "Hire Purchase" or "Commercial Hire Purchase". Asset purchase is ideal for businesses who want full ownership at the end of the finance period. Repayments can be tailored to suit business cashflow and increase your equity in the machinery or equipment with each installment. Terms may be flexible between one and five years. Sole security can be the equipment that is financed. A "Balloon" or lump sum payment may be added at the end of the agreement to reduce the amount of installments. Hire Purchase are typically chosen when the applicant is on accrual accounting (over $1,000,000 annual turnover) for GST.
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What our Customers Say:
"very good"
Alberto M.
-Nerang, QLD
"Great site, working well even in these non-economi"
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-Richmond, SA
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-South Granville, NSW
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-Hemmant, QLD
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-Virginia, SA
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