Equipment Finance
We provide commercial finance for most items, provided they assist in the generation of income (wholly or predominantly used for business purposes). Our financial services include:
- Motor Vehicles - Passenger
- Motor Vehicles - Commercial and Heavy Haulage
- Agricultural Plant & Equipment
- Earthmoving and Construction Plant and Equipment
- General Plant and Equipment
- Medical Equipment
- Office Equipment
- Food Processing Equipment
Loans can be structured as:
- Rent Purchase, ?What is an Rent Purchase?
Commercial hire purchase (CHP) or rent purchase is an agreement between the purchaser and North State Finance. North State Finance owns the vehicle or equipment during the hiring period. It differs from a finance lease in that the goods automatically transfers once all terms of the agreement have been completed - usually when the final instalment is paid.
A CHP can be arranged with or without a final balloon payment at the end of the term depending on what your budgetary requirements are. The repayments are fixed for the term of the CHP. An upfront deposit or trade-in, which will reduce your rental commitments, is optional.
hide - Commercial Hire Purchase, ?What is a Commercial Hire Purchase?
Commercial hire purchase (CHP) or rent purchase is an agreement between the purchaser and North State Finance. North State Finance owns the vehicle or equipment during the hiring period. It differs from a finance lease in that the goods automatically transfers once all terms of the agreement have been completed - usually when the final instalment is paid.
A CHP can be arranged with or without a final balloon payment at the end of the term depending on what your budgetary requirements are. The repayments are fixed for the term of the CHP. An upfront deposit or trade-in, which will reduce your rental commitments, is optional.
hide - Chattel Mortgage, ?What is a Chattel
Mortgage?
Chattel Mortgage is essentially a Mortgage over goods to be financed. Chattel Mortgage is classed as a cash sale in that the goods automatically transfer on purchase and the finance company takes a mortgage over the chattels. However for tax purposes you can claim depreciation, running costs and interest paid, against your business income. The Chattel Mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement). Always seek advice from your accountant in regard to this.
The Chattel mortgage is a very flexible finance option, in that, you have the ability to either finance the full purchase price or alternatively, you can include an upfront deposit or trade-in to reduce your rental commitment, while a Residual payment may also be placed at the end of the term (much like a lease residual) to represent the vehicle's end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement (fully amortised).
hide - Financial Lease, ?What is a
Financial Lease?
A finance lease is a form of rental agreement under which you lease an asset for an agreed period and rental. A residual value is set upfront to reflect the assets value at the end of the term.
Under the conditions of most finance leases you have no option or right to purchase the asset. However it is common practice that most financiers will consider an offer from you to purchase the asset at the end of the term for the residual value. Alternately, you may trade it in on a replacement, return it to the financier paying the difference between the residual and market value (residual risk) or even extend the lease for a further term.
hide - Operating Lease for Motor Vehicle or Commercial Rental Agreement, ?What is an Operating Lease?
An operating lease is similar to a finance lease. The difference being that under an operating lease you have no exposure to the residual value risk i.e., the difference between the residual value and the market value of the asset. At the end of the term you must return the asset to the financier. It is an ideal product for equipment that needs regular updates. Accounted for off balance sheet.
hide - Novated Lease, ?What is a Novated
Lease Agreement?
A Novated Lease Agreement is an agreement between an employee, the employer and the financier. The lease is taken out in the name of the employee and the employer agrees to take on the repayment responsibilities for the duration of the employees employment. It is not recorded on the balance sheet of the employer.
If the employee leaves this employer, the lease may be transferable to a new employer or the employee can take on the responsibility of the repayments. The original employer no longer has any financial responsibility and is not left with a vehicle they do not require.
The benefit to the employee may be the reduction of tax as a result of having the repayments made out of pre-tax dollars. There may be fringe benefits tax consequences (based on the vehicle value and kilometres travelled) as a result of the transaction between the employee and the employer, so advice from your tax professional is recommended. Similar to a finance lease, residual risk rests with the employee.
hide - Revolving Credit facilities. ?What
are Revolving Credit facilities?North State Finance offers revolving credit facilities, which enables clients to make payments and withdrawals on a day-to-day basis. The borrower has access to the facility and can re-borrow immediately any repayments are made. Examples of revolving credit facilities are overdrafts and line of credits.hide
If you would like to apply for Equipment Finance, please fill out our Equipment Finance Application Form, or contact us now on 1800 069 950.
You may also be interested in our Fast-Track Equipment Finance Service, which offers a faster route to finance approval, as long as certain conditions can be met.