Asset Finance
How Business Owners Can Use Asset Finance
Cash flow is the lifeblood of any small business. When it's time to upgrade a vehicle, purchase new machinery, or install medical equipment, paying cash can severely deplete your working capital reserves.
Credit is subject to lender criteria, assessment and approval. Fees, charges and eligibility criteria may apply.
Danny SaputraPublished Updated 1 min read
The Strategic Use of Debt
Asset finance allows you to spread the cost of an asset over its useful life. This aligns your expenses with the revenue the asset generates, keeping your cash available for daily operations and unexpected opportunities.
Types of Asset Finance
- Chattel Mortgage: You own the asset from day one, and the lender takes a mortgage over it. Tax treatment differs between options, so ask your accountant which suits your business.
- Finance Lease: The lender buys the asset and leases it to you. You have the option to purchase it at the end for a residual value.
- Hire Purchase: Similar to a lease, but you automatically take ownership once the final payment is made.
Tax incentives such as the instant asset write-off change over time and have eligibility rules and limits, so check the current position with your accountant before you buy.
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General information only, not personal advice.
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