One of our aims at Team Leasing is to help our customers get the right finance for their business to help it grow. We recommend you invest a few minutes reading this simple guide to comparing different types of Team Leasing equipment financing. If you have further queries, please read our FAQs or contact us online or call us on 1300 798 977 and learn how Team Leasing can help your business grow.
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Rental/ operating lease |
Finance |
Hire |
Chattel Mortgage |
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Why? |
Because you see value in using the equipment not owning it | You wish to own the equipment and want payments that are fully deductible | You wish to own the equipment and receive GST credits over the term | You wish to own the equipment and receive a GST refund in your next BAS |
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Who? |
All businesses | All businesses | Businesses with turnover > $1m | Businesses with turnover < $1m |
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Which equipment types? |
All
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All
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All
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All
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Refresh or swap equipment during the term? |
Yes
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No
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No
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No
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Tax deductibility? |
Payments fully deductible with business use | Payments fully deductible with business use | Interest and depreciation with business use | Interest and depreciation with business use |
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100% Financing? |
Yes however upfront payments are allowed | Yes however upfront payments are allowed | Yes however deposits/trade ins are allowed | Yes however deposits/trade ins are allowed |
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GST? |
Amount financed is ex GST and payments have GST added | Amount financed is ex GST and payments have GST added | Payments do not attract GST | Payments do not attract GST |
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End of term options? |
Many – keep using, return and upgrade or purchase at FMV (Fair Market Value) |
Return and pay any residual shortfall or purchase for residual value | Take ownership after balloon payment if applicable | Take ownership after balloon payment if applicable |
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Accounting recognition? |
Off balance sheet | On balance sheet | On balance sheet | On balance sheet |
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Risks of ownership? |
With Team Leasing | With you | With you | With you |