Tennant Finance
Tennant Finance is one of Australia’s largest cleaning equipment financiers. We have years of experience ensuring our tailored finance solutions fit our clients’ needs, every time. Our finance specialists are experts in their fields, with experience across a variety of industries and markets. We pride ourselves on our client relationships.
Operating Lease
Why pay cash when an Operating Lease gives you more control over acquiring your technology-sensitive cleaning equipment?
Buying business equipment outright only to have it become obsolete 18 months later is a frustrating, not to mention expensive, experience. An Operating Lease is a better way to acquire technology-sensitive business equipment. It enables you to maintain leading edge equipment and infrastructure without incurring upfront costs, thereby freeing up your capital for more productive uses. More >
Update and Upgrade |
| Tennant Finance’s Operating Lease facility provides the ultimate flexibility. You can update, upgrade or add-on equipment without penalty. Changes can be made at any time through a simple contract variation, often without increasing your monthly payments at all. |
Predictable Cash Flow, Preserved Capital |
| With an Operating Lease, your capital and existing lines of credit are preserved for core business requirements. A Tennant Operating Lease doesn’t impact your ability to borrow from your bank when you need it. It also provides the security of a predictable monthly payment with no residual value liability. You have the equipment you need, at a constant, known cost. |
A Huge Tax Advantage |
| Operating Lease payments are treated as a 100% tax-deductible expense when the equipment is used for business purposes. Since the equipment is funded as an operating expense, it does not appear on your company’s balance sheet. |
End of Term Options Without Commitment |
|
At the end of the Operating Lease term, you have a number of choices. You can renew the Operating Lease, upgrade, return or sometimes even purchase the equipment at fair market value. Most clients choose to constantly upgrade their equipment, thereby staying current and competitive and maintaining predictable monthly payments. Hide |
Finance Lease
A Finance Lease is the traditional form of equipment finance and is useful where assets are less susceptible to rapid technological change, or have extremely long effective lives. More >
Full Use, at a Known Cost |
|
Under a Finance Lease, you have full use of the equipment during the term. You have the security of a predictable monthly payment, with a known residual at the end of the term. In addition, there is no initial outlay, so you'll have access to the equipment without the up-front cost. |
End of Term Options |
| Rental payments are treated as a 100% tax-deductible expense item when the equipment is used for business purposes. Since the equipment is funded through a finance lease, the liabilities are noted on the balance sheet as capital expenditure. |
Tax Effective Asset Management |
| While the equipment does appear on your Balance Sheet, the full Lease payment is tax-deductible with business use. While GST is payable on Lease payments over the full term, Clients with an ABN can claim back the GST component.
Hide |
Commercial Hire Purchase
A Commercial Hire Purchase (or CHP) agreement is used where ownership of the asset is key. Built into the CHP contract is an acknowledgement that the hirer gains automatic ownership upon making the final payment. More >
Full Use, at a Known Cost |
| Like a Finance Lease, you have full use of the equipment during the term. You have the security of a predictable monthly payment, which can be lowered by adjusting either the deposit or the end of term ‘balloon’. |
End of Term Options |
| At the end of the CHP term, ownership is ensured by simply paying the pre-determined balloon (similar to the residual value on a Lease). Note though, that you do not usually have the option of handing the equipment back as you do with a Lease or Rental. It is possible, however, to repay the contract before the end of the term. |
Tax Effective Asset Management |
| While the equipment does appear on your Balance Sheet, any interest paid plus depreciation of the equipment is tax deductible with business use. Because payments are calculated on the GST inclusive price, CHP payments attract no GST.
Hide |
Through a unique relationship with Tennant Finance, we can offer highly competitive rates with the flexibility to update, upgrade or add equipment at any time.
Download the Tennant Finance Product Comparison Document here.
Call us today on 1300 657 579 or info@tennantfinance.com.au for further details.
Tennant Finance recommends you seek independent advice on all tax related matters
