Chattel mortgages are commonly used by companies,trusts, partnerships and sole traders to fund business equipment, machinery and motor vehicles. Under the Australian Taxation Office rules, businesses that account for GST on a cash basis are entitled to claim an input tax credit for all of the GST contained in the purchase price of the chattel on their next Business Activity Statement. Repayments of chattel mortgages in most Australian states does not attract stamp duty. Under a typical chattel mortgage, the purchaser borrows funds for the purchase of movable property (the chattel) from the lender. The lender then secures the loan with a mortgage over the chattel, legal ownership of the chattel is transferred to the purchaser at the time of purchase, and the mortgage is removed once the loan has been repaid.
Leasing has favourable taxation benefits, speak with your accountant about how leasing can work for you; leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.
Rent-to-own, also known as rental-purchase, is a type of legally documented transaction under which equipment is rented for a monthly or weekly payment, with the option to purchase at some point during the agreement.
Other equipment finance products include, Marine Finance, Novated Lease, Hire and Lease Back. It is always advisable to seek advice from your accountant before deciding on a finance product for your next purchase.
Low Doc Finance
Financials or tax returns are not required for most equipment types and vehicles under $150,000 dollars. You may be approved for low doc finance even if you are:
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