A lease agreement can be an effective way for a company to acquire assets for business use. Lease rentals are calculated for an agreed time frame with the rentals normally being tax deductable. Agreements are flexible and payments can be calculated monthly or quarterly, half yearly or annually. At the end of the term, a residual value or baloon is paid (predetermined at the commencement of the lease) to acquire the goods from the financier and in some instances can be refinanced to be paid off over a certain period. This way your rentals can be structured to meet your cash flow requirements.
An agreement for a business to rent the relative goods for a fixed period of time, customise payments to suit business cash flow and payments are subject to stamp duty and GST
Under the terms of a finance lease, the party taking out the lease normally has no option or right to purchase the equipment leased either during, or at the end of the agreement. However, in practice, most financiers will consider an offer to purchase their equipment for the residual value at the end of the lease term.
Lender Novated Leasing is a flexible, portable and convenient way of acquiring a motor vehicle for both employers and employees. Employees can lease their vehicle of choice while their employer pays the rentals and other running costs (if agreed to) directly from the employee’s salary. Potential tax benefits for the employer and employee and the vehicle maybe leased entirely for private use.