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MFAA

Financial Services and Credit Guide

 

 

 

02 - 4227 4618

Commercial loans and leasing

Securing commercial finance requires the expertise of a specialist team.  At your company name our consultants are able to package your loan application and present it to the most appropriate lender.  Commercial lenders will evaluate your application based on a number of criteria and we are able to assist you in guiding you through this sometimes complicated process.

Whether you are looking at acquiring a new business or are already established in your existing business, we can help you with your financing needs.  We can arrange finance for different securities ranging from commercial, retail, industrial, vacant or retail land, child care centres, medical centres and so on. 

How does a car lease work?

The financier purchases the vehicle on behalf of the customer, who then leases the vehicle back from the financier and pays a fixed monthly lease rental for the term of the lease.

At the end of the lease the customer can either pay a residual value (final instalment) on the lease and take ownership of the car, trade it in or re-finance the residual and continue the lease.

Benefits of a Car Lease

  • Flexible contract terms ranging from 24 to 60 months (two to five years)
  • Fixed interest rate
  • Fixed monthly lease rentals
  • Costs are known in advance
  • A residual can be applied to a lease, lowering monthly payments
  • Tax deductions are available when the vehicle is used for business purposes
  • As the GST contained in the car's purchase price is claimed back by the financier, only the vehicle's price exclusive of GST is financed, lowering monthly payments
  • Ability to make advance lease payments for tax deduction or cash-flow purposes
  • The lease is secured against the vehicle, allowing lower interest rates

Who does a Car Lease suit?

Car leasing is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. It is also ideal for employees who want to salary package a vehicle through a Novated Lease as part of their remuneration.

Tax implications of a Car Lease

GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where the customer is registered for GST, they can claim some or all of the GST contained in the lease rental and the residual value as an input credit on their next Business Activity Statement.

Where the amount financed is below the Depreciation Limit the customer claims the lease rental as a tax deduction. Above the Depreciation Limit, interest charges on the lease and depreciation up to the value of the Depreciation Limit can be claimed.

 

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