Asset Finance Products & Services

Numerous types of plant & equipment finance options are available.

Contact us to help you determine which options are best suited for your business. We can help you better understand your cash flow and get you the equipment you need.
If you need finance for any plant or equipment, the specialists at FrontRunner Finance Solutions can help you obtain funding for any depreciable asset for business purposes. We can also help you find business loans and commercial loans for any worthwhile business need or new venture.

In addition to sourcing the interest rate and terms available that best suit your needs, we also work with your advisers to ensure the structure is a perfect fit for you and your circumstances.

Manage your Cash Flow

Having the right equipment is vital to running your business, but it can also be expensive to purchase and may be a drain on working capital. To optimise your working capital and better manage your cash flow, consider equipment finance to help you purchase assets. Using this form of finance removes the need to spend large sums on equipment by enabling you to essentially rent or lease items over a set period of the contract. This form of finance can be used to acquire a range of expensive equipment, including vehicles, yellow goods, farm machinery, industrial machinery and other forms of plant and assets. It does not, however, cover trade and operating expenses or property. We can help you take into account seasonal cash flow variations and other factors when creating your finance payment plan.

Chattel Mortgages

A chattel mortgage is a loan for companies and businesses to purchase motor vehicles, trucks, earthmoving and industrial plant and professional equipment for business use. Security for the loan is a registered mortgage over the equipment financed.
Benefits include the following:
  • Flexible repayment options depending on your business requirements including monthly, quarterly, seasonal and annual.
  • Choice of paying a deposit or not – 100% finance may be available (including GST)
  • You own the goods / vehicle upfront and pay for them later – leaving valuable cash in the business
  • You can choose an option with a balloon payment at the end of the term to reduce repayments over the life of the loan
  • Fixed interest rates apply, providing a hedge against possible rate rises.
  • You pay no GST on instalments 

Operating Lease

An operating lease is a rental agreement available to businesses, allowing an employer to avoid the risks normally associated with ownership, including no residual value liability.
Benefits to the employer:
  • Lease payments may be fully tax deductible if the vehicle is used for legitimate business expenses – subject to Tax Office depreciation limits
  • Working capital is preserved
  • No deposit is required on the vehicle
  • Fixed monthly finance charge makes it easy to budget for the cost of the vehicle
  • All running costs associated with the vehicle may be included in a single monthly charge
  • Business credit lines are not disturbed 

Novated Lease

A novated lease is a finance lease agreement between an individual (employee), his/her employer and a finance company. In this case, the employer makes monthly repayments on your behalf via a salary sacrifice program or car allowance.
Benefits for the employee:
  • Flexibility with the choice of vehicle to meet your business and personal needs
  • You can take the vehicle with you when you change jobs
  • Tax benefits as financing may be paid with pre-tax dollars (remembering there may be Fringe Benefits Tax to consider) 
Benefits for the employer include an easy way to add value to an employee’s remuneration package. The vehicle is the responsibility of the employee, so there are no costs to the employer associated with disposal of the vehicle should the employee leave. 

Commercial Hire Purchase (CHP)

A CHP is a contract in which the financier operates as owner of the vehicle and allows you (the hirer) to use the vehicle in return for regular payments. Unlike in a leasing arrangement, title passes to the hirer at the expiration of the term. A balloon payment is an option (within taxation guidelines) or the contract may be written down to a nil balance if desired.
Benefits are:
  • Fixed monthly finance charge
  • Business credit lines are not disturbed
  • Depreciation and interest content are often fully tax deductible – subject to Tax Office depreciation limits.
  • Working capital is preserved
  • No deposit is required
There may be reduced tax advantages with short-term contracts, and you will need to pay out the contract if changing vehicles. 

Contact us for advice at no obligation to you. 
We look forward to helping you realise your dream purchases.

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