Business Money Solutions
money pants® is accredited with the major commercial and asset finance lenders
giving competitiveness to our business clients.
Leasing can allow you to free up your balance sheet and more effectively utilise your resources. We specialise in structuring leasing solutions. These solutions include infrastructure and asset leasing, IT and technology financing, motor vehicle fleet leasing, and leasing to the aviation and telecommunications sectors.
Novated Lease
The majority of clients who benefit from Novated leases are those who have a portion of their salary in a higher tax bracket as deductions for the Novated lease and associated costs are taken out of their pre-tax (gross) salary OR any client irrespective of their tax scale will greatly benefit.
- A Novated Lease is a variation of a normal finance lease arrangement.
- It is a three-way arrangement between an employer, their employee (client) and a vehicle financier offering an alternative to the standard company car.
- The client leases a motor vehicle of their choice from the finance who then novates the agreement to their employer.
- Any residual value must be in adherence to the ATO guidelines.
Click here for More Information on a Novated Lease and How You Can Apply
Hire Purchase
Hire Purchase appears on your balance sheet. Generally suitable for business users using the “accruals” method of accounting for GST or for an individual who uses their vehicle for business e.g. sales rep with car allowance telecommunications sectors.
Deposits, equity or trade equity can be applied. Commercial Hire Purchase (also known as a CHP, Commercial Loan or Asset Purchase) is similar to leasing except the customer claims the allowable depreciation on the vehicle or equipment plus the interest component as a tax deduction. This is as opposed to claiming the actual lease payments.
The choice between the two will depend on which option maximises the customer’s tax deduction. This in turn will depend on the term and the depreciation rate allowable on the vehicle of equipment.
This is particularly useful when the customer wants to upgrade the vehicle or asset at midterm or term end helping to avoid a potential capital gain tax liability.
Chattel Mortgage
Chattel Mortgage Flexible product best suited for business users using the “cash” method of accounting for GST.
In most respects identical to CHP (Commercial Hire Purchase) – interest rates, terms accounting treatment etc.
- Key difference lies in the ownership of the asset.
- The client is the owner of the goods under Chattel Mortgage.
- Interest and depreciation claimed by the client.
- The distinction of ownership allows the clients on “cash” method to obtain a full input tax credit for any GST paid relating to the purchase of the asset.
- GST can be claimed upfront by ABN holders.
- This product has become popular again due to this specific GST related reason.
- Balloon payments can be included if desired – no tax guidelines applicable.
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The negative aspect to a Chattel Mortgage is there is a charge lodged by the lender with ASIC and a lodgement fee of approx $135.00.
Disclaimer: Where we provide any advice on this website, it has been prepared without considering your objectives, financial situation or needs. Before acting on any advice on this website, you should consider its appropriateness to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website.
