EQUIPMENT FINANCE

Finance Leasing is a great business arrangement / facility for those who want the benefits of leasing through there business as a tax deductible item (if used to generate taxable income).

What is a Finance Lease?

Under a Finance Lease, the lender will purchase the vehicle or equipment. In exchange, you will make a series of rental payments.

The processes involved in a Finance Lease

1. You select a vehicle or equipment
2. You negotiate the price and contract conditions
3. You select a term you would like the lease to be taken over (1 to 5 years)
4. A residual value is set (this is an estimate of the vehicle or equipment's value at the end of the lease period). This residual amount is what is required to be paid at the end of the lease period.
5. The Lender will then purchase the vehicle or equipment on your behalf
6. You make rental payments to the Lender (on a monthly frequency)
7. At the expiry of the lease period you have three (3) options:
   • Make an offer to purchase the vehicle of equipment from the Lender
   • Return the vehicle or equipment to the Lender (you will need to pay any shortfall if the proceeds from the sale do not meet the residual value)
   • You can trade in the vehicle or equipment on behalf of the Lender and lease a new one

   Benefits to your Business

   1. Rental payments are fully tax deductible (if the vehicle or equipment is used to generate taxable income)
   2. You are not required to outlay any capital if you are an asset backed applicant
   3. You can choose your own supplier and negotiate the price independently without any interaction from the Lender
   4. A direct debit will be arranged to save you time and money
   Allows you to upgrade your vehicle or equipment regularly

Pulp finance can help to assist with all applications from $50,000 to larger amounts for fully verified loans to smaller amounts up to $50,000 with a lo doc application. Currently Pulp Finance is servicing current client’s needs for all heavy and light machinery, scaffold, trucks and vans, power tools etc. Whatever your business needs, we can help to finance the equipment for it.