Peace of Mind
An operating lease is an agreement to rent equipment for use in business for a
fixed period of time. It can be an efficient and cost effective financing strategy if
vehicles and equipment need regular upgrading, or if renting is more suitable
than owning the asset. At the end of the lease period, the equipment is
returned to the financier, subject to return conditions, without obligation for the
residual value.
Business Growth
© 2001 - 2002, Lease and Mortgage Direction Pty. Ltd. ABN: 23 097 039 953 Email: cbutler@mortgagedirection.com.au
Lease & Mortgage Direction
COLIN BUTLER
m. 0400 880 033
Payments can be customised to
suit business cash flow
Lease payments may be made
off-the-balance sheet, providing
scope to improve business
performance ratios such as
Return on Assets
Rentals are subject to stamp
duty and GST
Provides 100% financing so working
capital is preserved
Guards against obsolete equipment and
offers the flexibility to respond to
changing market demands
Provides access to the most modern
equipment and technology without the
associated risks of ownership
Takes away the concern of disposing of
equipment with a weak re-sale market
Offers flexible payment arrangements
Allows the business to claim the full
amount of the rentals as a tax
deduction (provided the equipment
used to generate assessable income)