The right structure for each asset.

Vehicles, equipment and plant can be financed half a dozen ways. The right one depends on your tax position, your cashflow, what you plan to do at the end of the term, and whether the asset is likely to hold its value.

How chattel, lease, rental and CHP differ

Chattel mortgage

You own the asset from day one and the lender takes a charge over it. Interest is deductible, GST is claimable on purchase and depreciation works as normal. It is the most common structure for business vehicles and equipment.

Finance lease / rental

The lender owns the asset and you rent it over the term. Monthly payments are typically deductible as an operating expense. At the end of the term you hand it back, renew, or buy it out at the residual. It suits businesses that would rather keep the asset off the balance sheet.

Asset finance FAQs

How fast can I settle an equipment finance deal?

For standard assets such as vehicles and common equipment, an established business can settle in the same week with the right lender. Specialised equipment and complex borrowers take longer.

Is the GST on a chattel mortgage claimable upfront?

Usually, yes. Under a chattel mortgage, the GST on the purchase is claimable in the BAS period you buy the asset, subject to normal GST rules.

Can I finance equipment I already own (sale and leaseback)?

Yes. Sale and leaseback is a common way to release capital tied up in equipment you already own, often during a growth phase or an acquisition.

General advice disclaimer. The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you before acting on it, and seek professional advice where relevant.

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