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Business Equipment Leasing | Business Loans Australia

26 Feb Today's
best rate
Finance Equipment From
2.79 %
Fixed
*The Interest Rate is calculated on a Secured Loan for business use, effective 27/02/2021 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Compare Leasing Interest Rates with Other Finance

In this interest rate comparison table, we’ve compiled our current achievable interest rates for leasing and other lending products in our portfolio. Compare repayment estimates on leasing with Chattel Mortgage, CHP and Rent-to-Own to assist in your decision-making. Simply enter the loan amount and term you want and the table auto-calculates repayment estimates. Then contact us for a specific quote.

Loan Amount
Loan Term
New Equipment Loan
2.79% Starts At
$949.58333333333
Monthly repayment
Used Older Secured Equipment Loan
4.50% Starts At
$1020.8333333333
Monthly repayment
Business Loans - Unsecured
7.99% Starts At
$1166.25
Monthly repayment
Business Loans - Secured
2.95% Starts At
$956.25
Monthly repayment
Overdraft - Non Bank
9.95% Starts At
$1247.9166666667
Monthly repayment
Chattel Mortgage
2.79% Starts At
$949.58333333333
Monthly repayment
Operating Leases
4.60% Starts At
$1025
Monthly repayment
Commercial Hire Purchase
2.79% Starts At
$949.58333333333
Monthly repayment
Rent To Own
9.95% Starts At
$1247.9166666667
Monthly repayment
Loan Product Interest Rate
Starts at:
Monthly Repayment
New Equipment Loan 2.79%
$949.58333333333
Used Older Secured Equipment Loan 4.50%
$1020.8333333333
Business Loans - Unsecured 7.99%
$1166.25
Business Loans - Secured 2.95%
$956.25
Overdraft - Non Bank 9.95%
$1247.9166666667
Chattel Mortgage 2.79%
$949.58333333333
Operating Leases 4.60%
$1025
Commercial Hire Purchase 2.79%
$949.58333333333
Rent To Own 9.95%
$1247.9166666667
Get a free quote

Disclaimer: This interest rate comparison table is provided solely for the purpose of comparing the interest rates currently applicable on different commercial finance facilities. Use of the calculator element of the table is not an application for lending and any results displayed are not an offer of lending or an indication that a loan application has been approved. Broker and lender fees and charges are not all included in the calculations. A leasing or other loan offer made to you may be different in repayments and interest rates from those displayed.

Equipment Leasing

Equipment Leasing is a business loan facility which is suitable for the many businesses that use the accruals method of accounting. Referred to as an off-balance sheet loan, leasing can improve balance sheets as the asset being financed is entered on the balance sheet of the lender. The equipment is ‘off’ the balance sheet of the borrower as it not entered as an asset/liability on the borrower’s balance sheet.

It is advisable to refer to their accountant to discuss the suitability of leasing for their individual business structure

Despite the technical terminology, leasing is straightforward in terms of a fixed lease period and fixed lease payments over the term of the lease.

As many businesses utilise leasing for the purchase of equipment, there are many lenders actively competing for leasing. We save you the time and hassle of having to canvas the entire market to get the best deal. We bring the lenders to you!

  • Access to Leading Leasing Providers
  • Non-Bank Lenders
  • All Major Banks
  • Industry-only Lenders
  • Specialist Leasing Lenders for Your Sector
  • Expert Brokers to streamline the process

Leasing: Explainer and Features

  • The lender effectively purchases the equipment and leases it back to the borrower at a fixed monthly lease payment.
  • The borrower has full use of the equipment from time of purchase/finalising the loan and is responsible for all operating costs.
  • The asset is entered on the lender’s balance sheet.
  • The term of the lease is fixed, usually up to 7 years.
  • The interest rate is usually fixed for the term of the lease.
  • The monthly lease payment is fixed.
  • GST is charged and claimable on the lease payments.
  • The lease payments are tax deductible as an operating costs.
  • A residual is optional. This is a percentage of the purchase price payable at the end of the lease to take ownership of the equipment.

Equipment Suited to Leasing

A wide range of equipment is suitable for leasing across construction, manufacturing, heavy vehicle truck loans and many others. The decision as to whether leasing is the most beneficial form of loan is more dependent on the business structure, accounting method, balance sheet approach and treatment of tax and GST.

Sourcing Cost-effective Equipment Leasing

Rather than spend your valuable time contacting multiple banks and lenders for quotes on your equipment leasing, just contact us. We’ll provide you with contact details lenders that match your requirements.

Connect with us for lenders that may assist you with equipment leasing.

Equipment Leasing Calculator

Start moving forward on those equipment purchases by using our leasing calculator to compare makes and models and plan how you would like your lending structured. Enter the amount you want for lending which can be 100% of the purchase price, the loan term and a residual if you choose and the calculator displays estimated repayments for that data. Contact us for a firm quote.

Disclaimer: This device is not a leasing application form. The results calculated using this device are not in any way a leasing approval or offer. Any leasing offer you are made by a lender may differ in interest rates and in repayments. Fees and charges applicable to leasing contracts by individual lenders may not be included in the estimates. This device is provided as a reference guide only.

Finance Calculator Disclaimer

Equipment Leasing FAQs

Leasing is a popular form of lending for a wide range of equipment and is especially attractive to commercial operations that do not want the asset to appear on their balance sheet during the loan term. As with all commercial lending facilities, leasing has specific features and benefits which may be complex to grasp. To clarify issues you may have, we have addressed a selection of specific questions in this section. For more information or to request a quote, contact our team.

Is no deposit finance available with leasing?   

When the term no deposit lending is used in regards to lending and leasing in particular, it is taken to mean that 100% of the purchase price is included in the leasing contract. It is common practice for businesses to request that the entirety of the equipment purchase price be leased and lenders offer this option, subject to individual guidelines. With the purchase of equipment, additional costs associated with the purchase may also be approved for inclusion in the leasing deal. These costs may relate to the installation and commissioning of equipment and machinery. With a no deposit leasing deal, the lender does not request a deposit be paid by the borrower. But this is different from any deposit which the seller may request to confirm the equipment purchase. If the seller does require a deposit, arrangements can usually be made to have that deposit included in the leasing and any monies paid by the borrower to the seller as a holding deposit refunded directly back to the borrower when settlement is finalised.

What is a residual?   

A residual is a portion of the loan amount, which can be 100% of the purchase price, which is set aside for payment in its entirety at the end of the leasing term. With Chattel Mortgage and CHP this is referred to as a balloon and with Leasing as a residual. The residual is determined according to ATO schedules. It can be represented as a percentage of the loan. The residual is due to be paid in full at the end of the leasing term when the scheduled monthly repayments are all finalised. To pay out a residual, a borrower can consider refinancing, making the payment from trade equity or funding the residual through trade-in. Including a residual in a leasing agreement is optional.

Is leasing a tax deductible form of finance?   

All commercial finance facilities incorporate some form of taxation benefit to the borrowing business. But how that benefit is realised varies across the range of loan products. With leasing, the monthly lease payments are considered as an operating expense and are tax deductible. This is different from Chattel Mortgage where the repayments are not fully deductible, only the interest portion is, but a tax benefit is realised through depreciation. The treatment of GST also varies. With Leasing, GST is applied to the monthly lease payments but not to the interest portion. For businesses registered for GST they can claim the GST paid on the relevant BAS statement. With Chattel Mortgage the full amount of GST payable on the equipment purchase is claimable on the next BAS return following payment/settlement.

Who owns the equipment with a lease?   

With leasing, the ownership of the equipment is retained by the lender over the term of the leasing arrangement. This is usually a fixed term. But the borrower has full use of the equipment from the time of settlement and is responsible for the ongoing costs and maintenance. With the lender retaining ownership the equipment is entered on their balance sheet as an asset/liability. As the equipment is not in the borrower’s business accounts as an asset/liability it is referred to as an off-balance sheet form of finance. This is viewed by some as a means of improving the balance sheet. A feature that may be attractive for some businesses.

Is a sole trader eligible for equipment leasing?   

All types of businesses are eligible to apply for commercial finance facilities including equipment leasing. Sole traders, like other applicants, would need to meet the application criteria of individual lenders to be approved for leasing or any other form of business finance. In general terms, the minimum requirements for commercial lending are to hold a current ABN and to have identification. Being registered for GST is not an essential criteria but may be considered advantageous by some lenders. Financial documentation is required, known as docs. The quantity and quality of the docs provided and the credit profile of the application considered in conjunction with aspects of the equipment being purchased determines approval for leasing and what interest rate and/or conditions will be applied to a specific leasing deal.
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