Geared Asset Finance
Geared Asset Finance Via Euro Chill
Financing equipment has never been easier thanks to Euro Chill and Geared Asset Finance
Euro Chill can tailor a finance package to meet your specific needs via Geared Asset Finance
Eurochill have partnered with Geared Asset Finance to offer you smarter finance for your business needs. Since 2008, Geared Asset Finance has provided lending facilities to businesses across Australia. Their team of dedicated professionals search the market to get the best solution for our customers. Whether you are looking to rent or own medical or commercial kitchen equipment, Geared will find the best finance solution for you.
As a valued partner of Eurochill you can access these special benefits:
• Market leading rates
• Lending panel of multiple financiers
• Loans with the option of no early termination fees or payout penalties
• No monthly account keeping fees
• Several loan structures to tailor your business needs (Rent\Lease, Chattel, etc.)
• No financials and low-doc options
• Clear end of term options, no large balloon payments
• Startup business options
What exactly is it about asset finance that makes it such an attractive option to such a wide array of different businesses? We explain the benefits.
Leaseback options mean that capital tied up in existing assets can be unlocked and used for whatever a business needs to grow. If you have made a recent asset purchase in the last few months and need some additional cash flow, this is a great option.
Secure, fixed costs
A defined payment plan can eliminate uncertainty allowing businesses to budget for fixed costs of an asset through the contract.
Opens up additional lines of credit
By providing extra facilities alongside cash resources and existing bank credit lines, asset finance can offer a quick solution without affecting a business’s current financing arrangements.
Speeds up credit decisions
A pain free application process such as that offered by Geared Asset Finance means that a business can get a prompt credit decision, this could take as little as 24 hours.
End of term flexibility
When replacing or updating assets with the latest equipment and technology, businesses can afford to be flexible about the length of time they hang on to the assets.
Two of the more popular options are a Rent\Operating Lease and a Chattel Mortgage, here are the key benefits of each solution.
Benefits of a Rental\Operating Lease
Rental allows you to treat the cost of acquiring a piece of equipment as an ongoing expense (eg. electricity, water, stationary, etc.) rather than paying for the entire cost upfront. Many assets can or need to be replaced within a period of 3-5 years so it makes sense to rent these and treat the entire rental payment as an expense to receive a 100% tax deduction. Renting rather than purchasing means you can completely write-off the equipment and receive a high level tax-benefit.
- Payments are 100% tax deductable.
- Classed as an operating expense that you run through your profit & loss statement.
- Does not appear on your balance sheet as debt or loan.
- GST is claimed on each payment.
- Finance 100% of the purchase price.
- Ability to bundle in the cost of installation and maintenance.
- Upgrade, add-on or replace the equipment during the term.
- Upgrade, return or purchase the equipment at the end of term.
Benefits of a Chattel Mortgage
Similar to that of a Home Mortgage, a Chattel Mortgage allows you to buy an asset which the finance company purchases on your behalf. The financier has a mortgage over the asset until you have paid it off, at the end of the term the asset is yours and there is nothing more to pay.
- Traditional form of equipment loan.
- Equipment is owned by the client at the end of term.
- Interest charges and fees relating to the transaction are tax deductible.
- Payments are a capital expense and are reported on your balance sheet as a debt or loan.
- GST is claimed upfront on the entire purchase price.
- The government is looking to extend the instant asset tax write-off benefit for eligible businesses until 30th June 2019, this allows any individual asset valued at $20k or below to be written off in full that same financial year and can be claimed multiple times for additional assets.
- For assets costing more than $20k you can claim depreciation to write down the cost over time.
If you would like to find out more please contact us for a confidential discussion or speak to the team at Geared Asset Finance directly on 1300 828 567, please let them know you were referred by Eurochill.
This advice is general in nature, please refer to your business accountant for further information