Operating Lease

Description

An Operating Lease is an agreement to rent equipment for use in your business for a fixed period.
Operating Leases are suitable for businesses that constantly upgrade vehicles and equipment for reasons such as rapid obsolescence.
In an Operating Lease, you hand the equipment back to the Financier at the end of the lease term without obligation for a residual value.

Deposits and Payments

A deposit cannot be made to an Operating Lease. Lease payments may be off-balance sheet (subject to auditor approval), providing scope to improve business performance ratios such as Return on Assets. Payments are subject to Stamp Duty and GST. Payments are made directly from a nominated account and can be customized to your business cash-flow.

Benefits

Operating Leases enable you to hedge against equipment obsolescence and offer the flexibility to respond to changing market demands.
Access to the most modern equipment and technology without the associated risks of ownership.
No need to worry about disposing of equipment that may have a weak re-sale market.
Flexible payment arrangements.

GST

GST is payable on lease rentals and early terminations.