Qualifying Criteria for No Financials Finance
You need an active ABN for your business trading over 6 months
No security of your home or other assets you own is required for the finance
Get a low Doc finance upto $150k. Pre-approved in just 24-48hrs
You require clean credit history for you and your business for approval
Choose 100% finance option if your are a home owner or 20% deposit without
Equipment Finance at a glance
Why Use Oyster Hub for your asset finance
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FAQ - Asset & Equipment Finance
Choosing the right type of asset finance can help save you time and money to invest in growing your business. You can also reduce the risk of owning obsolete equipment and there can be various tax outcomes too.
Oyster Hub considers all manner of assets for finance. From vehicles for commercial and personal use to heavy machinery and shop fit-outs. We offer finance solution for equipment such as furniture and technology for offices, medical institutions, retail shops, warehouses and factories.
When considering asset finance options, ask yourself:
- how much capital do I need to grow my business?
- when do I need to smooth the bumps in my cash flow?
- what are the tax outcomes of asset financing?
- how long will I need the equipment and will I need to upgrade it?
- is technology rapidly changing in my industry?
- do I want to 'finance to own' or 'finance to return' my asset?
Generally speaking, asset finance options include: Commercial Hire Purchases; Financial and Operating Leases; Chattel Mortgages; Novated Leases; and Technology Rentals. Each is suited to different commercial circumstances, so when considering your options, you may want to talk to your accountant or tax advisor.
With this type of finance, you hire and use the asset until the last payment. When you make the final instalment, title of the asset transfers to you. You can tailor payment options, including the loan period, a deposit and a larger final balloon payment. To help manage your cash flow, structured payments can be established according to your cash flow.
When acquiring plant, equipment and vehicles for your business, you have the option to lease or buy.
Leasing means you borrow your plant, equipment or vehicle under a contract. Leasing requires less commitment than buying and makes it simple to upgrade when your lease finishes. However, there may be restrictions in place on what you can do with the plant, equipment and vehicles you lease, depending on your contract.
Buying means you purchase and own the plant, equipment or vehicles outright. If you don’t have sufficient cash to buy it outright, there are finance products available to help you. The financier will keep an interest in your plant, equipment or vehicle until they’re paid back. Buying will mean more commitment, as you won’t be able to simply return it after a lease runs out. It also means you have freedom to make alterations to fit your needs.
A motor vehicle is a major expense. When deciding whether to buy or lease the motor vehicles you need for your business, consider the advantages and disadvantages of each option.
Pros and cons of leasing a vehicle
- You can easily upgrade your vehicle every two or three years when your lease ends.
- You generally need less money upfront to lease.
- As the vehicles you lease tend to be newer, they might still be covered by their manufacturer’s warranty. Your lease may also cover some of the repair costs if required.
- It may make managing your cash flow easier, as you won’t have your money tied up in a depreciating asset.
- It can end up costing just as much as getting a car loan when you take into account the monthly repayments, fees and charges.
- You won’t be able to make any alterations to the vehicle.
- You can’t claim the car as your own asset for other borrowing or financial purposes.
- You may not be able to get approval for a lease if you have a bad credit history.
- You may be locked in to making payments for the entire lease period, even if you cease using the car.
If you use a motor vehicle for your business and you're registered for GST, you might be entitled to claim a credit for the GST you‘ve paid in the price of the vehicle as long as you have a tax invoice.
If your vehicle is used partly for business, you will need to apportion your GST credits based on how much you use the vehicle for business purposes. You can make adjustments later if the proportion of business use changes. If your vehicle is a car, you can only claim GST credits up to the luxury car tax limit.
You have to account for GST when you dispose of a motor vehicle if it is a taxable sale.
Find out more on GST and motor vehicles on the Australian Taxation Office website, including information on rules concerning:
- luxury cars
- leased vehicles
- purchasing second-hand
- disposal to an associate
- disposal by a charity.
Your plant and equipment, such as machinery, tools, appliances, office furniture and office equipment, is vital for you to operate your business. To make sure you are getting the best deal, do your research before you decide whether to buy or lease what you need.
Aside from comparing the overall costs of buying or leasing, make sure you also consider:
- ongoing maintenance
- tax deductions that you may be eligible for
- equipment becoming out-dated or expiring
- the flexibility between leases and loans.
You can have a mix of leased and purchased equipment to best fit your business’s situation and needs.
Pros and cons of leasing your plant and equipment
- It’s easier and quicker to update to the latest equipment if you lease it than if you buy it.
- You can budget for the equipment over a longer time as you will make smaller regular payments rather than paying a lump sum upfront to buy.
- You may be able to claim your leasing costs as a tax deduction each year if the equipment is solely used for your business.
- You will have more flexibility to try something new, as you don’t have as much commitment as if you buy. This also gives you more choice when it comes to the type of equipment you get.
- If something breaks or has issues due to normal wear and tear, the leasing company is usually in charge of fixing the equipment, saving you maintenance and repair costs.
- You may end up paying more over time than you would if you had bought it upfront.
- As you don’t own the equipment, you won’t be able to sell the equipment once you are finished. So there is no potential to make any money back.
- You may be forced to pay for and keep a piece of equipment for longer than you need if the lease term is strict.
- Depending on your leasing company, the brands or models you want could potentially be unavailable and you may have to settle for something else.
- As maintenance usually is the responsibility of the leasing company, it may be difficult to get things fixed if you disagree about the terms and conditions of the repairs. There may also be additional problems if your leasing company requires you to use certain repairers, who may not be located near you.