By choosing a finance lease the finance company will purchase the goods on your behalf, giving you a low fixed monthly installment over a fixed period with a residual value at the end of term.
With a finance lease, a residual value which adheres to ATO guidelines must be taken, the higher the value of the residual the lower the monthly installments.
The Benefits commonly associated with a lease include:
- Payments are 100% tax deductible if the equipment is used for business purposes
- You have the flexibility to easily upgrade equipment when required to ensure that your business has the right tools required for success
- At the end of term you may make an offer to purchase the goods from the financier at the residual value