There is more than meets the eye when it comes to finance

The thinking that ‘Finance is designed for businesses who can’t afford to purchase equipment outright’ is very far from the truth!

It is for smart business operators who what to maximizing their cashflow and reduce company tax.
Let’s take a look how a recent customer used the ‘Rental Finance’ facility to ‘SAVE MONEY’ on buying new Refrigeration Units.

Equipment Finance Amount: $37,500 inc
60 x $758.09 Monthly Finance Instalments $45,485.40
Less gst (off-sets gst paid on your BAS)
Less 30% Tax rebate (off-sets Company Tax payable)
SAVING $5,054.79 *

How is this possible?

The utilisation of a Rental Agreement facility is very tax effective for business as the business doesn’t effectively own the goods till purchase at terms end. Therefore each instalment is viewed and simply accounted for as a expense item (just like your phone bill) which attracts up to 100% a tax deduction on each payment made in the term of the loan. A tax deduction through depreciating if purchased outright takes many more years to claim back.

Other Business Building Benefits

The Balance Sheet isn’t effected with the liability of a large loan as the business doesn’t ‘owe’ the money used to buy the equipment.

A business retains Capital thus having the money working for them, not being lost acquiring equipment. This can be used on stock, Marketing, Investing…
Benson Leasing has Finance available for amounts as little as $2,000.00.
For a limited time iLease are offering Existing Customers Finance Pre-Approval up to $55,000.00

* iLease advise that the example provided above is an example only and may not apply to your specific business purchase and we recommend you consult your tax agent for advise on your individual circumstance.

Please call us on 1300 795 058 for all your financing needs.