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:: Leasing and Hire Purchase

Leasing & hire purchase offer two of the most flexible and convenient forms of business finance available today. 

Leasing & hire Purchase finance enables you to purchase vehicles, equipment or plant without typing up large amounts of your working capital. As your mortgage & finance professional Shire First Mortgages can help you structure leasing or hire purchase finance to suit you and your cash flow situation. You may also gain tax advantages if the goods are dedicated to generating a business income.

The terms of leasing & hire purchase finance are set at the beginning of the contract so you know exactly what your regular repayments will be. In most instances you will not be required to pay an initial deposit.

 
What’s the difference between hire purchase and leasing finance?

HIRE PURCHASE

Under a hire purchase agreement the funder buys equipment on your behalf. You enter into an agreement to repay the cost of the goods, plus interest. If you wish, you may pay a deposit towards the purchase price. Once you have repaid the cost of the goods plus interest, ownership is automatically transferred to you.

If equipment is used to generate business income, the interest component and depreciation on the asset may be tax deductible.

GST will apply to either the principal component or the full amount financed depending on the agreement and may be paid upfront or financed on the agreement. GST that has been paid may be claimed as an input tax credit.


LEASING

With a lease agreement, the funder buys equipment on your behalf and “rents” it to you. You must finance 100% of the purchase price. You make a regular payment over a term usually ranging from 1 to 5 years.

If equipment is used to generate business income, the entire rental payment may be tax deductible. At the end of the lease term, you may offer to purchase the goods for a pre-determined residual value.

 
How do I find out more information?

Contact us
for a personalized quote or more general information on leasing or hire purchase finance.


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RESERVE BANK DROPS CASH RATE BY 0.75%

At its meeting on 4/11/08 the Reserve Bank decided to drop the official cash rate by 0.75%pa to 5.25%pa - the lowest rate since 2003. We will see a lot of activity in the market as banks decide how much of the rate cut they will pass on to their borrowers. If you would like to know what rates your bank is offering give us a call.

 
GOVERNMENT INCREASES FIRST HOME BUYERS GRANT

The Prime Minister has announced an increase to the First Home Buyers Grant from $7,000 to $14,000. A further $7,000 will be available to buyers who purchase a newly constructed home. To find out more and how we can help you apply for the grant call our office or go to our first home buyer's page.

 
CONGRATULATIONS TO ALL OUR WINNERS

Thanks to everyone who visited our stand at the Gymea Village Fair. Congratulations to all our winners. Full details in our next newsletter.

 


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