Car and equipment finance
Did you know that Provincial Group help arrange your finance to purchase a vehicle or plant and equipment for your business via our alliance with Reach Finance Solutions? We can assist you to finance your plant and equipment upgrades with a range of loan options that can be easily designed to suit your cash flow.
Whether your business is large or small, whatever your industry, our equipment finance team can help with all types of operating leases and equipment rental. Because we take the time to listen and understand your business and asset strategy, we can structure the deal according to your objectives. This gives you the flexibility to grow without excessive strain on the lifeblood of your business – your cash.
Consumer car loans
A car loan is suitable when the vehicle is used wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time. The motor vehicle is the only security needed, although in some circumstances a guarantee may also be required. The loan term and balloon payment can be tailored to suit individual circumstances.
Secured car loans
Provincial, via it referral partner Reach Finance Solutions, can arrange finance for cars, boats, motorbikes, jet skis and other registrable items. The most common form of financing is through a secured loan. The asset purchased is used by the lender as security for the loan often allowing a lower interest rate in return. Secured loans (consumer mortgages) are designed for people purchasing for private use. Our products include chattel mortgage, hire purchase, novated lease, consumer car loans. Leasing, hire purchase and chattel mortgage loans are available for vehicles used for at least 50% business needs. At Provincial we make sure the client application meets all lending criteria to provide the best chance of securing approval.
An asset lease enables you to have the use of your business equipment and the benefits of ownership while a lender retains actual ownership of the equipment. The lender purchases the equipment on your behalf and you then pay the lender a fixed monthly lease rental for the term of the lease. At the end of the lease you have the option to either pay a residual on the lease and take ownership of the equipment, sell the equipment or re-finance the residual and continue the lease.
Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing new plant & equipment. It is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new equipment or upgrading existing equipment.
Commercial hire purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit individual circumstances.
Whether you need to increase production capacity or update old equipment there comes a time in every business when an investment in plant and equipment is a must. The question is how to manage the purchase of expensive business equipment without tying up precious cash resources. Equipment financing is the solution!
There are many benefits to renting or leasing your plant and equipment including:
- Fixed monthly costs help you budget and manage your cash
- Payments are tax deductible
- Leased equipment does not appear on your statement of financial position (balance sheet)
- Contract terms are negotiable so we can arrange a deal that meets your financial needs
Whatever industry you are in and regardless of whether your business is large or small our referral partner, Reach Finance Solutions, can help with all types of operating leases and equipment rental. We take the time to understand your business and asset strategy so we can structure finance according to your objectives. This gives you the flexibility to grow without excessive strain on the lifeblood of your business – your cash.
At Provincial we can also help organise a pre-approval for your vehicle or equipment finance purchase.
Pre approvals are valid for 60 days and enables you to explore the market with confidence, armed with the assurance that your finance is already in place.
A novated lease allows you as an employee to structure your car finance instalments using salary packaging. If you are contemplating the purchase of a new car here are some of the key benefits in considering a novated lease via Provincial are;
Increase your net income – Arguably the biggest benefit of novated leasing for employees is that you pay for vehicle instalments from your pre-tax-salary. This effectively reduces your income tax and increases your disposable income. Your monthly instalment is deducted directly from your salary.
Purchase a new car that you don’t have to use for business – You do not need to use their vehicle for business purposes. You can lease any new or used vehicle of their choice. This flexibility allows you the independence of buying a new car in your own merit, with the added benefits of salary packaging.
Pay no GST on your car purchase – By leasing a vehicle as part of a salary package means you don’t pay GST on the initial car purchase price. Under this arrangement the financier buys the car on your behalf.
A novated lease is a three way agreement between the employer, employee and the lender. The employer, employee and financier sign a novation agreement whereby the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer makes the monthly lease payments on behalf of the employee. Should the employee leave his or her employment for any reason, the novation agreement ceases and the obligations assumed by the employer revert to the employee as the registration is in the employee’s name.
The choice of vehicle remains with the employee ensuring a vehicle to fully meet their needs. The employer deducts a portion of the vehicle financing and running costs from the employee’s pre-tax income reducing the employee’s taxable income and the amount of tax payable. There is no need for the employee to do anything on their tax returns as the employer and lender attend to this. If a vehicle is purchased using another form of finance, 100% of the costs will be taken from after tax income providing no tax benefit at all. With the option of a fully maintained lease, vehicle running costs such as maintenance, registration, insurance costs and projected fuel can also be included in regular salary deductions. Provincial, via it referral partner Reach Finance Solutions, can also assist with finding the right vehicle as well as offering fleet discounts on the purchase price and running costs.
Our complimentary car buying program
Did you know that we also offer our client’s access to a complimentary car buying service? We’ll take the stress out of negotiating the price of your new car away from you. In many cases we can save you thousands of dollars We’ll take the stress out of negotiating the price of your new car away from you. In many cases we can save you thousands off the retail price of your new car by negotiating pricing on your behalf.
Working with our dedicated network of car dealerships our car buying service provides expert advice, & recommendations to help you with your new car purchase.
For more information please contact our dedicated asset finance specialist Ben Whitnall to discuss how we can assist you in relation to your vehicle or equipment finance requirements.