Using a vast network of manufacturers and suppliers, Fingo will take care of sourcing the equipment that you require. We’ll then create a lease agreement mapping out a payment plan, that is dependent on the piece of equipment and how long you require it for. You’ll pay this rental amount routinely to Fingo until the lease agreement expires. If you’d like to continue using the equipment beyond the initial lease agreement, you have several options. You may request to continue the lease, sell the equipment back, or purchase the equipment permanently by paying a residual amount.
Expand your business with an asset lease
Benefits of Fingo's asset finance
- Professional backing
- No paperwork
- Fully transparent
GST is incurred only on the monthly charge for the lease, and the residual when the lease is up, however GST can be claimed in part or completely on input credit tax. On top of this, the lease rentals can be claimed as a tax deduction, making this option economic and efficient in every sense of the word.
Fingo also offers Equipment Rental, Commercial Hire Purchase and Specific Security Agreement (formally known as a chattel mortgage) as a means to finance your chosen asset.
Commercial hire purchase (CHP)
What is commercial hire purchase (CHP)?
A commercial hire purchase (CHP) is a commercial finance product where you hire the vehicle from the lender for a fixed monthly repayment over a set period. Otherwise known as corporate hire purchase, hire purchase or offer to hire. It’s a good choice if you are registered for GST on an accruals or cash accounting basis.
How does commercial hire purchase work?
The lender agrees to purchase the vehicle on your behalf and then hires it back to you over a set period. You’ll have full use of the vehicle for the term of the contract, you just won’t be the owner. At the end of the term, when the total price of the vehicle (minus any balloon/residual amount) and the interest charges have been paid in full, the customer takes ownership of the car.
A specific security agreement (formally known as a chattel mortgage) involves a finance company lending you money to purchase a vehicle that will be primarily used for business purposes. Set repayments are then made on a monthly basis. You’ll own the vehicle outright, however, the finance company will place a “mortgage” over the vehicle, as security against the loan.
Once the loan and any Balloon/Residual Value (the final balance on the vehicle) has been repaid, the finance company will remove the mortgage. Alternatively, you can choose to re-finance the Balloon/Residual Value or trade the vehicle in.
How does a chattel mortgage work?
The lender will provide the funds for you to purchase the chattel and you’ll take ownership at the time of purchase. The lender takes a ‘mortgage’ over the chattel as security for the loan. Once the contract is completed, you’ll own the chattel outright.