Operating lease

An operating lease is an agreement between you and the Bank to rent equipment for use in your business for a fixed period. It can be an efficient and cost-effective financing strategy if you are continually upgrading your vehicles and equipment, or if you want to rent rather than own your asset.

At the end of the lease period, you simply return the equipment to the Bank (subject to return conditions), without the liability of a residual value.

Features

• Most depreciable assets can be financed
• Minimum operating lease amount is $10,000 over terms that range from two to five years
• Provides access to the latest equipment and technology without the associated risks of ownership
• Interest rate and repayments are fixed for the term of the contract

Business benefits

• Preserve your working capital with 100% financing
• Guards against obsolete equipment and offers the flexibility to respond to changing market demands
• Takes away the worry of disposing of obsolete equipment in a potentially weak resale market
• Lease rental payments may be off-balance sheet, providing scope to improve business performance ratios such as return on assets
• If you use the asset to generate income, rental payments may be tax deductible
• You may be able to claim an input tax credit for rental and other charges that are subject to GST

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. Applications are subject to the Bank’s normal credit approval. Fees and charges are payable.