Content

Asset finance products

To find out about our products click on the links below:

- Finance lease
- Operating lease
- Hire purchase
- Equipment loan
- Novated lease
- Fleet leasing and management
- Technology and healthcare finance

Applications and tools

- Acknowledgement and consent forms
- Anti-Money Laundering Identification form

Finance lease

A Finance Lease provides up to 100% finance for the acquisition of equipment to be used in your business.

Our Finance Lease offering is essentially a rental agreement where we (Commonwealth Bank) own the equipment, which the business then leases for an agreed term and rental amount. The business indemnifies us for the residual value at the end of the lease term.

Under the terms of a finance lease, the party taking out the lease normally has no option or right to purchase the equipment leased either during, or at the end of the agreement. However, in practice, most financiers will consider an offer to purchase their equipment for the residual value at the end of the lease term.

Features	Benefits
Payments can be customised to business cash flow Irregular or seasonal payment plans are available Payments are subject to stamp duty and GST	Up to 100% financing so working capital is preserved Flexible payment arrangements to maximise the cash flow of the business Ability to claim rental payments as a full tax deduction, where the equipment is used to generate assessable income

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Operating lease

An operating lease is an agreement to rent equipment for use in business for a fixed period of time. It can be an efficient and cost effective financing strategy if vehicles and equipment need regular upgrading, or if renting is more suitable than owning the asset. At the end of the lease period, the equipment is returned to the financier (Commonwealth Bank), subject to return conditions, without obligation for the residual value.

Features

Benefits

Payments can be customised to suit business cash flow
Lease payments may be made off-the-balance sheet, providing scope to improve business performance ratios such as Return on Assets
Rentals are subject to stamp duty and GST

Provides 100% financing so working capital is preserved
Guards against obsolete equipment and offers the flexibility to respond to changing market demands
Provides access to the most modern equipment and technology without the associated risks of ownership
Takes away the concern of disposing of equipment with a weak re-sale market
Offers flexible payment arrangements
Allows the business to claim the full amount of the rentals as a tax deduction (provided the equipment is used to generate assessable income)

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Hire purchase

If your business's aim is to ultimately own the vehicle or equipment you want to hire, a Commonwealth Bank Hire Purchase Agreement may be a suitable option.

A Hire Purchase Agreement is an arrangement to purchase equipment subject to payment terms. During the term of the agreement, the financier (Commonwealth Bank) owns the vehicle, plant or equipment. Ownership is automatically transferred to your business when it makes the final payment. The choice is also available to purchase the equipment at any time during the term of the agreement.

Deposits are optional but generally not required. Stamp duty is payable on repayments in most States and Territories. Hire Purchase Agreements are subject to GST. Where the terms and charges are disclosed in the Hire Purchase Agreement, GST is calculated on the cost of the equipment less the Input Tax credit applicable to the purchase. Repayments are not subject to GST.

Features	Benefits
Repayments can be tailored to suit business cash flow Irregular and seasonal repayment plans are available	Ownership automatically transfers to the hire purchaser with the final repayment Equipment can be purchased at any time during the term of the agreement No need for a deposit Flexible repayment arrangements The interest component of the repayments, and the depreciation on the equipment can be claimed as tax deductions provided the equipment is used to generate assessable income

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Equipment loan

An Equipment Loan (often referred to as a Chattel Mortgage or Bill of Sale) is a loan agreement where funds are borrowed to purchase equipment. Security for the loan is provided by way of a mortgage to the lender (Commonwealth Bank) over the equipment financed.

Features	Benefits
There is no need for a deposit Choice of flexible payment arrangements Neither the borrowing or the repayments attract GST	Ownership remains with the borrower throughout the term of the loan (however, the equipment is mortgaged to Commonwealth Bank) The loan can be repaid at any time during the term of the agreement The interest component of the payments and the depreciation on the equipment are generally tax deductible, provided the equipment is used to generate assessable income

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Novated lease

Commonwealth Bank Novated Leasing is a flexible, portable and convenient way of acquiring a motor vehicle for both employers and employees.

Features

Benefits

Employees can lease the motor vehicle of their choice, while the employer pays the rentals and other running costs (if applicable) directly from the employee's salary
Employees can select the car they want, providing of course, that the repayments can be managed within their overall budget (and subject to Commonwealth Bank's credit standards being met).
At the end of the lease the Commonwealth Bank will sell the vehicle and may accept an offer from the employee to purchase the vehicle. The employee has no obligation to buy.

Potential tax benefits for both employer and employee
Reduced administrative costs for the employer
Vehicle may be leased entirely for private use

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Fleet leasing and management

If more then five vehicles are required by your company, FleetAustralia has a range of options for the funding and management of your vehicle fleets.

Features	Benefits
Fully underwritten maintenance Management of company owned vehicles and plant Provision of fuel cards Insurance programs Registration and compulsory third party insurance Acquisition and disposal services A roadside assistance program Simple systems and reports to allow you to administer GST and FBT Regular and on demand reporting	Cost-efficiency Convenience Customised to meet your business needs

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Technology and healthcare finance

Technology and Healthcare Equipment is constantly being upgraded with new features and benefits. Keeping pace with the changes can be an administrative challenge, as well as an inefficient use of valuable capital. To make it easier to gain access to the latest Technology and Healthcare Equipment, we can offer you a range of managed financial solutions to finance new and existing equipment.

Features	Benefits
Select the Technology or Healthcare Equipment that suits your business needs We provide an estimate of the monthly repayments for the period of time the Technology or Healthcare Equipment is needed At the end of the financing period, the equipment can be returned and replaced, or kept under ongoing arrangements, or purchased	Competitive funding rates Cost-effective World class asset management system

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Application and tools

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Important information
Applications for finance are subject to credit approval. Full terms and conditions will be included in the loan offer. Fees and charges are payable. Employers and employees are encouraged to seek professional advice on all aspects of novated leasing before proceeding.