Financial Services Overview

With EzeHire Financial Services you know that you are working with a company that is actually putting its own funds on the line. 

The definitions of the financial services products listed in this financial services overview are very broad, before entering into any contract we recommend you seek independent advice from your accountant. This will ensure you choose the right product for your requirements. If you have any more questions simply call us on 1300 789403 or email info@ezehire.com.au .

When thinking of finance you first need to ask yourself one question. Is the equipment for business or personal use? The answer to this question will basically determine what type of loan you require. I f the equipment is for business use you basically have 3 options, Rental-Finance, Corporate Hire or Leasing.

If the equipment is for personal use then a consumer lease is for you.

Consumer Finance

Consumer lease

 Is an every day type of lease or loan. Generally taken for terms of up to 5 years with regular fixed repayments. Payments can be fixed for the term of the contract or variable over the term. Consumer lease agreements are similar to the Rental- Finance agreements used in the corporate world and give the consumer the advantages of a Rental Finance agreement with the added protection of the consumer credit code. There is no interest rate applicable to these leases as they are a contract to hire or lease the goods for a long term (usually 4-5 years) for a fixed weekly payment which will depend on the age of the equipment, the cost of the goods you are leasing, plus any Extended Warranty or Shared Services Agreements or Damage Waiver that are included in the lease and the term.

Although under the definition of a lease you gain no equity in the equipment; it is common practice for the lessee to make an offer for the equipment bearing in mind any residual value at the end of the contract to take ownership. As with any finance make sure you ask enough questions to be comfortable with the loa n ' s options and make sure you read the fine print. 

Characteristics of a Consumer Lease.

·Available to consumer individuals where the equipment is for private use.

·Lease rentals are generally not tax deductible.

·Lessee responsible or the running costs and risk of the equipment.

·The amount leased is the purchase price of the equipment

·Repayments and the residual attract GST.

·Residual is an estimation of the equipments value at the end of the term.

Approval can be given over the phone or on-line in under an hour and almost certainly within 24 hours. eZeHire believes that with our Service Level Agreements included we offer some of the most competitive rates in the market . So if you would like more information or would like to compare an existing quote.

For more information about consumer leasing or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Business Finance Options

Rental Finance

Rental finance is basically similar to a Lease but is more tax effective because it is an off balance sheet item that is fully tax deductible in pre-tax dollars. In essence it allows you to " rental-finance" equipment with no capital outlay the same as a finance lease but without the accounting costs and depreciation hassle because it is an off balance sheet item. You are Rental Financing the equipment and ownership remains with the financier (lessor). You are responsible for regular repayments however the risks and benefits of ownership are transferred to you as the lessee. There is usually no deposit and the monthly repayments are worked on the purchase price of the equipment and any Extended Warranty or Shared Services Agreements. The terms range from 1-5 years. EzeHire will also consider trade-ins or buy-back of equipment.

Although under the definition of a Rental you gain no equity in the equipment; it is common practice for the lessee to make an offer for the equipment bearing in mind the residual value at the end of the contract to take ownership.

Characteristics of Rental Finance.

·Available to companies and individuals where the equipment is for business use.

·Rentals payments are generally 100% tax deductible.

·Lessee responsible for the operating costs of the equipment

·Residual risk of the equipment remains with the Financier.

·Repayments are an off balance sheet item.

·Repayments and the residual attract GST.

For more information about Rental Finance or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Corporate Hire Purchase.

Also known as CHP or simply Hire Purchase it is available to companies and individuals for the acquisition of business equipment or machinery. The terms vary between 1 and 5 years and the interest rate is fixed for the term of the contract. Shared Services Agreements, Extended Warranty or Damage Waiver and Insurance etc can also be included in the contract.

Generally contracts are structured with a regular monthly payment set to payout the full amount by the end of the term. Alternatively by structuring the contract with a larger balloon payment at the end of the term reduces the monthly payment to suit your individual budget. At the end of the term you have the option to pay out the full amount or refinance over a further period of time.

Characteristics of a Corporate Hire Purchase:

Goods must be used for business purposes.

Easily structured to suit your budget.

Deposit can be paid up front to reduce the amount that you borrow.

No GST on the repayments. Click here for more information on GST and Hire Purchase.

GST is paid at the time the equipment is purchased and input tax credits (ITC) can be claimed immediately for accruals reporting or over the term of the agreement for cash reporting.

The asset and liability are included on the balance sheet. (Companies)

Interest and depreciation is claimable as an expense for accounting and taxation purposes. 

For more information about consumer leasing or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Leasing

Leases are a tax effective product that allows you to " leas e " equipment with no capital outlay. As the name implies you are leasing the equipment and ownership remains with the financier (lessor). The Lessee is responsible for regular repayments however the risks and benefits of ownership are transferred to you as the lessee. With a lease usually no deposit or trade-ins are made and the repayments are worked on the purchase price of the equipment and any Shared Services Agreements or Extended Warranty. The terms range from 1-5 years with a residual at the end of the term.

Although under the definition of a lease you gain no equity in the equipment, it is again, common practice for the lessee to make an offer for the equipment bearing in mind the residual value at the end of the contract to take ownership.

Characteristics of a Financial Lease.

Available to companies and individuals where the equipment is for business use.

Lease rentals are generally tax deductible.

Lessee responsible or the running costs and residual risk of the equipment.

Taxation guidelines apply to terms and residuals.

The amount leased is the purchase price of the equipment less the GST component which is claimed by the Lessor.

The liability is included in the balance sheet.

Repayments and the residual attract GST.

Residual is an estimation of the equipment value at the end of the term.

For more information about consumer leasing or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Operating Lease

The difference between a finance lease and an operating lease is that the maintenance and servicing costs of the equipment are included in the operating lease payments . The fixed repayment includes the lease and ongoing maintenance costs.

·In the case of a motor vehicle these are typically petrol, registration, tyres etc.

·In the comparison of equipment the operating costs typically include, extended warranty support and a comprehensive Shared Services Agreements 

The residual risk of the vehicle or equipment remains with the lessor (financier) and the equipment is handed back at the end of the term.

Characteristics of an Operating Lease;

Repayments are an off balance sheet item.

Easy Accounting as the equipment cost and all operating expenses are covered in the fixed repayments.

No residual risk.

For more information about consumer leasing or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Novated Lease

Novated leases have become popular as a means of including a car as part of your salary package to reduce your taxable income. As of July 2007 eZeHire will be offering novated Leasing for business equipment such as notebooks etc. In the case of equipment leasing, operating costs typically included for extended warranty and a comprehensive Shared Services Agreements.

A novated lease is effectively a three way agreement between an employee, their employer and the Lessor or financier. The employee leases a vehicle or equipment and through the Novation agreement the employer undertakes to make the repayments on behalf of the employee for the duration of their employment.

Lease payments and equipment maintenance or vehicle running costs are subject to fringe benefits tax. In the case of a vehicle the fringe benefits tax is calculated on a sliding scale depending on the value of the vehicle and annual kilometers traveled. As with a financial lease the residual risk lies with the lessor, likewise any profit on sale benefits the employee. Click here for more detail.

Some of the Benefits a Novated Lease.

To the Employer

·An off balance sheet item.

·Lease repayments and running costs are generally tax deductible.

·No residual risk.

·No unwanted equipment at the end of the lease.

·Able to be used in Salary package to attract and retain good staff.

To the Employee

·Payment made by the employer.

·Possible taxation benefit.

·Transferable in the event of a change of employer.

·No restrictions in the use or brand of equipment provided.

·Can offer to purchase the vehicle at the end of the term.

For more information about consumer leasing or our other financial services or to lodge an enquiry click here info@ezehire.com.au or call 1300 789403 to speak to one of our consultants.

Find out here about our "Low Doc" hassle free Finance