Financial Services Products
Overview
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Ezehire offer a range of Financial Services products by partnering with major
institutions.
The definitions of the financial services products listed here 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.
When thinking of finance you first need to ask yourself one question. Is the equipment for business or personal use?
Theanswer to this question will basically determine what type of loan you require.
If 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
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 will depend on the age of the equipment, the cost of the goods you are leasing, plus any Extended
Warranty or SLA or Service Level 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 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
Business Finance Options
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 Service Level 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 or call
1300 789403 to speak to one of our consultants.
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. Service Level 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 CHP or our
other financial services or to lodge an enquiry click here
.
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). You are
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 Service Level Agreements, Extended Warranty or Damage Waiver . 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 leasing or our
other financial services or to lodge an enquiry click here
.
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 SLA (Service Level Agreement).
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 leasing or our
other financial services or to lodge an enquiry click here
.
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 SLA (Service Level Agreement).
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.
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.
- Business Equipment Leasing
Business Equipment Leasing for IT, Audio Visal and other equipment.
- Finance Lease
A Finance Lease is an attractive finance option for sole proprietors, partnerships and companies that use the 'cash' method of accounting
- Lease and Asset Management
Lease and Asset Management - “Asset management" is a term that basically means the ability to plan, acquire, manage, service and recycle assets in a systematic manner within a leasing infrastructure.
- Rental Finance
IT and Equipment Rental finance for almost any technonolgy based equipment.
- Hire Purchase
Hire Purchase - Hire Purchase is a similar agreement to that of a Chattel Mortgage, only in that the lender holds title of the security until all monies owing are paid.
- Website Leasing
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