Compare asset finance options

 

  Equipment rental Finance lease Commercial loan
Definition

We buy the asset on your behalf and charge you a monthly fee for your use of the asset.

We buy the asset on your behalf, you pay us a monthly lease amount and purchase the asset with a final payment transferring title.

We pay the vendor directly on your behalf, who releases the asset to you.

Ownership

Bigstone owns the asset for the life of the facility.

Bigstone owns the asset for the life of the facility.

You own the asset from the date funds are disbursed.
At the end of the term You have the right to continue to rent, make an offer for the equipment or return the equipment. You have an obligation to pay the residual amount. You own the asset once the final payment is made.
Balloon/Residual payments No – balloon payments on rental products. Yes - depending on the term of the loan and the asset type. Must reflect market value. Yes - depending on the term of the loan and the asset type. 
GST implications* GST is claimed on each payment. GST is claimed on each of the repayments made.  GST is claimed up front on the purchase price of the asset in accordance with the tax invoice.
Tax implications* Full rental payment is deductible upon payment being made. Interest payments are deductible upon repayment being completed. Depreciation may be claimed by the borrower.  Interest payments are deductible upon repayment being completed. Depreciation may be claimed by the borrower.
Maximum term 3 years 3 years  3 years
Flexibility Asset may be replaced or upgraded with no penalty payouts. Asset must be retained for the term of the contract and contract will be paid out if there is an asset replacement. Asset must be retained for the term of the contract and contract will be paid out if there is an asset replacement.
Payment structure Monthly – can be structured Monthly – can be structured  Monthly – is on fixed structured
Maximum residual N/A 20% 20%

*Psst....we don't provide financial advice. All tax advice provided is general in nature. You should discuss your situation with a qualified financial adviser or accountant before making any final decisions.

How can we help?

Are there any exclusions?

We provide finance for most assets and equipment, with a few exceptions:

  • Private sales
  • Low volume assets, non-movable assets, mining equipment, aircraft and customised equipment
  • Used equipment

What is a residual amount?

A residual amount is a one-off payment at the end of the loan term. Sometimes referred to as a balloon payment, this payment is due after all regular weekly repayments have been made and is factored into the total cost of your loan at the beginning of the term.

As a quick example, if you borrow $100,000 with a residual payment of 40%, your weekly repayments over the life of the loan will only total 60% of the principal and interest. You will pay the remaining 40% in either one lump sum or you can refinance it for up to another two years. This helps keep your regular repayments down and lets you factor the residual payment into your cash flow.

What if my business is less than two years old?

At this stage, we only lend to businesses that are more than two years old. Once you’ve hit the two year mark, you can come back and apply for a loan.

What documents do you need?

The documents you need to provide will vary depending on how much you want to borrow.

  • For loans up to $99,999 application + invoice.
  • For loans above $100,000 application+ invoice + bank statements + financial statements.
The invoice can be attached directly to your application. If you need to provide bank statements and/or financial statements, we will send you an email once you submit your application with further instructions to securely connect your online banking.

Do I need to own property?

You don’t have to own property to be approved for a loan, but we won’t be able to instantly approve your application.

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For any other questions, use the button below to get in touch with us via phone or email.

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