JDFP - Diversity by Design

Equipment Leases and Mortgages

Asset Lease
Under Asset Lease the financier purchases the equipment on behalf of the business. The business then makes a fixed monthly lease rental for the term of the lease. At the end of the lease term the business can, a) pay out of the residual and take ownership of the equipment, or b) sell the equipment, or c) refinance the residual and continue the lease.

Chattel Mortgage
This form of finance allows the business to take ownership of the equipment at the time of purchase. The financier takes a mortgage over the equipment as security, and advances the funds at time of purchase. Once the contract is complete, the ownership of the equipment is passed back to the business

Commercial Hire Purchase
Under this arrangement the financier purchases the equipment on behalf of the business. The business then hires it over a nominated period. The business retains the use of the equipment for the term of the contract, but does not own the equipment. At the end of the contract term, after the total price of the equipment, less any residual, and interest charges have been paid in full, the business takes ownership of the equipment.

Please contact us for a disucssion about your personal situation and finance options.