More than a loan against a thing.
Asset finance enables businesses to acquire vehicles, machinery, equipment and plant without paying the full upfront cost; spreading payments over time so the asset earns while it’s paying for itself.
That part is straightforward. What isn’t straightforward is the structure. Chattel mortgage versus hire purchase versus finance lease versus operating lease. Fixed versus variable. Balloon versus no balloon. Stand-alone versus cross-secured. Each combination has implications for cash flow, tax, ownership and what happens at the end of the term.
Poorly structured asset finance constrains a business for years. Well-structured asset finance gets the asset earning fast and stays out of the way. That’s the work.
Five structures, different trade-offs
The right product depends on whether the business wants ownership, how the tax position is structured, and what happens at end of term. Side-by-side:
| Product | Key Feature | Ownership During Term | GST Reimbursement | Typical Tax Deductions |
|---|---|---|---|---|
| Chattel Mortgage | Loan provided to buy equipment, secured by the asset itself | Lessee | Claimed upfront* | Interest payments + depreciation |
| Hire Purchase | Lessee uses the asset while paying it off over time | Lessor (transfers to lessee at end of term) | Claimed upfront* | Interest payments + depreciation |
| Finance Lease | Lessee rents the asset with option to purchase at end of term | Lessor (lessee typically has option to acquire at end) | Claimed over time as part of lease payments | Lease payments |
| Sale & Leaseback | Asset sold to lender at agreed price, leased back via finance lease | Lender retains ownership | Claimed over time as part of lease payments | Lease payments |
| Operating Lease | Lessee rents the asset for an agreed period with no purchase option | Lessor | Claimed over time as part of lease payments | Lease payments |
Across the spectrum
From a single vehicle through to a multi-asset rollout for a manufacturing facility. The mechanics differ; the principles are the same.
Got an asset in the pipeline?
Send us the asset detail and the use case. We’ll come back with indicative pricing and a recommended structure inside a day.