What is the difference between commercial loan, commercial hire purchase and finance lease?
Generally speaking the differences between each of our equipment finance products are explained below. Important thing to consider: If you are unsure which product is right for your business, we recommend seeking financial advice from your accountant.
Finance Lease
Westpac purchases the asset at your request and rents it to you for an agreed period. The full rental payment is generally tax deductible. Suits customers using both 'accrual' or 'cash' accounting for GST purposes.
Westpac purchases the asset at your request and you purchase it from Westpac by instalments. The interest component of the repayment and depreciation on the asset are generally tax deductible. Generally suits customers using 'accrual' accounting for GST purposes.
Commercial Loan (chattel mortgage)
You own the asset and Westpac provides a loan secured by the asset. The interest component of the repayment and depreciation on the asset are generally tax deductible. Generally suits customers using 'cash' accounting for GST purposes.