The finance scene has changed over the last ten years for the small to medium business owner since the introduction of GST.
Prior to the year 2000 the majority of business people would go out to purchase a vehicle or equipment for their business and finance it on a lease or a commercial hire purchase depending on their accountant’s advice and the business’ setup.
This made it quite simple for their accountants as all they had to do was add up the lease/HP payments for the financial year and that was the tax deduction. Read More
Moving on from consumer finance to small business and corporate finance, we’ll look at the example of purchasing IT equipment. Rental or operating lease facilities are often ideal for these groups as they need to be up to date with technology to keep pace with their competitors.
Rental Products
The rental products available in the market allow the small business to lease (off balance sheet) IT equipment which will no doubt be out of date in 2 to 3 years time. This product allows the business “the use” of the current IT equipment and at the end of the finance term they just hand it back and upgrade to a more current product. A fixed monthly payment is calculated at the time of purchase. Read More
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