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available in the market allow the small business to lease (off balance sheet) IT equipment which will no doubt be out of date in 2 to 3 years time.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
The long awaited Small Business and General Business Tax Break legislation was passed by the Senate last month.
Small Business Investment Allowance
In summary, businesses with turnover less than $2 million will be able to claim a 50% tax deduction on any purchases of new equipment costing more than $1,000. This is up from the proposed 30% and has been extended out by 6 months. The Investment Allowance applies to most types of new plant and equipment, including motor vehicles and computer equipment. To be eligible, the equipment must be purchased between 13 December 2008 and 31 December 2009, and be installed and ready for use by 31 December 2010. Read More
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