Specialised Lending and Cashflow Solutions
At Proffin we endeavour to enhance our product offering through our alliance with the respective financial institutions that we are currently working with.
As part of our value add to your business, we can provide the following business solutions and/or products:
1. Equipment Finance
a. Commercial Hire Purchase
b. Leasing
c. Rental
Types of Equipment that can be funded are categorised as follows:
1. Primary Goods - mostly vehicles, including trucks.
2. Secondary Goods - machinery and other equipment.
3. Tertiary Goods - fitouts and technology equipment like computers.
Security
Chattel Mortgage - primarily over the goods itself.
2. Invoice or Debtor Financing
More suited to businesses that provide terms of trade to customers. Cashflow can be eased by directly funding the ledger.
3. Trade Facilities
Exporters and Inporters can benefit from a range of facilities including hedging strategies to protect your return.
Commercial Hire Purchase
Benefits & Features
Minimum term is 12 months (1 year)
Maximum term is 60 months (5 years)
Amount: $15,000.00 being the minimum
Owner: Generally the Financial Institution are the owners of the goods until such time as all monies owning on the agreement have been paid.
Financing
- Hire Purchase offers 100% finance of the goods.
- Customer can make a deposit or offer trade-in as an initial contribution, which allows the repayment amount to be calculated on the actual amount financed rather than 100% value of the goods.
- A large final payment can also be made, where the client can reduce their monthly commitment and take advantage of a higher level of working capital.
Security
- The goods being purchased are generally enough security for the agreement.
- If the customer is a company entity a directors/shareholders guarantee would be required or credit may request additional collateral security.
Fees
- There is a one off establishment fee involved with starting the Hire Purchase
Payments
- Repayments are fixed and generally in equal monthly instalments payable in advance.
- Payments can also be tailored to meet specific needs including seasonal instalments to coincide with clients income periods.
- Stamp Duty is paid over the term of the agreement.
Tax
- Hire Purchase interest and charges can be claimed as a tax deduction, providing the goods are used for business purposes as well as the depreciation of the goods.
- GST is a part of Hire Purchase Agreement and can be financed or paid up-front by the customer. If paid up-front, the GST portion will be collected by the respective Bank with the 1st rental and onforwarded to the ATO in some cases. A Tax Invoice will be provided and given to the customer.
- The cost price & GST is paid to the dealer on behalf of the customer by the Bank and is then repaid to the Bank by the customer over the term of the agreement and can be claimed by the customer in his BAS Statement or as directed by his accountant.
- Tax treatment may vary, customers should seek confirmation from accountant / tax agent.
Commercial Loan
Benefits & Features
Minimum term: is 12 months (1 year)
Maximum term: is 60 months (5 years)
Amount: $15,000.00 being the minimum
Owner: The customer is the owner of the goods, but the Bank will take a Bill of Sale over the goods and register with the Register of Encumbered Vehicles (REVS) themselves as an interested party.
Financing
- Commercial Loan offers 100% finance of the goods
- Customer can make a deposit or offer trade-in as an initial contribution, which allows the repayment amount to be calculated on the actual amount financed rather than 100% value of the goods.
- A large final payment can also be made, where the client can reduce their monthly commitment and take advantage of a higher level of working capital.
Security
- The goods being purchased are owned by the customer and are generally enough security for the agreement.
- If the customer is a company entity a directors/shareholders guarantee would be required or credit may request additional collateral security.
Fees
- There is a one off establishment fee involved with starting the Commercial Loan.
Payments
- Repayments are fixed and generally in equal monthly instalments payable in advance.
- Payments can also be tailored to meet specific needs including seasonal instalments to coincide with clients income periods.
- Stamp Duty is payable upfront (Advalorum Stamp Duty) with 1st rental.
Tax:
- Commercial Loan interest and charges can be claimed as a tax deduction, providing the goods are used for business purposes as well as the depreciation of the goods.
- GST is not a part of Commercial Loan Agreement.
- The cost price & GST is paid to the dealer on behalf of the customer and can be claimed by the customer in his BAS Statement or as directed by his accountant.
- Tax treatment may vary, customers should seek confirmation from
accountant / tax agent.