Diamond Capital
Asset Lease
An Asset Lease enables the client to have the use of their business equipment and the benefits of ownership, while the financier retains actual ownership of the equipment.
Tax Deductible
Asset Lease equipment transactions do not appear on your balance sheet as a liability. As such, tax deductions for the lease payments can be claimed.
Reduced Cost Price
As the GST contained in the equipment purchase price is claimed back by the financier, only the equipment’s price exclusive of GST is financed, lowering monthly payments.
Tailored Payments
The Lease agreement gives you the ability to make tailored lease payments for tax deduction or cash-flow purposes.
Why choose an Asset Lease?
Flexibility
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FAQ
Asset Lease
The financier purchases the equipment on behalf of the client, who then pays the financier a fixed monthly lease for the term of the lease. At the end of the lease, the client can either pay a residual on the lease and take ownership of the equipment, sell the equipment or re-finance the residual and continue the lease.
GST is charged on the monthly lease payment and on the residual value at the end of the lease. Where the client is registered for GST, they can claim some or all of the GST contained in the lease payment and the residual value as an input credit on their next Business Activity Statement.
The client can claim the lease payment as a tax deduction.
Please check all facts with a professional and qualified Accountant or CPA.