The product is one whereby the “renter” hires the goods from the lender for an agreed period for a fixed payment per month. This option provides several advantages, particularly for public companies, schools and government bodies. An operating lease is a type of lease in which the financier retains ownership of the leased equipment. Under an operating lease there is no predetermined “residual” value to pay, as ownership does not automatically pass to the customer at the end of the term.
Equipment Rental
For high technology equipment (which usually becomes obsolete over the term of the lease), the risk of ownership is removed, as the customer can hand back the equipment and upgrade. It is also possible for the client to have the option to upgrade a portion of the equipment during the term of the contract without penalty. GST is charged to the hirer on each rental payment.
The client may, however, with the financier's agreement, continue to rent the equipment or offer to purchase the equipment for an agreed amount. Basically, under the operating lease/rental option, the customer has more flexibility at the end of the term as they may:
• Hand back the equipment and upgrade,
• Continue to rent equipment,
• Offer to purchase the equipment for an “agreed” value.
Equipment Finance Broking Firm
Established in 1990, Melbourne Finance Broking is regarded as one of the most progressive equipment finance broking firms in Australia. With over 40 staff around the country and realising enormous finance volumes (commanding significant buying power) the broking house deals with over 30 of Australia's banks and lending institutions, including some with exclusive agency.
Heavy Equipment Financing
Each broker or broking team within Melbourne Finance runs their own business specialty. The corporate entity, Heavy
Equipment Finance Australia (HEFA), was introduced by one of the teams in 2005 to more accurately signify their heavy equipment financing specialty, as well as better reflect their interstate expansion.
The HEFA team is unsurpassed in its experience and dedication to servicing the industries utilising heavy machinery, including earthmoving, construction, road making, mining, demolition, forestry and agriculture. When they say heavy machinery, they mean any kind of heavy machinery. They finance equipment that is:
• New
• Used
• Dealer and Private Sale
• Machinery Import
If you want more information on HEFA and would like to check out their range of products and deals, you can visit them at
www.hefa.com.au.
