Finance Lease
Use the Asset. Preserve Your Capital.
1800 678 880Mon–Fri 8am–6pm AESTA finance lease lets your business use an asset without ownership, keeping capital free and potentially improving your balance sheet position.
- Compare 30+ lenders without touching your credit file
- Soft enquiry only — no credit checks until the right option is on the table
- Decisions in as little as 24 hours
$10K+
Finance from
Off-B/S
Balance sheet option
1–5 Years
Lease terms available
30+
Lenders on panel
What is a Finance Lease and Is It Right for Your Business?
A finance lease is a business finance arrangement where a lender purchases an asset and leases it to your business for an agreed term. You use the asset and make regular lease payments, with options to purchase, renew, or return the asset at the end of the term. Unlike a chattel mortgage, the lender retains ownership throughout. You can also compare it with a commercial hire purchase or explore our full range of equipment finance solutions.
What is a Finance Lease?
The lender purchases an asset and leases it to your business for an agreed term with fixed rental payments. At the end of the term, you can purchase, extend, or return the asset.
Advantages
- Lender retains legal ownership throughout the term
- Your business has full use of the asset
- Fixed lease rentals for predictable cash flow
- Option to purchase, extend, or return at end of term
Finance Lease vs Operating Lease
A finance lease transfers substantially all risks and rewards of ownership to your business and is typically recognised on your balance sheet under AASB 16. An operating lease is generally off-balance-sheet.
Advantages
- Finance lease: risks and rewards transferred to your business
- Operating lease: lender retains risks and rewards
- AASB 16 treatment varies, seek accounting advice
- Right-of-use asset may appear on balance sheet
Who is a Finance Lease Best Suited For?
Suited to businesses that want full operational use of an asset without ownership responsibilities, popular in technology, medical, construction, and fleet management sectors.
Advantages
- Businesses looking to preserve working capital
- Technology and IT equipment financing
- Medical equipment and diagnostics
- Fleet management and regular vehicle upgrades
Tax Treatment of a Finance Lease
Lease rental payments may be deductible as a business expense, simplifying tax treatment compared to ownership-based structures. Your accountant can confirm deductibility for your situation.
Advantages
- Lease rental payments may be fully tax deductible
- GST on lease rentals claimable progressively each payment
- Simpler tax treatment compared to depreciation schedules
- Consult your accountant to confirm deductibility
How It Works
Simple steps from enquiry to asset access, with decisions typically within 24–48 hours.
Tell Us What You Need
Complete our quick online form detailing the asset you need, your preferred term, and your business information. No paperwork required at this stage.
We Source the Best Lease
Our team compares finance lease options across 30+ lenders to find the most competitive rental rate and structure for your needs.
Review and Accept
We present your options clearly, rental amount, term, residual value, and end-of-lease choices. You choose the structure that suits your cash flow.
Asset Put to Work
Once you sign the lease agreement, the lender purchases the asset from the supplier and makes it available for your business use immediately.
Common Questions
Does my business own the asset under a finance lease?
No. Under a finance lease, the lender (lessor) retains legal ownership of the asset throughout the lease term. Your business has the right to use the asset fully during the term but does not own it. At the end of the lease, you may have the option to purchase the asset at its agreed residual value, extend the lease, or return the asset to the lender.
What assets can be financed with a finance lease?
Finance leases can be used to fund a wide range of business assets including vehicles, trucks, forklifts, medical imaging equipment, IT hardware, solar panels, manufacturing machinery, and commercial kitchen equipment. Both new and used assets can be leased, subject to the lender's asset eligibility criteria and the asset's remaining useful life.
Can I claim GST on lease payments?
If your business is registered for GST and the asset is used for business purposes, you can generally claim the GST component of each lease rental payment progressively over the term. This is different from a chattel mortgage where the full GST on the purchase price can be claimed upfront on your BAS. Consult your accountant to confirm the correct treatment for your situation.
What happens at the end of a finance lease?
At the end of the lease term, you typically have three options: you can purchase the asset outright by paying the agreed residual (balloon) amount, extend or refinance the lease for a further period, or return the asset to the lender. The options available depend on the terms of your specific lease agreement. Many businesses choose to purchase the asset at the end if it still holds operational value.
How is a finance lease different from renting or hiring equipment?
A finance lease is a formal financial arrangement with a defined term, fixed payments, and a residual value. It is specifically designed to finance an asset over a structured period and is treated differently under accounting standards compared to a short-term rental or equipment hire. Finance leases generally run for 1 to 5 years and are structured to cover a significant portion of the asset's useful life.