With this type of finance, the financier owns the asset and the client returns it at the end of the term, usually from 12 months to 5 years. When leasing an asset, the fixed monthly payments depend on the useful economic life of the asset and the period of the lease.Operating Leases can often be used to fund a number of different assets. Payments towards this type of finance can sometimes be considered operating costs and will not appear as a liability on your balance sheet.
Chattel Mortgages are a popular finance solution where you own the asset from the outset and your loan agreement is secured by the asset. You can tailor your loan payments by choosing the term — typically up to five years. Other payment options can include a deposit and a larger final instalment. You can also structure payments to free up cash flow at the times of year you need it most.