Loan options

Secured Loan

A secured loan (chattel mortgage) can be beneficial to small and medium sized businesses who account for their GST on a cash basis.

Full use, at a known cost
Like other equipment finance facilities, you have full use of the equipment during the term. You’ll have the security of a predictable monthly payment, which can be lowered by adjusting either the initial deposit or the end of term ‘balloon’. Unlike other facilities, however, you take ownership of the equipment from the outset. Classic Funding Group takes security over the equipment (similar to arranging a mortgage on a home).

Tax effective asset management
One of the main benefits of a secured loan (chattel mortgage) is the ability for those who account for their GST on a cash basis to claim back the GST on the cost price on their next business activity statement. While the equipment does appear on your balance sheet, any interest paid plus depreciation of the equipment may be tax deductible with business use. Payments are calculated on the GST inclusive price, so secured loan payments attract no GST.*

End of term options
Once all of the payments for the secured loan (chattel mortgage) have been paid, our security interest in the equipment is released. You do not usually have the option of handing the equipment back as you do with a lease or rental.

At Classic Funding Group, our expert staff will work with you to build a solution to help you get the equipment you need to grow your business. We tailor each equipment finance solution specifically to the needs and capacities of each client.  

 *We do not provide financial advice. You should obtain your own financial advice on the tax and accounting treatment of any finance solution you choose.

Rental Operating Lease

With a rental facility (also known as an operating lease) from Classic Funding Group, you’ll have complete control and the flexibility to access the business equipment you need.

Update and upgrade
Classic Funding Group’s rental facility provides ultimate flexibility. You can update, upgrade or add on new equipment at any time with a simple contract variation.

Predictable cash flow, preserved capital
With rental, you can conserve your capital and existing lines of credit for other core business requirements. Rental provides the security of a predictable monthly payment.

Possible tax advantage
Equipment rental payments may be tax deductible when the equipment is used for business purposes.*

End of term options without commitment
At the end of the rental term, you have a number of choices. You can offer to buy the equipment, continue renting it, upgrade to new equipment or simply return the equipment to us - it's entirely up to you. Most clients choose to constantly upgrade their equipment to stay current and competitive while maintaining a predictable cost base.

A total, tailored solution
By combining your business equipment needs into a single rental facility, you’ll save time and money by only having to make a single monthly payment.

At Classic Funding Group, our expert staff will work with you to build a solution to help you get the equipment you need to grow your business. We tailor each equipment finance solution specifically to the needs and capacities of each client. 

*We do not provide financial advice. You should obtain your own financial advice on the tax and accounting treatment of any finance solution you choose.

Comparing rental and purchase

Need new equipment but not sure whether to utilise a rental facility, purchase with other finance products or your own capital?

When it comes to getting new equipment for your business, understanding your finance options doesn't need to be a daunting task. The first step is to understand what equipment is critical to your business, the effective life of that equipment and your ongoing business plans.

 Rental Agreement
(Operating Lease)
Secured Loan Agreement
(Chattel Mortgage)
Purpose

For rapidly depreciating equipment with up to 5 years life span (computing, machinery,IT,AV, security, gaming machines etc)

For businesses where equipment ownership is critical (equipment with long performance life and low depreciation)
Ownership Ownership not main motivation. Equipment returned, rented or purchased for agreed amount at end of term Ownership granted at the beginning of the term. Contract is finalised upon receipt of all payments and final balloon
Flexibility Highly flexible - easy upgrades and add-ons at any time with a simple contract variation. Often possible without any change to monthly payment Less flexible - can only upgrade by taking out a new contract and paying out the old one
Tax treatment Monthly payments may be 100% tax deductible with business use Interest component of loan and depreciation of equipment may be tax deductible
Residual risk No residual risk obligation A final balloon payment is an option
Accounting treatment Rental payments may be treated as an operating expense and will not appear on the Balance Sheet as a financial liability Secured loan agreement commitments may be noted on the Balance Sheet as capital expenditure
GST treatment Rental payments include GST (Input Tax Credit may be claimable in your BAS)* GST inclusive cost of the equipment is financed. Loan payments do not attract GST*
End of term options Various, including continue renting, offer to buy equipment, return equipment at no additional cost or upgrade and rent new equipment None - Business takes ownership of equipment
Responsibility for equipment disposal Finance provider Business
Bearing the risk of obsolescence Finance provider Business

* We do not provide financial advice.  You should obtain your own financial advice on the tax and accounting treatment of any finance solution you choose. Approval is subject to standard credit requirements.  

No Financials

Ideal for smaller businesses or where you do not want to take a charge against a property. It's fast and paper-free, enabling you to get on with purchasing the equipment you need.

No financials required up to $100,000 or $125,000 for existing clients* (Up to $1,500,000 with financials)

No deposit required

No real estate required

2 - 5 year terms (7 year terms available for clean energy assets)

Quick and easy process with document e-signing 

Seasonal payments available

Managed Print

Classic Funding Group provides print solutions for vendors 

Choose the managed print solution that best suits your customer’s requirements

  1. Rental Plus: fixed term agreement with a simple upgrade and variation process plus a fixed service cost that is collected by Classic Funding Group and paid back to you.
  2. Managed funded service agreement based on minimum cost per copy volumes, upgrades and variations. Meter readings are required and service costs are billed by Classic Funding Group and paid back to you. 'Overs' are applied to the contract to reduce the contract term
  3. Fusion Plus: fixed term agreement with the features of rental with the benefits of a cost per copy contract, upgrades and variations. The service component and ‘overs’ are billed by Classic Funding Group on a cost per copy basis.

Got a question

Can you finance old and used equipment?

Classic will consider any age of asset for finance. An independent valuer will assess the amount you can borrow against older, used assets.

What types of specialist equipment do you finance?

We can help with most assets and industry sectors. Unlike some lenders, we are happy to consider Aviation, mining and bespoke machinery. 

Can Classic Funding Group help me with repay ATO debt?

Yes we can help with the finance. We are not licensed to provide you with Tax advice though.

Do you do a 7 year term?

Our maximum term for Equipment finance that is not related to Clean Energy is 5 years.

What is the minimum & maximum deal size?

There are some differences depending on whether you are part of a vendor, broker or buying direct.  Our lowest deal size is $2,000 or $40,000 (brokers) up to a maximum of $1,500,000.

What do you need from me to apply?

We need a completed application which you can either download or complete and submit online

What are the minimum information requirements?

You will need to complete our application form, agree to our privacy terms, provide your financial accounts, and your Commitment Schedule. Missing information delays the credit decision.

Are there any restrictions?

All businesses need to have a minimum 2 years trading. Unlike some other lenders we will consider customers with an imperfect credit history

How long does approval take?

Application forms are approved on the same day 

Once assessed how long does the settlement take?

Settlement is the same day.

What are the assessment criteria?

We assess each deal on its individual merits based on debt servicing and balance sheet strength. This full documentation approach enables us to establish which tier of interest and amount of finance that we will offer.

How long until I can get the equipment or vehicle?

Your funding will be available for your equipment or vehicle the next working day after your application is approved. We use edocs which require your email address and mobile phone number to enable this speedy processing.