A typical self-employed client will most likely be suited to a Chattel Mortgage for their vehicle & equipment finance needs, mainly because it allows them to own the goods while the lender secures them. A typical large company that turns over more than $1m per year and accounts on an accrual basis will most likely be suited to a Commercial Hire Purchase because it is flexible and interest/depreciation can be claimed upfront. A typical PAYG client who requires a vehicle for business use will likely use a Commercial Hire Purchase because it caters for commercial clients operating a business. A typical salaried employee who wishes to obtain a vehicle via a salary sacrifice will use a Novated Lease because

1. An Introduction to Leasing
Enhancing your business

2. Typical client profile for Leasing
Leasing caters only for commercial clients:
• Registered company
• Client operating a business with an ABN
• PAYG client operating a motor vehicle predominantly for
work-related purposes (51%+)
• PAYG client who could benefit from a salary-sacrificed
Novated Lease for their motor vehicle

3. What finance can I offer?
• Motor vehicle finance
• Passenger cars for business use
• Light commercial vehicles – vans and small trucks
• Heavy trucks and trailers
• Plant and equipment finance
• Income-generating assets
• Manufacturing, construction, medical, transport…
• Computers and electronic equipment
• Where is Macquarie Leasing cautious?
• Retail / restaurant fit-outs (furniture and display) – unlikely to be
approved
• Sale and Leasebacks – criteria must be met
• Equipment over 10 years old

4. What products can I offer?
• Commercial Hire Purchase
• Chattel Mortgage
• Finance Lease
• Novated Lease
• Pre-Approved Limits
Loan Wize Fact Sheets explains
when each product should be employed

5. What information will I need?
• To assess an applicant for credit-worthiness we need:
• Last two years financial statements
• Assets and Liabilities statements of all individuals / directors
• Schedule of existing financial commitments
• Background on client – describe business
• Purpose of loan – why is the vehicle / asset required?
• The larger the loan, the more information required

6. Vehicles and Assets
• Passenger cars
• Light commercial vehicles
• Heavy trucks and trailers
• Forklifts
• Mining vehicles and equipment
• Construction vehicles and equipment
• Manufacturing plant and equipment
• Printing presses and associated plant
• Electronic and computer equipment
• Office fit-outs for professionals
• If you’re not sure – call us
What information will I need?Vehicle & Assets

7. • Commercial Hire Purchase
• Chattel Mortgage
• Finance Lease
• Novated Lease
Products Available

8. Commercial Hire Purchase
• Flexible product best suited to business clients on an
accrual basis for GST
• Lender “owns” the goods until final payment is made
• Deposits or trade-in equity can be applied
• Interest and depreciation claimed by the client
• GST claimed up-front if client on accruals basis
• GST claimed across the term if client on cash basis
• Balloon payments can be included during the term and at
maturity if desired – no tax guidelines applicable
• Interest rate is fixed
This information is not to be treated as tax advice in any form. Clients should always
obtain their own advice from a qualified person prior to entering into any finance or
leasing agreement

9. Chattel Mortgage
• Flexible product best suited to business clients on an cash
basis for GST
• Client owns the goods and allows the lender to secure them
by way of a chattel mortgage
• Deposits or trade-in equity can be applied
• Interest and depreciation claimed by the client
• GST claimed up-front by business clients
• Balloon payments can be included during the term and at
maturity if desired – no tax guidelines applicable
• Interest rate is fixed
This information is not to be treated as tax advice in any form. Clients should always obtain their
own advice from a qualified person prior to entering into any finance or leasing agreement

10. Finance Lease
• Best suited to business clients who prefer to minimise
capital expenditure
• The lender owns the asset as “Lessor”
• Client rents the asset via a monthly payment
• No deposits or trade-in equity may be applied
• Rental payments are usually claimed by the client
• GST on payments claimed across the term
• Residual values set in accordance to ATO guidelines
• Client indemnifies the lender for residual value
• Rental payment and term are fixed
This information is not to be treated as tax advice in any form. Clients should always obtain their
own advice from a qualified person prior to entering into any finance or leasing agreement

11. Novated Lease
• Best suited to salaried clients wishing to “salary sacrifice” the costs
of owning a car
• The lender enters into a lease agreement with the client
• Client then enters into a Deed of Novation with their employer
• Employer pays the rental payments to the lender out of the client’s
pre-tax salary and claims the deduction
• Credit decision is based on credit-worthiness of the client
• If client leaves the employer, the lease payment responsibility
reverts to the client
• Residual values set in accordance to ATO guidelines
• Client indemnifies the lender for residual value
• Rental payment and term are fixed
This information is not to be treated as tax advice in any form. Clients should always obtain their own advice from a
qualified person prior to entering into any finance or leasing agreement

12. Points to Note
• For business clients who have an ongoing need for the
purchase of vehicles and/or assets you can arrange a
Facility Limit via lemders. This ensures an easy process
each time a new asset is acquired.
• Sales and Lease-backs and Private Sales may be
accommodated for good clients.
• Increased rates and fees are charged in accordance with
the additional work involved.

13. Some real life examples…
Self-employed builder is referred to you by a happy
residential mortgage client, who has noted via your
marketing material that you also provide vehicle and
equipment finance;
He is looking for finance to purchase a 2-year old utility
vehicle and also a large air-compressor valued at $30,000;
The scenario may play out as follows:
This information is not to be treated as tax advice in any form. Clients should always
obtain their own advice from a qualified person prior to entering into any finance or
leasing agreement

14. Another example…
Quantity Surveyor who is a financial planning client of a
valued referral source comes to you for vehicle finance on a
new 4WD;
Client has 4 years experience but only 6 months in current
employment;
The scenario may play out as follows:
This information is not to be treated as tax advice in any form. Clients should always
obtain their own advice from a qualified person prior to entering into any finance or
leasing agreement

15. IN SUMMARY
IN MOST CASES:
 A typical self-employed client will most likely be suited
to a Chattel Mortgage for their vehicle & equipment
finance needs, mainly because…
 A typical large company that turns over more than $1m per year
and accounts on an accrual basis will most likely be suited to a
Commercial Hire Purchase because…
 A typical PAYG client who requires a vehicle for business use will
likely use a Commercial Hire Purchase because…
 A typical salaried employee who wishes to obtain a vehicle via a
salary sacrifice will use a Novated Lease because…

16. IN SUMMARY
IN MOST CASES:
 A typical self-employed client will most likely be suited to a Chattel
Mortgage for their vehicle & equipment finance needs, mainly
because…
 A typical large company that turns over more than $1m
per year and accounts on an accrual basis will most
likely be suited to a Commercial Hire Purchase
because…
 A typical PAYG client who requires a vehicle for business use will
likely use a Commercial Hire Purchase because…
 A typical salaried employee who wishes to obtain a vehicle via a
salary sacrifice will use a Novated Lease because…

17. IN SUMMARY
IN MOST CASES:
 A typical self-employed client will most likely be suited to a Chattel
Mortgage for their vehicle & equipment finance needs, mainly
because…
 A typical large company that turns over more than $1m per year
and accounts on an accrual basis will most likely be suited to a
Commercial Hire Purchase because…
 A typical PAYG client who requires a vehicle for
business use will likely use a Commercial Hire Purchase
because…
 A typical salaried employee who wishes to obtain a vehicle via a
salary sacrifice will use a Novated Lease because…

18. IN SUMMARY
IN MOST CASES:
 A typical self-employed client will most likely be suited to a Chattel
Mortgage for their vehicle & equipment finance needs, mainly
because…
 A typical large company that turns over more than $1m per year
and accounts on an accrual basis will most likely be suited to a
Commercial Hire Purchase because…
 A typical PAYG client who requires a vehicle for business use will
likely use a Commercial Hire Purchase because…
A typical salaried employee who wishes to obtain a
vehicle via a salary sacrifice will use a Novated Lease
because…

19. Thank you
Questions?