Leasing is one of our most popular forms of asset acquisition financing and can be used for the purchase of a wide range of business assets. For marine operators wondering, if you can lease a boat? The answer is yes, if the vessel is for use in the business, under ATO business asset rulings.
Boat Leasing can provide an extremely flexible and workable option for many operators across the marine industry. Utilising the expertise of our brokers and our access to 80+ lenders, leasing a boat can be an affordable way to acquire the vessels needed for the business. We are specialists in marine financing and work to achieve the lowest rates and individual leasing solutions to suit specific customer objectives.
To discuss your specific objectives for boat leasing with one our expert brokers, contact us by phone or online.
Leasing a boat is not hiring a vessel. It is an asset acquisition credit facility available to businesses to facilitate the purchase of assets for their operation. In this case, a vessel for use in the business. The format of this loan type is the key to the name. The lender purchases the boat and leases it back to the borrowing business. The business repays the loan in equal, monthly lease payments over the agreed term. A residual is included for finalising at the end of the term.
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The ownership of the vessel remains with the lender, not the borrower, until all payments, including the residual are finalised. When all monies owed are paid, the business owns the vessel. This differs from buying a boat outright and Chattel Mortgage financing where ownership is transferred to the borrower on settlement.
While the lender owns the vessel in title with a lease, the borrowing business is responsible for all operational and maintenance costs of the vessel. This includes registration, insurance, service, repairs and mooring fees.
As the lender and not the borrower has ownership of the vessel during the lease term, the borrower is not required to post the asset/liability into their books or balance sheet. For this reason, Leasing is referred to as ‘off-balance sheet’ funding and ‘improving the appearance of the balance sheet’. This can suit businesses that don’t want an asset/liability of that size on their balance sheet.
At the end of the term, borrowers have a number of options when the residual payment is due, including handing the asset back to the lender, paying out the residual, selling the vessel to clear the residual, or refinancing. This is seen as an extremely flexible option for operators that need to regularly upgrade and replace vessels.
Boat Lease can suit many types and sizes of business operations and many different types of vessels and watercraft. With all decisions on whether or not a credit facility is suited to a particular business, we recommend the operator speak with their accountant.
Operators can also speak with one of our brokers to discuss Leasing and our other business financing products.
Use our handy boat lease calculator to work out estimates on any of the watercraft you are considering. The device can be used for any boats, any price and loan amount, to quickly obtain estimated monthly repayments. As rates and other features of boat leasing are individually offered after the application is assessed, contact us for a quote specific to your application.
Our guides offer quick comparisons and simple explainers to help you rise above the financing process with confidence.
A key feature of boat leasing is the suitability for businesses that implement the accruals method of accounting in preparing their annual accounts. This credit facility can present a flexible option for many operators with the vessel used as the security and many are not required to provide additional collateral.
The financing is structured with a residual element. This is a percentage of the initial loan which is due to be finalised at the end of the term. Residuals are established in line with ATO rulings. Both new and second-hand boats can be financed with leasing.
GST is applied to the monthly payments and can be claimed by operators registered for GST on the appropriate BAS return. The entire total of the monthly payments are deemed a business expense and fully tax deductible.
Leasing offers attractive interest rates and with our access to a vast lender market, we secure the most competitive rates to suit the customer. The rate is fixed for the full fixed leasing term. This delivers a fixed monthly payment schedule which our brokers structure to best suit individual cash flow requirements and objectives.
Operators wanting to know how much does it cost to lease a boat, head to our Boat Lease Calculator. To obtain estimates on boat leasing repayments for your purchase, use our Boat Lease Calculator, or request a quote.
Boat Leasing can offer flexibility and a workable way for many operators to obtain the vessels they need for their business. But the affordability and suitability for a particular business can still come down to the cost of the lease.
Interest rates, lease terms and conditions, and the approach to arranging financing varies across the many lenders offering business asset finance. We take a very personal approach. Honing-in on the individual requirements of each customer to ensure the boat lease specifically suits and works with the operation.
That starts with securing the best interest rates from across our vast lender base of over 80+ lenders. Our expert brokers negotiate the best rates, terms and the most workable end-of-lease options. These can include paying out the residual in full or not paying the residual and allowing the lender to retain ownership. We can arrange refinancing of residuals to provide a flexible option for operators to take ownership of the vessel.
As specialists in marine financing, we have access to lenders that approve leases for new, start-up and small operators with Low Doc Boat Leasing plans. To discuss your individual requirements for boat lease, speak with one of our expert brokers.
In addressing the query of ‘can you lease a boat?, operators will need to meet the eligibility criteria. Our brokers will be assisting with this aspect, selecting the lender that best meets the profile of each operator and handling the application process.
All operators will need an ABN and ID and the vessel needs to meet business asset requirements. Documentation on the financials of the business is required, including:- annual accounts, income tax returns, BAS returns, profit and loss statements, asset and liability schedules, bank statements, and details of turnover.
Credit history is checked, and profiles are key to achieving the best rates and most workable terms. Small businesses may have personal credit profiles reviewed as part of the application assessment and be requested to provide personal financials.
The boat itself will also be assessed for suitability by lenders, especially the age and condition of older vessels.
Our personal attention and service ensures a straightforward, smooth boat lease application process. To check your eligibility for leasing a boat, speak with a Jade Finance broker.
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THE INTEREST RATE IS CALCULATED ON A SECURED LOAN PREDOMINATELY FOR BUSINESS USE, EFFECTIVE 16/09/2024 AND SUBJECT TO CHANGE. WARNING: THE INTEREST RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT INTEREST RATE.
All types of vessels and watercraft, new and used, used for an in a business operator may be approved for leasing, subject to individual lender criteria.
Leasing is a commercial financing product available through a range of business finance lenders.
When all payments of a boat lease, including the residual, are paid, the lender transfers ownership to the business.
While the lender holds ownership title over the term of a boat lease, the borrower is responsible for all costs associated with operating and maintaining the vessel. This includes registration and insurance.
Where a boat is financed with leasing, the borrower registers the vessel under their business name.
A residual is a portion of the lease amount which is due to paid at the end of the term.
Boat lease payments are treated as an expense by the ATO and are a tax deduction.
Calculators provide figures based only on the data entered. They do not allow for different credit profiles and applications which may result in a different interest rate offer and lender fees and charges are not allowed for. Offers can differ from calculator-derived estimates.
Business financing, including lease, require financials and credentials including ABN, tax returns, annual accounts, bank statements, profit and loss statements, and similar.
New operators may not have all the financial documents required for approval for business loans. Where they do not, they can use a business finance broker to connect with lenders that offer No Doc Boat Leasing.
Jade Finance simple fast approval application process quickly delivers back all the information you need to help you make the right choices on your finance needs. We pride ourselves on delivering better loan interest rates. Simply you will find our loan packages hard to beat.
