FAQs

Ownership of the vehicle is transferred to the buying operator when all monthly payments and the residual are finalised.

With an off-balance sheet facility, the monthly payments are treated as an operating expense and are deductible. The deduction for the residual is per ATO guidelines.

With an off-balance sheet credit facility, GST is charged on the scheduled payments. Operators registered for GST can claim the amount on the relevant BAS return.

Rates on this credit facility are highly competitive and typically slightly higher than Chattel Mortgage and CHP and lower than Rent-to-Own.

Off-balance sheet means that the heavy vehicle is not posted to the accounts/balance sheet of the borrowing enterprise as the ownership is held by the lender. When all payments are finalised, ownership transfers to the borrowing enterprise and as such to their balance sheet.

All types of heavy vehicles may be funded with the full portfolio of commercial lending facilities. The best option should be selected by the operator based on suitability to their accounting method, tax strategy and approach to their balance sheet.

Yes. Buyers can use an online resource, a credit calculator, to compare estimates on all types of credit products. Calculators are readily available on broker and lender websites.

To be eligible for all types of commercial credit, enterprises must hold an ABN. A range of financials will be requested. These include bank statements, tax returns, accounts, BAS and other documentation to show the position of the enterprise. Being GST registered is preferred but not compulsory.

Credit calculators do not include charges by lenders and do not have the functionality to discern between the credit profiles of users. They produce estimates based on raw values only. Any offer that is made by a lender can be different from the calculator result.

The same credit products can be selected for both used and new heavy vehicles. Interest rates, terms and credit conditions can vary for older vehicles as their age and condition is taken into consideration when lenders prepare offers.

The residual is a percentage of the loan amount that is due for finalising after the monthly commitments are finalised.

The term approved will subject to individual decisions by lenders. Terms of around 7 years are typical.