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PAR Capital’s equipment funding options

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PAR Capital  offers a range of equipment financing solutions designed to suit the specific needs of the business.

PAR Capital’s equipment funding options include term rental/operating lease, chattel mortgage, commercial hire purchase, finance lease and low doc facilities.

Term Rental/Operating Lease

One of the most tax-effective ways for a business to start using new income earning equipment immediately for a minimal outlay, rental finance plans are capable of making whole of the facility rentals tax deductible. Ownership of the plant and equipment is held by the financier.

Chattel Mortgage

A popular way to finance the acquisition of business plant and equipment since the introduction of the GST, chattel mortgage allows ownership to be held by the borrower from day one with the lender taking a charge over the plant and equipment to protect its interests. Normally the interest component of the repayments and the depreciation allowable on the plant and equipment can be claimed as a tax deduction.

Commercial Hire Purchase

A funding option used by borrowers who prefer to amortise the debt over a nominated period, commercial hire purchase has the financier holding the ownership with the equipment hired to the customer. It is generally accepted that the interest component of the repayments and the depreciation on the plant and equipment can normally be claimed as tax deductions.

The contract can be structured to include a balloon payment at the end with ownership automatically transferring to the customer when the final repayment is completed.

Finance Lease

A finance lease is structured over a specific term with a residual value set in accordance with the depreciated value of the plant and equipment financed at the end of the lease term. Monthly rentals are normally tax deductible and generally ownership passes to the lessee on payment of the residual value.

Low Doc Facilities

This facility allows the funding of motor vehicles and some items of business plant and equipment up to $100,000 without the need to provide financial statements.

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