Rental agreement operating lease
Under a rental operating lease agreement the lessor retains substantially all the risks and benefits incidental to ownership of the leased property. Generally the term of the lease is for a period less than the effective life of the property.
Features and benefits
- no ownership rights rest with the lessee. At the end of the contract the goods are returned to the Bank of Queensland Equipment Finance Limited. The Bank of Queensland may be prepared to extend the contract for a further period.
- generally lease rental payments are fully tax deductible. However you should seek independent taxation advice, as this may not be applicable to your situation.
- equipment can be replaced at the end of the lease term with the latest technology without the cost of disposal of existing equipment
- it is recommended that you consult your accountant when considering the Balance Sheet implications of an operating lease or rental agreement
More information
Typically, these types of finance do not incorporate a residual value liability for the lessee. Rather, the lessor makes its own evaluation of the likely market value of the property at the end of the lease term and operating rentals are struck accordingly.
The residual value risk with respect to the equipment is assumed by the lessor. Operating Leases and Rental Agreements are not able to be cancelled.
Fees and charges
There are Government charges and costs, which vary from state to state, in addition to our fees and charges.
To apply for an equipment loan visit one of our convenient locations or call one of our friendly customer service consultants on 1300 55 72 72.
Important information
Information current as at July 4, 2008.
Equipment and vehicle finance products are offered by Bank of Queensland or its wholly owned subsidiary, BOQ Equipment Finance Limited ABN 78 008 492 582.
Fees and charges are payable. Normal credit assessment criteria apply. Full terms and conditions are available from BOQ Equipment Finance Limited.