Under a rental 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 BOQ Equipment Finance Limited. BOQ Equipment Finance Limited 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 a rental agreement
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 rental agreements are entered into accordingly.
The residual value risk with respect to the equipment is assumed by the lessor. 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.