Operating lease is a contract where a financier buys renewable or energy efficiency equipment for a business to hire and use.
Suitable for businesses that:
- want to invest in lower value equipment with a short life span, that might become outdated quickly.
Project size: More than $7500
You do not own the equipment
The financier maintains the equipment
- 1–5-year contract
- 1–3-month agreement period
Not on the balance sheet, but you can claim tax on lease payments
- No upfront capital or security required
- You can upgrade the equipment once agreement is complete.
How to apply: Most major banks and financiers offer operating lease financing. Contact your bank to find out more.
How it works
- Find a financier who offers operating lease financing. Your bank is a good place to start.
- The financier purchases the equipment for you.
- You make monthly payments to the financier.
- At the end of the agreement, you can extend the lease or return the equipment
Your business’ creditworthiness may have an impact on finance availability and rates offered by the financier.
Get a discount for your energy saving project
The Victorian Government offers businesses a discount on energy saving products that are installed by accredited Victorian Energy Upgrade providers. Check which energy saving products are registered for a discount.
The Clean Energy Finance Corporation is currently facilitating discounted financing for energy efficiency and renewable energy equipment upgrades through some of the major banks and financiers.
We advise you to always seek advice from your accountant and legal representative when entering financial agreements.
Visit the Victorian Energy Saver for a list of simple tips to save energy in your business.