Capital lease finance

Capital lease is a contract where a financier buys energy efficiency equipment for a business who pays it back over time.



Stay in control of your finances

  • Get financing of more than $7500.
  • Low monthly repayments over a long period.
  • No upfront cost or security.
  • Simple 1–5-year contract with a 1–3-month agreement period.
  • Less paperwork and fast approval process.

Potential tax benefits

  • You may be able to claim tax on the depreciation and interest on your repayments.
  • On the balance sheet.

How it works

  1. Find a financier who offers capital lease financing. Most major banks offer it, so your bank is a good place to start.
  2. The financier will purchase the equipment for you.
  3. You make monthly repayments to the financier.
  4. At the end of the agreement, you have the option to buy the equipment.

You own the risk, but for an extra cost, the financier may take on the risk for you.
Most major financiers provide a discount on finance for energy efficiency and renewable energy equipment upgrades.

It’s advised to always seek advice from your accountant.  

Visit the Victorian Energy Saver for a list of simple tips to save energy in your business.  

Want to know more? Get in touch with:

Vivek Kotak

Sustainable Finance Lead

+61 3 8626 8781

vivek.kotak@sustainability.vic.gov.au

Correct as at January 2018.

Sustainability Victoria
Level 28, Urban Workshop,
50 Lonsdale Street, Melbourne VIC 3000
Phone (03) 8626 8700
sustainability.vic.gov.au
Published by Sustainability Victoria.
Sustainable Finance – Capital Lease
© Sustainability Victoria January 2018

Disclaimer: The information provided in this document is general advice only. It does not take into account your particular needs or objectives and does not constitute legal or accounting advice. Accordingly, any comments or statements made are not a recommendation that a particular course of action is suitable for you and you need to seek your own legal, tax and accounting advice in relation to your specific circumstances.

This information is true and correct as of January 2018