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
- Find a financier who offers capital lease financing. Most major banks offer it, so your bank is a good place to start.
- The financier will purchase the equipment for you.
- You make monthly repayments to the financier.
- 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.