Operating lease finance for business

Last updated: 6 September 2022

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  • want to invest in lower value equipment with a short life span, that might become outdated quickly.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

Contract length

  • 1 to 5-year contract
  • 1 to 3-month agreement period

Not on the balance sheet, but you can claim tax on lease payments

Additional benefits

  • 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

  1. The financier purchases the equipment for you.
  2. You make monthly payments to the financier.
  3. 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.

For a list of simple tips to save energy in your business, visit the Victorian Energy Saver website.

Want to know more? Get in touch with:

Sustainability Victoria's finance team who can help you through this process.

Correct as at November 2019

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.