FINANCE PRODUCTS
Replacement Facility
What is it?
A Replacement or Easy Upgrade facility allows lessees to upgrade their current equipment, being equipment subject to a current lease, without the requirement to provide the lease provider a full financial application or credit submission. Instead the lease provider takes a credit view based on the lessees previous history, their credit record, payment history and continuity or stability of business.
Equipment commonly leased with Replacement Facility
Pros
Flexibility
Tax and cash flow benefits
Affordability
Ease of approval – Up to $500,000
approved without Financials
approved without Financials
No upfront cash outlay
Cash flow friendly
Negotiable terms
Cons
Restricted to only several
equipment types
equipment types
What type of business uses Replacement Facility?
Businesses who have a current equipment lease and need a ‘like for like’ replacement.
Tax and accounting treatment for Replacement Facility
Subject to type of facility selected, see Commercial Hire Purchase, Finance Lease,
Chattel Mortgage.
