In today's changing business environment, attempting to keep pace with the rapid development of technology places enormous pressure on organisations to stay within budget, whilst retaining their competitive edge. There is a range of business and equipment finance available to help you free up your capital and enable you to invest in more profitable areas.

Below are so some equipment finance options you may wish to consider.

Hire Purchase – this option allows you to use your equipment while you pay it off. You will own the equipment after the final payment.

• How It Works - The hire purchase agreement is a contract where the financier (the "owner") gives you (the "hirer") possession and use of an item of equipment in return for regular payments. When the final payment is made, the "hirer" owns the goods.

Finance Lease – The financier purchases the equipment and leases it back to you.

• How it works - The financier purchases the equipment or vehicle you require and then leases the goods to you. You then enjoy the use of the vehicle or equipment for an agreed time in return for a series of rental repayments. You can finance goods you’ve already purchased in the last six months.

Chattel Mortgage – This is an effective way of financing goods whereby you own the goods and they are used by the lender as security for the loan.

• How it works - The financier secures the loan by registering a charge over the goods, in the same way as a residential mortgage secures a home loan, and you take ownership of the goods upon delivery

Novated lease - For those who have the option of receiving a car as part of their salary package.

• How It Works - The employee chooses a car and leases it from a financier. The employee then novates the lease to their employer, who assumes all the employee’s rights and obligations under the lease, including responsibility of meeting the lease rentals. The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times. If the employee leaves the company, the vehicle remains with the employee. In this situation generally the employee takes over the payments or gets another employer to make the payments. This means, the original employer is not left with an unwanted car and the employee keeps the vehicle.

Operating Lease - An Operating Lease is simply a rental agreement.

• How It Works - An operating lease gives you full use of an asset while allowing you to avoid many of the risks typically associated with ownership. At the end of your operating lease agreement you may simply return the vehicle. Some of the benefits of an operating lease are that working capital is maintained, lease rentals will be fully tax deductible if the vehicle is used to generate taxable income, the finance cost is known for a fixed period of time and there is not resale value risk.

To find out more, contact Danny Adams or Scott Smith at Cairns Finance today.