Finance Options

Specific Security Agreement / Chattel Mortgage

A Chattel Mortgage (also commonly known as a Specific Security Agreement, or an Equipment Loan) is a loan to a business primarily secured by the asset being purchased by the business with the loan funds. The business, being the owner of the equipment on payment, claims depreciation on the equipment and the interest paid is generally tax deductible.

Finance Leasing

Finance leasing can be a cost-effective way for a company to acquire assets. Financing costs are calculated on the price of the equipment for an agreed time frame in return for a series of payments. Most contracts are very flexible and will allow you to choose to pay monthly, quarterly, bi-annually or yearly. If you a have a business which experiences seasonal income, you can elect to make your repayments on a seasonal or irregular basis.

Hire Purchase

Hire purchase agreements are purchases by instalment facilities, providing the customer with legal title to the equipment after the completion of all finance repayments. For tax purposes, the customer is regarded as the owner from commencement, and as long as the equipment is used to generate income for the business, the depreciation and interest charges which relate to the hire purchase are tax deductible. Goods are invoiced to the Financier and the customer usually pays fixed instalments over an agreed time frame.

Sale and Lease / Hireback

Sale and Lease/Hire Back is a method of financing where assets are sold to the lender, which then concurrently enters into a lease agreement with the customer. The customer remains in possession of the asset for the specified term of the lease and pays a monthly rental. This enables the customer to use the sale proceeds more effectively.

Progressive Payment

PMG Finance has access to financiers who can arrange finance when equipment is being constructed, and progress payments are required by the manufacturer at various stages during construction.

Also known as Escrow Facilities, repayments during this time are interest only on the outstanding balance, charged monthly in arrears. Once construction is complete, the facility is converted to either a lease or Specific Security Agreement (formerly Chattel Mortgage) depending on the borrower's requirements.

Insurance Premium Funding

Insurance Premium Funding (or finance) is a fixed rate loan made to a business to finance the cost of the premiums on certain types of business insurance.

Novated Leasing

A novated lease may be the ideal arrangement for an individual who has the option of receiving a car as part of their salary package. The employer meets the repayments on the lease, but the employee is responsible for the vehicle's maintenance and running costs. Employees assume sole responsibility for the lease should they change jobs for any reason.

Rental

Rental is a popular option among purchasers of computer or security equipment, due to its flexibility and financial benefits. Rental is used widely for equipment with a high obsolescence factor. At the end of the rental period, options can include an offer to purchase the equipment, upgrade to the latest technology, hand the equipment back or continue to rent the equipment at a reduced rate.

Debtor Funding

Debtor funding is an alternative to a traditional overdraft, which does not require bricks and mortar security. It is an easy way of providing cash for a fast-growing business, as it releases funds tied up in trade debtors, providing a flexible source of working capital for small to medium enterprises.

Operating Lease

An operating lease is generally utilised when a customer requires the use of equipment in order to fulfil a fixed term work contract. The item, often specialised in nature, is leased for use for a set period in return for rental payments. At the end of the term, the item is returned to the Lessor with no further financial obligation.