What is ‘Custom Equipment Lease’?

‘Custom Equipment Lease’ is a hire-purchase agreement that lets you to get the custom hospitality equipment you need today and pay for it in manageable, weekly amounts spread over two years.  

By saving you from having to make a large, upfront payment, Custom Equipment Lease helps protect your cash flow. 

When the lease ends, you own the equipment.

How much finance can I get?

Custom Equipment Lease is for hospitality owners and operators who are after at least $1,000 of finance.

Do I have to provide a personal guarantee / director’s guarantee?

Yes — a director’s guarantee is required for all Custom Equipment Lease agreements (irrespective of the value of the leased equipment).  

For more information, please contact us.

When do the lease payments begin?

Your equipment leasing payments will begin as soon as the equipment is delivered to your business address.

How can I pay my weekly lease payments?

You can pay your weekly lease payments via a direct debit from your bank account or credit card. 

What happens if I miss a lease payment or make a late one?

If, for any reason, you miss a lease payment, your account will fall into arrears. 

If that occurs, we’ll try to reprocess the direct debit or, if we’re unsuccessful, call you to ask how we can assist you in getting your payments back on track. 

You may incur a dishonour fee and/or a late-payment fee (for more details, please see the terms and conditions of your agreement). 

Can I claim the lease payments as a tax deduction?

Yes —  but only the interest component of the payments (minus of any Goods and Services Tax).* 

Can I claim Goods and Services Tax (GST) credits?

Yes. A hire purchase is treated the same way as a standalone sale and is thus subject to GST.  

No matter how you account for GST (cash basis or non-cash basis), on your next Business Activity Statement you can claim the full value of the GST payments to be made across the life of the Custom Equipment Lease agreement, giving your business an immediate cash flow boost.

Can I claim depreciation on the leased equipment?

Yes — you can claim a tax deduction for the decline in the value of your leased equipment.* 

While depreciation deductions are generally available only to the legal owner of the asset, hire-purchase arrangements like Custom Equipment Lease are generally treated as a notional sale of goods.  

In other words, the lessee (you) rather than the legal owner (SilverChef) is entitled to claim the depreciation on the leased equipment over its effective life thereby reducing your tax liability. 

(If you’re eligible to claim an immediate or accelerated deduction on the leased equipment using a tax-depreciation incentive, it can further add to your cash flow.)* 

Who owns the leased equipment?

Though the equipment is in your hands, we own it until you make your final lease payment, at which point you become the owner. 

Our ownership of the equipment will be recorded on the Personal Property Security Register (PPSR). 

While you’re leasing the equipment, you can use it as you please, if it’s only for business (not personal/domestic) purposes; and you don’t sell, give, assign, lend or release the equipment to a third party to use without our prior consent. 

Also, if you move the equipment from the original address you gave us, you must let us know right away. 

When will I own the equipment?

Custom Equipment Lease is a two-year hire-purchase agreement.  

You make manageable, weekly payments and, at the end of the finance term, you own the equipment.

When I take ownership of the equipment, who’s responsible for updating the Personal Property Security Register (PPSR)?

After you’ve made your final lease payment, we’ll remove our interest from the PPSR upon your request. 

The PPSR is the official government register of security interests in personal property — debts or other obligations that are secured by personal property.  

When someone registers a security interest on the PPSR, they are letting the world know that they claim to have a security interest over personal property, including company assets like rented or leased hospitality equipment.  

A security interest is most commonly created when a secured party (such as a lender) takes an interest in personal property of a grantor (such as a borrower), as security for a loan or other obligation.  

The security interest means the secured party can take the personal property (known as collateral) if the secured obligation is not met.  

Security interests can arise only when there is agreement between the grantor and the secured party. 

Can I upgrade the equipment?

No — Custom Equipment Lease does not give you the option to upgrade the equipment. 

Can I return the equipment?

No — Custom Equipment Lease does not give you the option to return the equipment. 

Can I pay out the lease agreement early?

Yes — Custom Equipment Lease has an early-payout option. 

However, there is no financial advantage to paying out the agreement early as the cost would be the same as you paying off the equipment in smaller, more manageable amounts over the entire term. 

* This advice is general in nature and does not consider your personal circumstances. Professional advice should be sought that is tailored to your personal situation.