Facility Types
Novated Lease
A Novated lease (often referred to as salary sacrifice, car salary packaging and vehicle novation) is a vehicle lease agreement between an employer, employee and a finance company whereby the employee takes on a lease with a finance company and the employer agrees to take on the responsibility of making the lease payment to the finance company.
Chattel Mortgage
A Chattel Mortgage is a commercial lease for the purpose of finance for equipment such as a car, boat, truck, bus or other vehicle. However, Relion Finance also offers Chattel Mortgages to finance all other types of assets. Legal ownership of the vehicle or other asset is transferred to the purchaser at the time of purchase and upon final payment the title of the goods are transferred from the financier to you.
Commercial Hire Purchase / Hire Purchase / CHP
A Commercial Hire Purchase / Hire Purchase / CHP is a type commercial lease used to finance motor vehicles. The financier usually purchases the vehicle on behalf of the customer. The customer then makes regular monthly repayments for exchange of use of the vehicle. Upon the fins payment to the financier the title of the goods becomes that of the customer and no further repayments are required.
Consumer Car Loan
A consumer car loan is a personal loan whereby the security of the vehicle being financed is used as security.
What are the benefits of a Consumer Car Loan?
You can use this loan even if you intend to use the vehicle for 100% private use.
You have the choice of having a balloon if you want to reduce your monthly repayments
Have the flexibility of fortnightly or monthly repayments
Finance Lease
A Finance Lease is a structured commercial lease for the purchase of equipment. The financier purchases the equipment from the supplier and allows the customer to make use of the equipment in return for lease repayments. Title of the equipment becomes that of the customer once the small residual is paid. After that no further repayments are required.
Rental Agreement / Operating Lease
An Operating Lease allows the customer to make use of equipment without the burdens of owning the equipment. The lease is usually structured over less than the useful life of the equipment. Unlike a Chattel Mortgage, CHP or Finance Lease the title of the equipment does not transfer to the customer at the end of the finance term. If the customer wishes to own the equipment at the end of the term the financier may offer the customer a payout amount based on fair market value.
Sale and Leaseback
This process is usually done for fixed assets and where one sells an asset to a financier and then leases it back from that financier allowing you to continue to use that asset without owning it. This takes “lazy assets” off the balance sheet and injects usable working capital back into the business therefore allowing you to use that capital for alternate investments.
