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Business Boat Finance

Boat Finance recognises that in this great country that thrives on a huge coastline, massive bays and harbours, rivers and lakes there are many businesses that operate on the water. That is why we have a number of business boat finance options and Marine Products including loans, hire purchase, Chattel Mortgage and Finance Leases.

Hire Purchase

Hire Purchase is still a rental agreement but differs from Finance Lease in that the goods become yours (or your businesses) once all the terms of the agreement have been completed. Ownership of the equipment remains with Boat Finance’s lenders until the final payment is made. For tax purposes however, you may be able to claim depreciation and interest paid against your business income. Talk to your accountant with regards to your eligibility for this.

There is also the option of including an upfront deposit, trade-in or set a balloon payment so you can reduce the rental commitment, or you may choose to structure the rentals to clear the debt in full over the term of the agreement.

Chattel Mortgage

This is a charge over goods to be financed, allowing businesses operating under a ‘cash accounting’ basis to claim the full input tax credit from GST expenses.

These loan structures can be tailored on a similar basis to Finance Lease and Hire Purchase facilities.

Finance Lease

Under a Finance Lease agreement you lease your nominated craft for an agreed term and rental amount. A residual value is agreed upon to reflect the boat’s value at the end of the term.

Although the boat is owned by the finance company, the lease rentals are tax deductable to you so long as the vehicle is used in connection to producing an assessable income.

At the end of the lease you can either make an offer to purchase the boat, trade-in for a replacement, return it, or extend the lease for another term.

Company Boats and Novated Lease

Novated Leases have become a popular alternative for businesses providing employees with vehicles. This concept also works for marine craft.

The Novated Lease is an agreement between the employee, employer and the finance company. A Finance Lease Agreement is made between the employee, employer and the lender, after which a Novation Agreement is entered between all three. This second agreement transfers the responsibility for the lease rental payments to the employer until such time as the employee leaves the business.

As vessels acquired this way are leased by the employee, there are benefits for both the business and the employee;

  • Potentially removes the boat/fleet from the business balance sheet.
  • Eliminates administration and maintenance costs involved in managing a boat/fleet.
  • Ability to negotiate payment of boat running costs with your employees.
  • Freedom for your employees to choose their boat while still maintaining the benefits of a compony craft.
  • No continuing responsibility for the boat should an employee leave.
  • boat affiliate suncorp