Equipment Finance Structure Comparison

Compares Chattel Mortgage, Finance Lease and Operating Lease/Rental side by side for business equipment — use this first to choose a structure, then use the Asset Finance and Lease vs Buy calculators for a detailed repayment schedule.

Equipment cost

$80,000 · ex GST

Equipment cost

Before GST — the purchase price of the equipment

Finance terms

8.5% p.a. · 48 months

Interest rate

Term

Balloon / residual

As a % of the equipment cost, paid at the end of the term

GST registration

GST-registered

GST-registered business

Affects when GST is claimed on each structure

Yes

GST-registered businesses can generally claim the GST back on a Chattel Mortgage upfront, but claim it progressively on Finance Lease and Operating Lease/Rental repayments instead.

Chattel mortgage$0/mo

Finance lease$0/mo

Operating lease / rental$0/mo

Structure comparison, feature by feature

Feature	Chattel Mortgage	Finance Lease	Operating Lease / Rental
Who owns the asset	Business, from day one	Financier (business uses it)	Financier
Balance sheet	Yes — asset & liability	Depends on lease terms	Typically off balance sheet
GST treatment	GST claimed upfront on purchase price (if registered)	GST typically claimed on each repayment	GST claimed on each rental payment
End of term	Own outright once balloon paid	Pay out residual to own, or re-lease	Return, upgrade, or negotiate purchase
Best suited to	Long-term ownership, depreciation benefit	Cash flow flexibility, newer equipment cycles	Equipment that dates quickly, avoiding ownership risk

This is a structural comparison, not a quote. Actual rates, GST treatment and balloon/residual limits vary by financier and equipment type. Tax treatment (deductibility, depreciation, GST timing) depends on the client's individual circumstances — always confirm with their accountant before recommending a structure.

Which Equipment Finance Structure Fits?

Compare Chattel Mortgage, Finance Lease, and Operating Lease side by side on cost, ownership, and tax treatment. Our brokers can provide live quotes across all three finance structures within hours.

⚖️ All structures compared 📄 Live quotes available 🧾 Tax advice included

For a full repayment schedule once a structure is chosen, use the Asset Finance / Chattel Mortgage calculator (balloon toggle, GST/depreciation notes) or the Lease vs Buy calculator (total cost comparison). This tool is for initial structure selection only and does not constitute credit assistance.