Choosing the best way to finance your fleet can involve a number of vital decisions. ORIX can help you determine the most effective finance option for your entire fleet or individual vehicles.
Operating Lease
An operating lease removes the asset, liability and residual value risk from your balance sheet as well as releasing working capital into your core business. And provided the leased vehicle or equipment is used in Australia to earn assessable income, lease rentals will be an allowable tax deduction.
Finance Lease
Under a finance lease, lease payments are generally tax deductible and the asset and liability remain on your balance sheet.
The features of both lease options are outlined in the table below:
| Operating Lease | Finance Lease | |
|---|---|---|
| ORIX retains ownership of the vehicle |  |
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| You have exclusive use of the vehicle during the lease term | |
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| All vehicles types can be leased - passenger, light commercial, heavy commercial and materials handling | |
|
| Capital tied up in vehicles can be released back into the business | |
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| The asset and liability are not displayed on your balance sheet for improved financial reporting | |
|
| No significant up-front capital outlay is required | |
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| Lease rental payments are fixed throughout the term | |
|
| ORIX retains any residual value risk | |
|
| Any residual value risk is assumed by you | |
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| Lease rental payments may be fully tax deductible if the vehicle is used to generate an income | |
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