BDL Logo
 
Relion Finance | Barcode Datalink



 

Relion Finance offered by Barcode Datalink

Barcode Datalink have recently partnered with Relion Finance to provide our customers with a range of lease options for purchasing equipment worth more than $2000.00.

Relion Finance offers both "low doc" and "full doc" loans. Please seek your own financial advice on which option best suits your needs. Four options are available to you:

  1. Rental/Operating Lease  
  2. Finance Lease 
  3. Hire Purchase 
  4. Chattel Mortgage

 

Rental/Operating Lease

A Rental / Operating lease allows you to pay to use the equipment over a fixed period and you do not necessarily wish to own the equipment at the end of the term. This type of financing makes perfect sense when you need to acquire equipment that becomes obsolete due to changes in technology or simply wears out after a period of time.

Payment under a rental agreement are generally less expensive than other forms of finance. Like other leases, the residual value has the effect of reducing the payments throughout the term however, with a rental you have no liability for the residual value so you can generally enjoy a much lower interest rate than you would with other finance products.

At the end of the rental agreement you can either:

  • Return the old equipment and upgrade to new
  • Return the old equipment and walk away
  • Continue to rent on a month to month or for a fixed term
  • Offer to purchase the equipment for fair market value (FMV)

Features

Our rental agreement offers enormous flexibility as you can change or refresh equipment through the term of the agreement without necessarily increasing the payments:

  • Payments are fully tax deductible if used for business
  • May be considered off balance sheet so payments are treated as an expense and the liability is only shown in the balance sheet notes
  • Make your ownership decision at the end of the term rather than at the beginning
  • Flexibility, so you can add and remove equipment, change the term and your payments
  • Reduce administration, with no need to keep asset and depreciation schedules

Benefits

There are many tax, cost administration and technological benefits for your business:

  • Payments are fully tax deductible
  • Lower interest rates as we invest in the residual value
  • 100% financing including software, installation and maintenance
  • Removes ownership problems such as disposal
  • Allows you to keep pace with technology at no extra cost
  • Reduced Total Cost of Ownership
  • Reduced administration, no need to keep asset and depreciation schedules

 

Finance Lease

Finance leases are generally used for assets that have a life beyond the term of the lease agreement.
Our customers normally choose a Finance lease where they are looking for tax deductibility combined with a desire to purchase the asset at the end of the agreement for the residual value.
Residual values can also be refinanced for a further period, if desired, so the lump sum payment does not need to be met from your cash flow.

Features

Finance leases offer more than guaranteed ownership:

  • Ownership is guaranteed after payment of the agreed residual value at the end of the term
  • Is ‘on balance sheet’ with both the asset and the liability detailed on the balance sheet
  • Payments can be structured
  • Residual values are guided by the ATO schedules
  • Amount financed is net of GST and GST is raised on the lease rentals

Benefits

  • Payments are fully tax deductible if the equipment is used for business
  • Deposits are not required
  • Manage your working capital better
  • Payments are fixed for the term of the agreement giving you certainty for budgeting purposes

 

Hire Purchase

A Commercial Hire Purchase (CHP) is a facility under which you obtain goods by hiring them over the term, with title transferring to you after the last payment. It will suit your company if you use the ‘accrual’ (turnover >$1m p.a.) method of accounting for GST. Under the ‘accruals’ method, the GST component of the purchase price can be claimed back on your next Business Activity Statement, rather than claiming the GST over the term of the finance contract. 
 

Features

Flexibility is a key feature of a CHP:

  • You can either finance the total purchase price, or use a deposit or trade-in to reduce the loan repayments
  • You can even use the GST refund to contribute towards paying off the loan, thereby reducing the amount financed and the interest paid over the term of the loan
  • You can have a balloon payment at the end of the term that will reduce the payments during the term

Benefits

Unlike a Chattel Mortgage, you do not become the owner of the equipment until all payments are made under a CHP arrangement. However, you can still claim a tax deduction for the depreciation as well as the interest paid each financial year. GST is not payable on the repayments as they are calculated using the GST inclusive price.

 

Chattel Mortgage

A Chattel Mortgage facility can benefit those small to medium sized businesses that account for their business using the Cash Method.

Like other financing products, you have full use of the equipment during the term. You have the security of a predictable monthly payment, which can be lowered by including either a deposit or an end of term “balloon’. Unlike other products, however, you have ownership of the equipment from the beginning. It is simply a loan secured by a mortgage over the equipment.

A balloon is the amount that will need to be paid at the end of the term (much like a residual on a lease). Having a balloon put into your agreement lowers the payments which might better suit your cash flow and whether you have a balloon or not is entirely up to you. However you may choose to pay the loan down to zero which means once the final payment is made there is nothing else to pay. 

Features

Some of the big benefits of a Chattel Mortgage include:

  • Subject to credit approval, we will finance 100% of the purchase price
  • Terms range from 2 years to 5 years
  • Interest and depreciation is tax deductible if the asset is used for business
  • The interest rate is fixed for the term
  • No GST is charged on the payment
  • Customers registered for GST can claim the GST that is included in the purchase price
  • A balloon payment will lower your regular monthly payments. This not only improves your cash flow, but makes the equipment more affordable.

Benefits

There are GST, interest and depreciation implications:

  • The monthly repayment or balloon amount is not subject to GST
  • Where the equipment is used for business use, you can claim ‘interest’ and depreciation”. That is, interest on the payments and depreciation
  • GST is also claimable on the purchase price of the equipment in one amount

 

The Process

The Relion Finance Credit Application process can be completed very quickly if you provide all the information required.

Step 1 : Client Emails or Faxes completed Finance Application Form to Relion Finance.

Fax Number: 02 8212 5888
Email: credit@relionfinance.com.au

Step 2 : Relion Finance confirm with client (you) and Barcode Datalink that the application is received

Step 3 : Credit submission prepared

Step 4 : Client and Barcode Datalink advised if application has been approved (continue to Step 5.)/Declined (end here)/further information required

Step 5 : Relion Finance request Tax Invoice from Barcode Datalink Pty Ltd

Step 6 : Relion Finance prepare/forward documentation to the customer for signing

Step 7 : Customer signs agreement and returns all originals to:

Relion Finance
P.O. Box 110
Surry Hills NSW 2010

Step 8 : Relion proceeds to settlement

Step 9 : Funds transferred electronically to the Barcode Datalink Pty Ltd

Step 10: Barcode Datalink Pty Ltd installs the solution

Please Note: that Barcode Datalink Pty Ltd is not privy to your financial information & Relion does not share your information with Barcode Datalink. Once you complete the application form you should send it directly to Relion Finance either by fax or email.

Download the application form now to get the process started.