P&E Loans

At Cairns Business Loans we work to provide vehicle and equipment finance solutions to our clients, and to do so professionally.

We aim to work with  a range of superior financial products and the best possible service providers to ensure that your Equipment and Finance needs are met as a matter of urgency.


Chattel Mortgage

A chattel mortgage is a facility used for business purposes, where you use an asset that you own or are acquiring in your name as a security for the loan until the contract is paid in full. The goods are assured to be fully paid at settlement; hence a GST claim can be made in full with the next BAS statement. The owner can claim the interest component of the loan and depreciation on the asset provided it is used to generate taxable income.

Consumer Loan

We are able to arrange personal loans for a large range of reasons including private motor vehicles, boats and caravans, as well as holidays, renovations and the purchase of furniture.

Finance Lease Agreement

A lease agreement can be an effective way for a company to acquire assets for business use. Lease rentals are calculated for an agreed time frame with the rentals normally being tax deductable. Agreements are flexible and payments can be calculated monthly or quarterly, half yearly or annually. At the end of the term, a residual value is paid (predetermined at the commencement of the lease) to acquire the goods from the financier. This way your rentals can be structured to meet your cash flow requirements.

Operating Lease

An operating lease is a type of lease in which the financier retains ownership of the asset. Under an operating lease there is no predetermined residual value to pay, however a client may choose:

  • to hand back the equipment and upgrade
  • to hand back the equipment
  • to continue to lease/rent the equipment
  • to make an offer to purchase the equipment at fair market value

Novated Lease

Under a novated lease, an employee leases a motor vehicle from the financier using a normal lease agreement. A novation agreement is entered into between the employee and the financier, under which the employee’s obligation to pay the rental is transferred to the employer for the term of the agreement or until employment ceases. Therefore the employer pays the lease rentals direct to the financier.

The car remains with the employee should he leave the employer and a new novated agreement can be entered into with a new employer.

There may be tax advantages to all parties under a novated lease agreement.