Business and Commercial solar finance
Moving forward Geelong businesses are getting more savvy with expenses and wanting to protect their businesses from outside influences they have no control over. As the price of electricity supply and other commodities soar, business owners across Geelong and Victoria are facing massive increases to their expenses and seeing impacts on their bottom line. Solar power gives the business owner the opportunity to take control over their energy costs and manage their budget more effectively. The finance repayments may also be tax deductible to the business.
Specialty Solar finance
Commercial finance for solar systems is very specialised and traditional major banks and lenders are not generally interested in financing solar power, or accepting solar equipment as collateral. However we have a good relationship with several solar lending companies and can access reasonable rates and terms for most installations.
Renewable energy finance options
Not only can finance be used to supply commercial solar, but finance can also incorporate energy efficient lighting, such as LED Hi bays and retrofitting shop store fronts, all leading to a more energy efficient business and reduced energy costs. We at Velocity Solar are licenced electrical contractors and have the ability to be the complete one stop shop for all renewable energy options.
Below are some examples of different Finance options that Velocity Solar can accommodate for commercial solar in Geelong. Velocity Solar does not recommend any of the options over others and recommends that you discuss the options available with your accountant, to find the one most relevant to your needs.
Chattel mortgages can have the some of the following features:
- Up to 100% of the invoice cost can be financed
- The client owns the equipment from day one
- The client claims 100% of the GST back in the first BAS period
- The client claims tax deduction for the interest component of the repayments
- Clients can claim depreciation of the equipment
- Loan is shown as a liability on the clients balance sheet
- Standard loan term of 60 months (up to 120 months may be available for large corporate clients)
Operating Lease (Rental Contract)
- Repayments are 100% tax deductible (as opposed to only being able to claim interest and depreciation on the Chattel Mortgage)
- After the rental term the client can offer to purchase the equipment off the funder (usually for an amount equivalent to one month repayment).
- Off balance sheet expense – is not shown as a liability on the customers balance sheet
- Fixed payments for the term of the agreement – makes it easy to budget for
- Utilises the asset being financed as the security
- 100% of the cost is financed – install, engineering and supply
- Preserves the customers working capital and existing funding lines
- Similar to the Chattel Mortgage but GST cannot be claimed up front, and asset is owned by client upon final payment.
Low Doc Lease – under $35k
This facility might not be for everyone but it’s is a fast and simple solution for any business lease under $35,000.
There are absolutely no financial statements (tax returns, BAS etc) required; you simply need to have held a valid ABN with GST registration for 2 years or more, and preferably be a property owner.
You can borrow 100% of the equipment cost over 5 years.
One simple application form, no financials, great interest rates – what could be easier?