Plain-English definitions of common equipment finance and insurance terms. These are general explanations, not legal or financial definitions, and don't describe the specific terms of any policy or finance agreement.
A larger final payment at the end of a finance term, used to reduce the size of regular repayments along the way. Whether a specific agreement includes one depends entirely on its terms.
A finance structure where the business owns the equipment from settlement, while the lender holds a registered security interest until the loan is repaid.
The accounting treatment of an asset's value reducing over time. How and when depreciation can be claimed depends on the asset, the finance structure used, and current tax rules.
A finance structure where the financier owns the equipment during the term, with ownership transferring to the business once the agreement is completed.
An arrangement where the financier retains ownership of the equipment for the term, and the business pays for its use rather than financing a purchase.
The Australian register where lenders record a security interest over financed assets, such as equipment under a chattel mortgage. It exists independently of any specific lender or platform.
Cover for claims that a business's operations have caused injury to another person or damage to their property.
The estimated value of an asset at the end of a finance or lease term — relevant to operating leases and some hire purchase agreements, but treated differently depending on the structure and agreement.
A lender's registered legal claim over an asset, used as security for a loan. It's released once the underlying finance is repaid in full.
The length of a finance or lease agreement, typically expressed in months, over which repayments are made.