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Sterling Financial Group was established in 2000 by Babo Group Pty Ltd.
With accounting clients from a wide range of industries, Sterling Financial Group was established to compliment Babo Group's existing Accounting practice and to provide a wider range of services to these clients.
At Sterling Financial Group, we understand the specific needs of our clients and will assist in ascertaining the most suitable finance option.

Equipment & Motor Finance

Equipment and vehicle finance is a loan used to purchase business related equipment without having to pay for the equipment upfront. Purchasing equipment outright can put a substantial strain on your cashflow but with equipment financing, you make periodic payments that include interest and principal over a fixed term.

Why choose us?

  • We specialize in business finance where the asset will be used more than 50% of the time to earn assessable income
  • We can finance a range of assets including vehicles, machinery, computers, and other types of equipment
  • We can assist with finance for the following applicants: Companies, Trusts, Partnerships, Sole Traders, and individuals


A chattel mortgage is a loan used to purchase a car or piece of equipment. While the vehicle or equipment is owned by you or the business, the lender will use the vehicle as a security against the loan. Once the contract is completed, the lender removes the security interest, giving you clear title to the vehicle or equipment.

Benefits of a Chattel Mortgage

  • Compared to unsecured loans, the interest rate for a Chattel Mortgage will typically be lower due to the asset being secured by the lender
  • Flexible contract terms ranging from 12 to 60 months. You can also choose to set up a balloon/residual at the end of the term to lower your monthly repayments. It is important to note however that a large balloon payment will increase the amount of interest paid over the term of the loan.
  • A tax deduction may be available – Please refer to your accountant for eligibility
  • A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)

Types of Leases

  • Finance Lease

A Finance Lease is an agreement whereby the financier owns the goods and you rent these goods from the financier.  You must show the lease on your balance sheet as an asset with a corresponding liability.  Finance Lease agreements must have a residual lump sum which represents the potential sale price of the goods at the end of the term lease.

  • Novated Lease

A Novated Lease is the only equipment finance product where the asset does not need to be used for at least 51% business use.A Novated Lease agreement is where an employee leases a car and then sub-leases (novates) it to their employer who pays the lease rentals.  The employer agrees to have these lease novated to them while the employee remains in their employment.  The employee remains fully liable for the debt and failure of the employer to pay the rentals constitutes a default.

  • Operating Lease

An Operating Lease is a pure rental agreement, with no documented residual (however, the financier may in fact take the risk of covering the residual).  The goods can be returned to the financier when the agreement expires.As Operating Leases are usually written for terms significantly less than the useful life of the equipment, the financier should be in a position to sell at a profit or extend the lease at the same monthly repayment.  The outstanding debt to the financier is reduced so the effective interest rate for the extended period is far higher than the original term.  These extended lease rentals are referred to as “Inertia Rentals”.

  • Asset Purchase (Commercial Hire Purchase)

Under an Asset Purchase agreement assets are technically hired until the last payment of the agreement is made, at which point the user receives full title and becomes the outright owner.Depending on business usage, the interest portion of the regular repayments and depreciation can be claimed as tax deductions.Chattel Mortgages are designed to allow clients using cash based accounting to claim back the full GST payment in their next BAS return.Please note that as the financiers have to register a charge on the asset, the turnaround times for chattel mortgages are greater than lease/asset purchase.  The financiers must receive original paperwork before settlement.

  • Consumer Car Loan

Sterling Financial Group Pty Ltd can also provide a consumer car loan which is captured under Asset Finance Credit Guide.

  • Leasing Providers and preferred finance

Some items are regarded poorly as security such as boats, planes, office furniture and fittings etc.  Contact our team at Sterling Financial Group to ascertain whether the goods you wish to finance are acceptable security.Similarly, some clients are regarded as a poor risk, such as owner-drivers with only one vehicle, those who have been previously declared bankrupt or have a poor credit history.

Reachout viaPhone
OUR LOCATIONWhere to find us?
Level 1/12 Cramer Street, Preston VIC 3072 | PO Box 202 Preston Vic 3072
Reachout viaPhone
OUR LOCATIONWhere to find us?
Level 1/12 Cramer Street, Preston VIC 3072 | PO Box 202 Preston Vic 3072