The terms “sale/lease back” and “sale/hire back “ refer to transactions where a client owns goods and sells them to the Bank with the view to hiring or leasing them back.

Where a transaction is deemed to be a “sale/lease back” or “sale/hire back”, the following must be confirmed:

• The Client is not seeking working capital to ease liquidity problems. If so deal will not be approved.
• How long goods have been owned by the client. If longer than 3 months it is unlikely that transaction will be considered by the Bank.
• Determine if goods are already encumbered to another financier. Note: where goods are subject to a lease with another financier they will be treated as a private sale.
• Confirm the type of product required by the client. If the client is a company (all states and territories) or an individual (QLD, SA, TAS, NT or ACT only) we may not be able to accommodate any requests for Sale/hire back. An equipment loan option may be available.

The following actions will also be required:

• Goods will need to be valued and inspected in terms of the Banks Valuation and Inspection policy.
• Any General Security Interests (GSI’s) (formally known as Fixed & Floating charges) will need to be fully discharged or an original notification of release is to be provided.
• Any monies outstanding against the goods will have to be paid out directly by the Bank.

Documentation will include:

• Contract for Sale. This will be prepared by the Bank and is required to show passing of title to the Bank.
• A separate tax invoice if vendor is registered for GST.
• An Australian Tax Office (ATO) NAT3346 Statement by Supplier executed by vendor if supplier is not registered for GST.
• A copy of the original invoice is required, confirming purchase of the goods by the vendor or, where an invoice is not available a statutory declaration (prepared by Bank) is to be obtained from the vendor stating they own the goods and that the goods are unencumbered.
• Proof that the vendor purchased the goods ie copy of bank statements showing payment, Nil Balance Tax invoice or other documentation deemed acceptable by the Bank.
• Clear PPSR check for all registrable goods.

When an equipment loan facility is requested and clients already own the asset the above actions should also be followed, with the exception of the documentary requirements that relate specifically to sale of the asset to the Bank.

Location

Remember it doesn’t matter where your car loan was organised in Australia. We organise car loans in every state and capital city, including: Car Loans in Melbourne, Car Loans in Sydney, Car Loans in Brisbane, Car Loans in Perth, Car Loans in Adelaide, Car Loans in Hobart, Car Loans on The Gold Coast, Car Loans in Darwin, and Car Loans in Cairns.