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ABOUT CNH CAPITAL AUSTRALIA

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					ABOUT CNH CAPITAL AUSTRALIA
CNH Capital has made a difference to the livelihoods of farmers around the world for over 50 years.
During this time a wide array of flexible financial products and services have been delivered to more than
500,000 customers in Australia, as well as North America, Latin America and Europe.

Today, these products and services are made available through the Case IH network of approximately
12,000 independent dealerships and distributors located in 160 countries.

In Australia, CNH Capital has been the financing source of choice for Case IH equipment customers
since 1979. Over the years, CNH Capital has developed a close understanding of the challenges faced
by Australians on the land and has consistently supported farmers through good times and bad.

With a Case IH network of over 100 dealerships Australia-wide, CNH Capital offers a ‘one-stop-shop’ for
all your farming equipment and finance* needs.

In line with the quality of Case IH equipment, our finance products are world-class, offering you
competitive rates, no early payout penalties, flexible deposit and repayment structures, and much more.

We know the issues our customers face
We understand what our customers need, how their businesses work and what they want to achieve,
because we’ve been working with them for decades. In fact, that’s what sets us apart from other
financiers.

Everything we do is based on understanding your goals, challenges, and outlook on the future. Our team
of professionals tailor financial packages and solutions that match the unique needs of each and every
customer.

Strong business relationships are the key to our success
We know that in the agriculture industry things go in cycles, and we’re there for the tough times as well as
the good times. Our customer relationships remain strong throughout the inevitable industry ups and
downs. Your success is our success, so we’re flexible and innovative, and we’ll stick with you.

We’ve stood the test of time, too
CNH Capital was established over 50 years ago, and its parent, the Fiat Group, was founded over 100
years ago. The Fiat Group is one of the largest consortiums of automotive manufacturers in the world,
producing the renowned Fiat, Alfa Romeo, Ferrari, Lancia, and Maserati cars, and Iveco trucks and
commercial vehicles, in addition to the CNH brands. The combined know-how of these leading
automotive brands is envied throughout the machinery industry.




*CNH Capital recommends that advice should be sought from your accountant or financial advisor on which form of finance best suits your current requirements and on any tax
implications
Flexible Payment Options
We believe that by understanding the special needs of Australian farmers we can create a more flexible
and appropriate range of repayment options. Please take a moment to consider the CNH Capital
payment option that’s best for you.

Structured/Seasonal Payment Plan
A schedule where the timing of repayments is structured in line with your income patterns. This payment
structure can really help smooth out your cashflow by aligning payment timing with your seasonal income
flow.

Deposit Options
For customers who wish to provide little or no deposit towards the purchase of their equipment, CNH
Capital can provide flexible payment options to help match your cashflow to an appropriate payment plan.




Flexible Finance Options
                                                            FINANCE TYPE
    FEATURES                  Loan & Goods         Commercial Hire
                                                                           Finance Lease          Operating Lease
                                Mortgage             Purchase
   Ownership during
                                Customer               Financier              Financier               Financier
     agreement
  Ownership at end of
                                Customer               Customer               Financier               Financier
     agreement
   GST tax credit on       Customer on next BAS    Customer over the
                                                                              Financier               Financier
    purchase price              statement           term of the loan

   GST on payments                 No                     No                     Yes                    Yes

   Payments are tax
                                   No                     No                     Yes                    Yes
      deductible
 Interest & Depreciation           Yes                    Yes                    No                      No

   Off balance sheet
                                   No                     No                     No                     Yes
      accounting

                                                                                                    No residual risk
                           Larger deductions at   Larger deductions at   Tax deductions equal
                                                                                                 Tax deductions equal
  General Comments         outset reducing year   outset reducing year     to your payments
                                                                                                to your payments each
                                  by year                by year               each year
                                                                                                         year


All of the above finance options can be used in conjunction with a CNH Capital Credit Line. This
revolving facility simply allows you to draw down from a pre-approved finance limit when making an
equipment or business asset purchase.

To find out more about our Credit Line facility or any of our finance options, we have provided more
information in the following product information sheets. Please do not hesitate to contact us on
1800 807 934 if you would like to discuss further.
Lease and Loan Options

LOAN AND GOODS MORTGAGES
CNH Capital’s Loan and Goods Mortgage enables you to immediately receive the benefits of equipment
ownership, as title passes to you upon purchase.

Under a Loan and Goods Mortgage, CNH Capital takes a mortgage over the equipment for the duration
of the loan.


Advantages

The Loan and Goods Mortgage features a fixed interest rate for the term of the loan, so you always know
how much you need to pay. A flexible deposit and payment schedules tailored to suit your individual
business requirements make it easier to fit the purchase into your budget.

As the owner of the equipment, you may be able to claim depreciation and interest costs as tax
deductible expenses and you may also be able to claim GST as an input tax credit in your Business
Activity Statement. Your financial adviser can give you more detailed information about what tax benefits
you might be entitled to.

You can upgrade your equipment during the terms of your agreement.



Product structure

       Payments can be tailored to match income cycles or seasonal requirements
       Terms range from 12 – 60 months
FINANCE LEASE

If you want to use the latest equipment but prefer not to outlay the full purchase price up front, a Finance Lease
could be the perfect solution.

Under a Finance Lease, CNH Capital purchases the equipment and rents it to you for an agreed period, at
fixed repayments.

At the end of the term, you may be able to purchase the equipment by re-financing with CNH Capital or by
purchasing it outright at the agreed residual value.


Advantages

A finance lease is a good way to expand or update your equipment without tying up working capital. It’s a great
option for those times when you really need a new piece of equipment but don’t have the funds available to buy
it outright.

And because you don’t need to pay a deposit, you can get the equipment you need even if you don’t have
a lot of capital available.

A finance lease gives you the opportunity of ownership as well as the cashflow benefits of lower payments.
The fixed underlying interest rate and fixed rentals for the term of the agreement make it easier on your budget
because you know exactly how much you’ll be paying each month.

Regular repayments may be able to be claimed as a tax deductible business expense – talk to your financial
adviser for confirmation.

CNH Capital retains legal title during and after the term of the agreement. However, in most cases, we will
usually consider your offer to purchase the goods at the agreed residual value at the end of the lease term.
Title of the goods will then be transferred to you.

The monthly rental payments are 100% tax deductible, provided the goods are solely used for business
purposes. The amount financed is exclusive of GST as CNH Capital will cover the GST cost as we are
purchasing the goods for you. The monthly rental payments are subject to GST as is the residual value,
however you will be able to claim the GST on your BAS statement if the goods are solely used for business
purposes.


Product structure

       Payments can be tailored to match income cycles or seasonal requirements
       Payment structure includes a final residual value
       Rental repayments are required in advance
       Terms range from 12 – 60 months
COMMERCIAL HIRE PURCHASE

CNH Capital’s Commercial Hire Purchase is designed for customers who want to own their equipment outright
at the end of the agreement but want to preserve working capital in the meantime. Under a Commercial Hire
Purchase agreement, ownership of the equipment does not pass until final payment is made.


Advantages
While this product gives you the great benefit of preserving your working capital as you pay off the equipment,
you’re still considered the owner of the equipment for tax and accounting purposes. As the owner of the
equipment, you may be able to claim depreciation and interest costs as tax deductible expenses and you may
also be able to claim GST as an input tax credit in your Business Activity Statement. Your financial advisor can
give you more detailed information about what tax benefits you might be entitled to.

The product will also help you build equity which you can then roll over into your next purchase, as well as
allowing you to spread the cost of the purchase over a manageable time frame. This can be very useful in
terms of managing your cashflow and planning your budget.

Fixed interest rates provide protection against rate rises, and you get to choose the size of the deposit.



Product structure
       Payments are tailored to match income cycles or seasonal requirements
       Commercial Hire Purchase is a fixed term contract and the equipment financed serves as the primary
        form of security
       Terms range from 12 – 60 months.
OPERATING LEASES

An Operating Lease is the ideal way to get the latest equipment into your fleet without having to buy it.

An operating lease is simply a rental agreement. You pay to use the equipment but you don’t have to buy it
(unless you want to). You don’t have to worry about the residual value of the machine at the end of the term,
either – you can just hand it back*, or choose from a range of other end of lease options.

CNH Capital offers fully maintained and non-maintained operating leases. A fully maintained operating lease
includes all maintenance and servicing during the lease period, while a non-maintained operating lease simply
means you take responsibility for the upkeep of the machine.

If you choose a fully maintained operating lease, all of the operating costs (such as interest, scheduled
servicing, depreciation and maintenance) of the equipment are covered by a single monthly payment to CNH
Capital. CNH Capital then enters a servicing agreement with your local dealer, who completes all maintenance
and servicing.

Operating Leases are available for new and select used equipment.


Advantages
There are many advantages to an operating lease. The main one is that it provides you with the best and latest
equipment for your business.

In addition, the low monthly payments are fully tax deductible and there are no large upfront deposits required.
And because the machines are leased, they don’t appear on your balance sheet, allowing you to improve your
key accounting ratios. You’ll also be able to preserve your existing credit lines.

Choosing an operating lease makes it easier for you to upgrade your equipment regularly, and your dealership
may offer bundled solutions, for example by including extended warranty options in the lease agreement.

These benefits all come with no residual risk to you because CNH Capital retains ownership of the machines
throughout the lease term*.

At the end of your lease you can choose to:

• hand the leased unit back and upgrade to the latest new equipment

• extend the rental period on the current leased unit

• offer to purchase some or all of the equipment at fair market value

• return the equipment with no further payments required

It really is that simple.



* Subject to fair wear and tear conditions
CREDIT LINE

A credit line is a simple, flexible financing solution that will help you streamline your business by giving
you pre-approved access to funds that you can use as you need.

A credit line is especially useful if you’re looking to expand your business. The revolving facility provides
a pre-approved limit that you can draw down on when making equipment and business asset purchases.

This flexible approach means you always know how much you can afford to spend, so you can purchase
what you need, when you need it. Once you’ve established a credit line, you know there’ll be no delays or
detailed paperwork – it’s simple, straightforward and quick.


Advantages
With a credit line, you have access to funds for equipment purchases up to an agreed approved limit. It’s
up to you to determine how much of the limit you want to use, and when to use it.

The Credit Line delivers a simplified documentation process and reduced paperwork. After the initial
contract is signed, only one or two signatories per purchase are required, which can make buying new
equipment much easier for organisations with several directors.

The speedy draw down process means payments can be organised quickly. As the facility is revolving,
your available credit goes back up as you pay off purchases, and a credit line is simple to use and easy to
establish.

Having ready funding available makes it easier to upgrade your equipment regularly or respond quickly to
changing business needs.



Product structure

       A Credit Line is a renewal facility which can be used in conjunction with a Loan and Goods
        Mortgage, Finance Lease, Commercial Hire Purchase, or Fully Maintained or Non-Maintained
        Operating Lease
       Payment schedules are determined at the time of equipment purchase and the approved credit
        limit is reviewed once a year.
The CNH Capital Team
Meeting all your asset finance needs

At CNH Capital, our team of fully trained Finance Managers are dedicated to providing you with all the
help and advice you require, whether over the phone, face to face or a visit to your property.

In addition, our Sales Team are trained to offer assistance by phone or email. They can offer assistance
on finance quotes, updates on your loan status, information on alternative finance option and many other
services.




Your local Case IH Dealership
A one stop equipment and finance shop

Your local Case IH dealership gives you the easiest and best access to owning or leasing quality
agricultural equipment.

Your dealer is not only an expert in Case IH equipment and trained to advise you on the most appropriate
equipment for your farming needs, they can also offer you access to the most suitable type of finance to
match your business needs.

Through your local Case IH dealership, CNH Capital provides a full range of finance options for every
piece of equipment you purchase.

For a finance quote or more information, simply contact your local Case IH dealership, or alternatively you
can contact CNH Capital on 1800 807 934 or apcnhcassistance.com.au

				
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