Common types of asset finance products

Operating leases and finance leases are treated as consumer leases under the National Credit Code. Hire purchase agreements and chattel or goods mortgages are treated as loan agreements which are supported by a security interest.

This guidance note contrasts an operating lease with a finance lease and discusses the four products in terms of Australian accounting standards and the National Credit Code. This guidance note also discusses the introduction of accounting standard IFRS 16/AASB 16 and how it affects finance documents.

See Common types of asset finance products.