Australia03 Dec 2014
The Australian leasing market took off in the 1950s and early 1960s and is now a mature market with products provided by all types of financial institution. It is dominated by domestic banks, but includes international banks, captive finance companies, specialist finance companies, fleet lessors and rental companies.
Asset finance is involved in around 40% of equipment capital expenditure in Australia, making the industry an integral component in the Australian economy. There are three basic product groups: leasing (finance and operating), hire purchase, and chattel mortgage.
The Australian Equipment Lessors’ Association (AELA) was founded in 1986 and is the national association for the equipment leasing and financing industry. AELA member companies represent more than 90% of equipment finance activity in Australia, and comprise banks, finance companies, merchant banks, general financiers, equipment vendor lessors and lease packagers. Associate members include other industry associations and legal and accounting firms, and support system suppliers with an interest in lease and equipment finance products. Since its inception, AELA’s role has expanded to include hire purchase and chattel mortgages, products that are prominent in the Australian equipment finance market.