What are the benefits of a Aussie Commercial Lease Bond
Aussie Lease Bonds are a smarter alternative, with obvious cost savings
As an example, with a $50,000 Bond (representing 3 months rent and outgoings) for a 5 year tenancy period, the Bond Fee is $5,675.00* including non-refundable Application Fee of $550.00 (includes GST). This averages out to $975.00 per annum.
As the Commercial Lease Bond is an off balance sheet item, once it replaces the security deposit for the Lease, it automatically frees up the capital your business has had tied up to either invest back in the business or invest in an interest bearing account.
Its your choice.
Further benefits include.
For the Tenant:
- Business funds are not tied up.
- Aussie Lease Bonds are an ‘off balance sheet” item, freeing up capital and reserves for the business
- The “One Off” premium is tax deductible.
- Aussie Lease Bonds are issued for the initial term of the lease.
- Only one up-front charge for the entire lease period.
For the Landlord:
- As good as cash as a security deposit for the Lease (please see Blake Dawson Opinion)
- Eliminates accounting for interest
- An external assessment of the credit worthiness of the tenant in question
- Not currently subject to the jurisdiction of bankruptcy courts
If you’re already committed to another form of rental security bond on your existing lease, you can switch to an Aussie Lease Bond at any time.
Who can apply for a Bond?
Any tenant of a property including:
- Existing tenants who wish to free locked up cash, and replace their current bank guarantee or cash security bond.
- Expanding businesses, wishing to lease bigger or more appropriate premises
*This is an indicative quote for the basis of the example only.
