The Operating Lease allows a business to keep their technology up to date without the need for ownership. This decreases the chance of equipment becoming obsolete as companies can replace/update their equipment more often. In most cases the repayments are fully tax deductible. At the end of term assets are commonly replaced with the lease rolling over for another term.
The Chattel Mortgage allows the customer to own the equipment with $0 residual at the end of the term. All Chattel Mortgage repayments include the GST component and in most cases allows the customer to claim the GST component in addition to interest and depreciation on the asset. The debt will be included as a liability on the Balance Sheet.