Need Equipment & Asset Finance?
Businesses often need to purchase equipment that is necessary for its day-to-day operations.
This equipment can be expensive, as can be its maintenance. This is where business equipment finance comes in. You can use this loan to buy or even rent equipment needed for your business, whether it be a forklift or even medical equipment.
What's available?
- Motor Vehicle Finance
- Truck & Trailer Finance
- Forklifts, Bobcats, Tractors and other Yellow Goods
- Equipment Finance
- Computers, Printers, Monitors
- Boats, Motor Bikes and Caravans
- Car Buying Facility
While you're in the planning stages consider whether you should buy or lease. Our Broker can help you make the decision.
Should you lease or buy a new asset?
Buy
Buying an asset outright can be better if you're buying something that your business will use on a daily basis or for years to come; or if it's a specialist piece of equipment or tool, it might be difficult to source a leased alternative at an affordable price.
Remember if you purchase outright you will be responsible for any hidden costs (such as insurance and support), while leasing (usually) includes these costs as part of the fee. Double check.
Lease
If you're considering purchasing something your business will use occasionally or will only need for a relatively short time, leasing or hiring might be better options.
Vehicles, computers, mobile phones, construction equipment and tractors can all be leased.
One advantage of leasing electronic items is that it's easy to upgrade to more recent models. Quite often if you licence software, upgrades and improvements are automatic and covered in your monthly fees. If you buy these items outright, you might face large software upgrade costs down the track.
It's about cash flow and opportunity cost. Buying a $100,000 piece of equipment using cash reserves means this money isn't available for other business needs (such as new product development or marketing).
There are several different financing routes you can choose to go with;
Finance leases
Allow you to use the asset without transferring ownership to you. You get access to the latest vehicles or equipment without tying up large amounts of capital
Novated leases
Typically used when a vehicle is included in the salary package. The employer and employee share responsibilities of the loan by signing a novation agreement
Operating leases
Typically used to finance vehicle fleets or technology purchases. The advantage of an operating lease is that payments may be considered operating costs and as such are not considered balance sheet liabilities
Commercial hire purchase loans
Allow you to hire and use the asset throughout the term of the loan. Once the loans has been repaid fully, the title and asset transfer to you