Perth's construction and commercial sectors continue to drive economic growth across Western Australia. Whether you're expanding operations, buying new equipment, or upgrading existing equipment, securing the right finance solution can make all the difference to your business success.
Understanding Equipment Finance Options
Equipment finance provides businesses with the capital needed to purchase essential assets without depleting working capital reserves. For Perth businesses, Equipment Finance Brokers can access Equipment Finance options from banks and lenders across Australia, ensuring you find the most suitable loan options for your specific business needs.
Construction equipment represents a significant investment, with items such as:
• Excavators and dozers
• Cranes and graders
• Trucks and trailers
• Tractors and specialised machinery
• Office equipment and work vehicles
• Factory machinery
Commercial Equipment Finance Solutions
When applying for equipment finance, understanding the different commercial equipment finance structures available helps you make informed decisions:
Chattel Mortgage
This popular option allows businesses to claim ownership of the vehicle or equipment immediately while using it as collateral. You'll benefit from potential tax advantages through depreciation claims and GST credits on the purchase price.
Hire Purchase
With hire purchase agreements, you make fixed monthly repayments over the life of the lease. Ownership transfers to your business once all payments are completed, making this structure particularly suitable for essential business equipment.
Operating Lease
This option helps manage cashflow by spreading costs over time without requiring a large upfront investment. Monthly payments remain consistent throughout the lease term, supporting budget planning.
The Application Process
Equipment Finance Brokers understand that time is critical when acquiring new machinery or vehicles. The streamlined application process typically involves:
- Initial consultation to assess your business needs and equipment requirements
- Documentation preparation including financial statements and equipment quotes
- Lender comparison across multiple banks and financial institutions
- Application submission with professional presentation to increase approval chances
- Settlement coordination to ensure timely equipment delivery
Factors Affecting Your Finance Application
Several elements influence your loan amount and interest rate:
• Business financial history and trading performance
• Equipment type and expected depreciation
• Loan term and repayment structure
• Current market conditions
• Existing business relationships with lenders
Benefits for Perth Businesses
Working with experienced finance professionals provides Perth businesses with distinct advantages:
Broader Market Access
Equipment Finance Brokers maintain relationships with numerous lenders, providing access to finance options that individual businesses might not reach independently.
Professional Presentation
Brokers understand what lenders seek in applications, presenting your business case in the most favourable light while addressing potential concerns proactively.
Time Efficiency
Rather than approaching multiple lenders individually, brokers handle the comparison process, saving valuable time that business owners can dedicate to operations.
Ongoing Support
Professional brokers provide guidance throughout the application process and remain available for future equipment finance needs as your business grows.
Making Equipment Finance Work
Successful equipment financing requires careful consideration of your business's operational requirements and financial capacity. Consider these factors:
• Match loan terms to equipment's productive lifespan
• Evaluate total cost of ownership including maintenance and operating expenses
• Plan for technology upgrades and changing industry requirements
• Maintain adequate insurance coverage for financed assets
• Keep detailed records for tax and accounting purposes
Whether you're acquiring your first excavator or expanding a fleet of commercial vehicles, the right equipment finance solution supports business growth while preserving working capital for day-to-day operations.
At Freo Finance, our experienced team understands the unique challenges facing Perth businesses in construction and commercial sectors. We work with you to identify suitable finance options that align with your operational requirements and growth objectives.
Call one of our team or book an appointment at a time that works for you to discuss your equipment finance requirements and discover how we can support your business growth.
