Starting or expanding your business in Kewdale often requires significant investment in new equipment. Whether you need office equipment, work vehicles, or specialised machinery, the upfront costs can be substantial. This is where equipment finance becomes invaluable for business owners looking to acquire the tools they need without depleting their working capital.
Understanding Equipment Finance Options
Equipment Finance Brokers can access Equipment Finance options from banks and lenders across Australia, providing businesses with multiple pathways to fund their equipment purchases. This financing solution allows you to spread the cost of new equipment over time while maintaining healthy cash flow.
The key benefits of equipment finance include:
• Preserving working capital for day-to-day operations
• Potential tax advantages through depreciation claims
• Fixed monthly repayments for predictable budgeting
• Access to newer technology and equipment
Types of Equipment You Can Finance
Equipment finance covers a wide range of business assets. Common categories include:
Construction and Heavy Machinery:
• Excavators and dozers
• Cranes and graders
• Tractor and farming equipment
• Truck and trailer combinations
Commercial and Office Equipment:
• Computer systems and IT infrastructure
• Manufacturing and factory machinery
• Medical and dental equipment
• Restaurant and hospitality equipment
Whether you're buying new equipment or upgrading existing equipment, finance options can be tailored to match your specific business needs.
Common Finance Structures
Chattel Mortgage
A chattel mortgage allows you to own the equipment immediately while using it as collateral for the loan. This structure is popular among businesses as it offers potential tax benefits, with the equipment serving as security for the finance.
Hire Purchase
With hire purchase agreements, you make regular payments throughout the life of the lease and gain ownership once all payments are completed. This option provides:
• Fixed monthly repayments for budget certainty
• No large upfront deposit requirements
• Ownership transfer at lease completion
Factors Affecting Your Finance Application
When applying for equipment finance, lenders consider several factors that influence both approval and the interest rate offered:
• Business credit history and financial position
• The type and age of equipment being financed
• Loan amount relative to equipment value
• Your business's cash flow capacity
• Industry sector and business experience
The vehicle or machinery you're financing typically serves as collateral, which can help secure more favourable terms compared to unsecured business loans.
The Application Process
Applying for equipment finance involves a streamlined application process designed to get you the funding you need efficiently. Your broker will:
- Assess your business needs and financial position
- Compare loan options from multiple lenders
- Present suitable finance options with competitive terms
- Guide you through the application documentation
- Liaise with lenders throughout the approval process
Managing Cash Flow with Equipment Finance
One of the primary advantages of equipment finance is its ability to help manage cashflow. Rather than making a large capital outlay, you can preserve your cash reserves while still accessing the equipment necessary for business growth.
Fixed monthly repayments allow for accurate budgeting and cash flow forecasting. This predictability helps businesses plan for future expenses and maintain financial stability while investing in growth.
Commercial Equipment Finance Considerations
Commercial equipment finance requires careful consideration of your long-term business strategy. Consider:
• The expected lifespan of the equipment
• How quickly the equipment will generate returns
• Whether leasing or purchasing aligns with your tax strategy
• The impact of technological obsolescence on equipment value
Working with Equipment Finance Brokers in Kewdale
Freo Finance understands the unique challenges facing Kewdale businesses. Our experienced team can access a wide network of lenders to find finance options that align with your specific requirements and industry needs.
We work with businesses across various sectors, from construction companies needing heavy machinery to professional services requiring office equipment upgrades. Our local knowledge of the Kewdale business community enables us to provide tailored solutions that support your growth objectives.
Call one of our team or book an appointment at a time that works for you.