Perth's construction and mining sectors continue to drive demand for earthmoving equipment, from excavators and dozers to graders and cranes. For businesses looking to expand their fleet or upgrade existing equipment, Asset Finance provides a pathway to acquire essential machinery without the substantial upfront costs.
Understanding Asset Finance for Earthmoving Equipment
Asset Finance allows businesses to purchase or lease commercial equipment while preserving working capital. When buying new equipment or upgrading existing equipment, this financing solution enables you to spread the cost over time through fixed monthly repayments, helping you manage cashflow more effectively.
The equipment itself serves as collateral for the loan, which can result in more favourable terms compared to unsecured lending. This applies to various types of commercial equipment finance, including:
• Excavators and mini-excavators
• Bulldozers and dozers
• Graders and scrapers
• Cranes and lifting equipment
• Trucks and trailers
• Tractors and agricultural machinery
• Specialised machinery for specific industries
Key Finance Options Available
Chattel Mortgage
This popular option allows you to own the equipment from day one while using it as security. You can claim depreciation and GST benefits, making it attractive for businesses with strong cash flow.
Hire Purchase
With Hire Purchase arrangements, you gain ownership at the end of the agreement. This structure often requires lower deposits and can accommodate businesses with varying financial profiles.
Operating Lease
For businesses preferring to use equipment without ownership obligations, operating leases provide access to machinery for the life of the lease. This option often includes maintenance packages and upgrade opportunities.
Benefits of Asset Finance for Perth Businesses
Asset Finance offers several advantages when acquiring earthmoving equipment:
-
Preserved Capital: Rather than depleting cash reserves, businesses can maintain liquidity for operational needs and unexpected opportunities.
-
Predictable Payments: Fixed monthly repayments assist with budgeting and financial planning, providing certainty over the loan term.
-
Tax Advantages: Depending on the finance structure chosen, businesses may claim depreciation, interest, and other tax benefits.
-
Flexible Terms: Loan amount and repayment terms can be tailored to match your business needs and equipment usage patterns.
The Application Process
Applying for Asset Finance typically involves providing business financial statements, equipment quotes, and details about intended use. The streamlined application process focuses on both business serviceability and the equipment's value as security.
Lenders assess factors including:
• Business trading history and profitability
• Equipment type and expected depreciation
• Industry conditions and market outlook
• Loan amount relative to equipment value
Working with Finance Professionals
Navigating the various loan options and lender requirements can be complex. Mortgage and finance brokers can access Asset Finance options from banks and lenders across Australia, potentially securing more competitive interest rates and terms than approaching lenders directly.
Brokers understand the specific requirements for different types of commercial equipment finance and can match your business profile with appropriate lenders. This includes non-bank lenders who specialise in equipment finance and may offer more flexible criteria.
Making the Right Choice
When considering Asset Finance for earthmoving equipment, evaluate factors beyond just the interest rate. Consider the total cost of finance, flexibility of terms, and alignment with your business cash flow patterns.
Whether you're a small contractor needing a single excavator or a large operation requiring multiple pieces of machinery, Asset Finance can provide the funding solution to support your business growth.
For Perth businesses ready to invest in earthmoving equipment, professional guidance can help identify the most suitable finance options and lenders for your specific requirements. Call one of our team or book an appointment at a time that works for you.
