Equipment Finance

Equipment Finance

Getting your business underway requires you to have a wide range of equipment. This is regardless of your industry. From small machines to much larger ones, you will need to have functional options within your business. However, while there is no doubt about their usefulness, getting them is where the problem arises. This is thanks to the financial obligations that accompany their purchase.

Typically, this is considerable, reaching up to thousands of dollars. Well, you do not have to worry about this anymore. With the use of equipment finance, you can avoid your financial limitation. In turn, you get the business equipment you need and spur business growth.

What is Equipment Finance

This is a commercial product that eases your purchase of essential business equipment. With this product, you do not have to worry about bearing the cost of a direct purchase. You transfer this burden to a third-party. This third-party provides the equipment while you commit to making repayment over a period.

This option is relevant whether you are small scale business looking to expand. You can also take advantage of it if you are large scale business looking to improve your equipment fleet. All you need to do is get a willing lender, enter into a favourable agreement, and boost business growth.

What Can You Finance?

You can finance a wide range of equipment. They include:

  • Warehousing equipment and machinery such as packers, wrappers, and forklifts
  • Specialist industry equipment and machinery such as commercial printers, medical equipment, and lathes
  • Office furniture and machinery such as IT systems, electronics, multifunction printers, and computers
  • Shop fit-outs like POS systems, commercial kitchen equipment, and freezer rooms

Equipment Finance Options

You can take advantage of a wide range of finance options when purchasing your equipment. They include:

Chattel Mortgage

This is the most common type of equipment loan arrangement. This type of finance option allows you to get access to your equipment upfront. In this case, you get ownership upfront. Then, you enter into a mortgage agreement with your lender as security for the loan. Now, as soon as you complete payment, you end the mortgage agreement and enjoy unencumbered access the equipment.

This option is tax-effective, provides access to flexible terms, and supports a one year to seven-year payment duration.

Low Doc Loan

This is a finance option that allows startups to obtain equipment finance. This option requires you to provide little or no documentation about your financial status. Precisely, you do not need to provide extensive documentation associated with other loan options. You get a flexible term, a fair interest rate, and a payment duration between one and seven years.

Hire Purchase

This is a finance option that allows you to hire the equipment of your needs. As such, you do not get ownership at first with this arrangement. All you get is ownership and the option to purchase the equipment at the end of the hire period. As always, you commit to the repayment of a sum over a while, usually one to seven years. It is also tax effective.