Equipment Loans
When you’re in the process of buying business equipment it is very common to get caught up in the moment and just go with the easy finance option that is put in front of you. My Finance Consultants has access to over 20 different equipment lenders, this ensures that you can obtain the right lending solution for your individual circumstances.
We have particular expertise and capability in arranging finance for established businesses. In many cases we can arrange equipment finance for businesses without the need to produce financial reports or tax returns. We can help you obtain competitive equipment finance interest rates and flexible repayment structures to suit your individual needs.
My Finance Consultants has the relationships and expertise to guide you through the application process. We will take care of the paperwork, manage settlement documents and ensure the timely delivery of your new equipment. Speak to us about the most competitive equipment finance deals before you place your next purchase order.
Business use equipment finance
When it comes to business use equipment finance, there are four different types of finance available to borrowers. Which one you decide to go with will be dictated by the tax implications of each.
Secured Equipment Loan
A secured equipment loan is a facility where your business purchases the equipment with funds from the lender who registers an interest over the equipment as security. A secured equipment loan is for those who want to have ownership of the asset. In the event of default, the lender has a right to repossess the security and recover the unpaid funds from the sale proceeds.
Commercial Hire Purchase
A commercial hire purchase is when the lender purchases the equipment on your behalf and you hire it from them. At the end of the hire term, with a final lump sum payment known as the residual value, ownership of the equipment transfers to you with a clear title. It’s similar to a secured equipment loan, except you own the equipment at the end of the contract instead of at the beginning.
Finance Lease
A finance lease is similar to a commercial hire purchase with the exception that there is only an option to take ownership at the end of the term, rather than it being automatically transferred after the last repayment. Therefore, the repayments are viewed as a rental rather than a principal and interest amount.
Operating Lease
An operating lease is where the asset is rented for a set term and returned with no option for ownership. The payments that are made reflect a rental relationship, however unlike a finance lease it also covers agreed maintenance and administration costs. For example, if the operating lease was for an excavator it could include scheduled servicing within specific mileage each year. If you do not want to assume residual value risk and prefer to have all expenses wrapped into a single forecastable amount, this can be a great product for you.
Benefits of utilising equipment finance
Experienced business owners know that when the time comes to purchase equipment, they can preserve their working capital by utilising the businesses borrowing capacity. Choosing the right finance solution can also provide further benefits to your business. These include the following:
The purchased equipment can generate immediate business income
The fixed repayments can give you the ability to budget more accurately
The equipment secures the loan, in which case you don’t have to use your property
The business can consider numerous tax strategies based on the different types of finance
The term of the equipment finance should always be structured based on the lifecycle of the asset that is being purchased. We will work closely with your tax professional to structure the finance appropriately, this ensures that the repayments are matched with your taxation strategy.
What kind of equipment can be financed?
There are competitive equipment finance solutions available for both personal and business use. Equipment finance can be particularly useful for businesses that are looking to grow or operate more efficiently, if the equipment that you require will generate further income for your business it could be financed. Common items that can be financed include the following:
Trucks & Trailers
Agricultural, Construction & Mining Equipment
Manufacturing Equipment
Healthcare Equipment
Motor Vehicles
Other Equipment
Why choose My Finance Consultants?
We do all of the legwork
We compare hundreds of home loan options from a wide choice of lenders, including the big banks and specialist lenders. We handle every step, having a thorough process in place to qualify you with our lender panel to find the most suitable lending options for you. We organise all of the required paperwork, order lender valuations, liaise with your real estate agent and conveyancer for a smooth transition to settlement.
We provide a convenient service
Mortgage Brokers save you the time and hassle involved in applying for a home loan - from application through to settlement. We'll meet at a time and place that best suits you, to establish your needs and preferences. We then do all the research and running around to manage every step of the application process. This saves you shopping around - as we do it all on your behalf.
We provide professional advice
We are fully trained, and accredited with every lender we represent. We are full members of the Mortgage & Finance Association of Australia and we have many years of industry experience. We also have a number of consumer protection initiatives in place to protect you - our valued clients. As mortgage professionals, we seek to guide you through the lending process to help you make better financial decisions.
We help you select the right home loan
Our first priority is helping you select the home loan that’s right for you, now and into the future. Your Mortgage Broker will save you the time and hassle associated with shopping around for a home loan, they will also guide you through the home lending process to help you make better choices with your personal finances.
We will always try to save you money
We use comprehensive software which helps us pinpoint the most suitable and competitive home loan for you. Typically, our service can help cut the current interest rate you are paying as well as reduce your fees and monthly repayments. Using a Mortgage Broker is also a great way to figure out a strategy to maximise your borrowing power.
We don’t charge you a fee for our service
There is no charge to you for our services because the lender pays us a commission once your loan has settled. We do charge a commitment fee for home loan pre-approval applications, however we will refund this to you upon settlement of your home loan. We will always aim to provide a trusted, friendly and professional mortgage broking service.
Our clients have been saying some great things about us!
Whatever your goals, a competitive equipment loan will get you there faster!
We will make the process of financing your new business equipment a straight forward and fast process. Whether you're buying your first piece of equipment or upgrading to something bigger, we can help you make the right decisions and stay on top - whatever your equipment loan needs.
We'll compare more than 20 leading banks and lenders, as well as hundreds of equipment loan options to find one that's right for you. No matter what kind of equipment loan you're interested in, you'll enjoy expert lending advice from a Mortgage Broker you can trust.
Our industry knowledge and sophisticated software allows us to assess and compare the hundreds of equipment loans that are available in the marketplace, we will calculate your borrowing capacity and identify which lenders you will qualify with.
If you're ready to start your equipment loan journey, give our friendly team a call on 1300 381 955 or visit the Book Appointment section on our website.
FAQs
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If your business meets the ABN and GST requirements there isn’t a maximum loan amount. Equipment lenders will review your application on a case by case basis. For a smooth equipment finance experience, it is about choosing the lender who understands the asset you are purchasing as well as your business.
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Generally speaking, you will not have to pay a deposit if one or more of the following apply:
Your business has been in operation for more than 2 years
You are a homeowner
You have good credit history
You'll be more likely to qualify for a loan without a deposit if you’re purchasing new equipment. Each lender has strict guidelines about the loan to value ratio that they will allow.
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In the event of default, the lender will lodge the details of the default on your credit file. The lender’s registered interest gives them the right to repossess the equipment and have the first claim on the proceeds of the sale. Once the loan has been paid off, the registered interest is removed and this is what is known as a clear title.
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Yes. During the term of the secured equipment loan if you want to sell your equipment, prospective buyers can search the Personal Property Security Register and identify if there is a registered lender interest. This needs to be removed prior to the signing of registration papers by paying out the interested lender.
If it is a dealership trade-in they will be accustomed to paying out the lender directly. Although it is common practice, you may find private sale buyers are not comfortable with that. In that case, you might need to pay out the lender first, this could involve using your own savings.
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Depending on the equipment that you’re after and your businesses profile, there can be requirements in relation to the length of time your business has to be registered. The more specialised the equipment, the longer you will need to be registered.
As a general rule of thumb, your business will need to have an active ABN registration for at least 12 months. Your business will also need to be registered for GST. All lenders have different credit policies, there are specialist lenders who will even consider 1 day ABN registrations if you have been in the industry for 5 years.
To access the widest range of equipment loans, a 24 month ABN and GST registration is preferred. Ask your trusted Mortgage Broker if they have access to a lender that can help you!
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There are four tax implications when you purchase equipment in your business name, these include:
GST
Depreciation tax expense
Interest tax expense
Whole repayment expense
The distinguishing feature for what tax implications apply is who holds ownership and whether there is an intention to transfer ownership later on. We always recommend that you speak with your trusted accountant to obtain professional tax advice.
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All lenders will require the following documentation:
100 points of identification
Statement of assets & liabilities
If applicable, details of your ABN and GST registrations
If applicable, a rates notice to show proof of property ownership
Business owners that own property and have been in business for more than 24 months may be able to get their finance application approved without needing to provide any tax returns or financial statements.
If you don’t meet the above criteria, depending on the lenders self-employed credit policy, full documentation loans will likely require the following:
Last 2 years business tax returns & financial reports
Last 2 years individual tax returns & notice of assessments
Last 12 months ATO integrated client account and integrated tax account
If you don’t meet the above criteria, depending on the lenders self-employed credit policy, low documentation loans will likely require the following:
Latest BAS statement
Last 12 months ATO integrated client account and integrated tax account
Accountant certified declaration of income
Please note, this list is client dependent and will be tailored to your unique scenario.
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Yes. The equipment dealer is not a finance or credit expert, nor do they have access to the selection of lenders like we have - often equipment dealers will try to push their own finance products. We have access to over 20 different lenders, it is likely that we can get you a better deal. Borrowers need to keep in mind that the interest rate is not the biggest driver of cost. The ability to make extra repayments or payout the loan early can make a significant difference to what you actually pay overall.