Equipment Finance
Business Equipment Finance & Cash Flow Finance
Business equipment finance is a vital tool for many businesses seeking to upgrade their capabilities.
There are many reasons a business might need a commercial equipment loan or lease. As a commercial business loans broker we can assist with many business needs, including;
- Finance for purchase of new office equipment.
- Machinery plant finance.
- Business cash flow finance.
- Leasing of new equipment.
- Business upgrade finance.
- In many cases we can arrange finance for second hand purchases also.
Come and speak with us about any of your business equipment financing needs.
Types of Equipment Leases and Mortgages
There are various types of business equipment finance. If you are not sure which is best, it is worthwhile having a chat with your accountant first.
Asset Lease
Under Asset Lease the financier (the lender) purchases the equipment on behalf of the business. The business then makes a fixed monthly lease rental for the term of the lease.
Repayments for the asset lease can be chosen to pay out the full value of the equipment, or to have a partial amount remaining to pay at the end (called the “residual”).
At the end of the lease term the business can;
- pay out of the residual and take ownership of the equipment, or;
- sell the equipment and pay the residual, or;
- refinance the residual and continue the lease.
Chattel Mortgage
Commercial Hire Purchase
Under this arrangement the financier purchases the equipment on behalf of the business. The business then hires it back from the lender over a nominated period. The business retains the use of the equipment for the term of the contract, but does not own the equipment.
At the end of the contract term, after the total price of the equipment, less any residual, and interest charges have been paid in full, the business takes ownership of the equipment.
Please contact us for a discussion about your personal situation and finance options.