Understanding Equipment Finance for Your Business
For Melbourne businesses looking to expand operations or upgrade their capabilities, buying new equipment represents a significant investment. Whether you need office equipment, work vehicles, or specialised machinery, equipment finance provides a structured pathway to acquire essential assets without depleting your working capital.
Equipment finance allows businesses to spread the cost of expensive purchases over time through fixed monthly repayments. This approach enables you to access Equipment Finance options from banks and lenders across Australia, ensuring you can find suitable loan options that align with your business needs.
Types of Equipment You Can Finance
Most lenders offer comprehensive commercial equipment finance solutions covering a wide range of assets:
• Construction and Heavy Machinery: Excavators, tractors, graders, cranes, and dozers
• Transport Equipment: Trucks, trailers, and commercial vehicles
• Factory Machinery: Manufacturing equipment and production line components
• Office Equipment: Technology systems, furniture, and administrative tools
• Specialised Industry Equipment: Sector-specific machinery tailored to your business requirements
Popular Equipment Finance Structures
Chattel Mortgage
Under a chattel mortgage arrangement, your business owns the equipment immediately while using it as collateral for the loan. This structure often provides tax advantages, as you may claim depreciation and interest as business expenses. The vehicle or equipment serves as security, typically resulting in more favourable interest rate terms.
Hire Purchase
With hire purchase agreements, you make regular payments throughout the life of the lease before taking ownership at the conclusion. This option suits businesses preferring lower upfront costs and predictable payment schedules.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Embark Financial today.
The Application Process
When applying for equipment finance, lenders typically evaluate several factors to determine your loan amount and interest rate:
• Your business's financial position and trading history
• The type and value of equipment being financed
• Your ability to service the proposed repayments
• The equipment's suitability as collateral
Most finance providers offer a streamlined application process, requiring standard business documentation such as financial statements, tax returns, and equipment quotations.
Managing Your Equipment Investment
Upgrading existing equipment through finance arrangements allows businesses to maintain operational efficiency while spreading costs over manageable timeframes. This approach proves particularly valuable when:
• Your current equipment requires frequent repairs
• New technology offers significant productivity improvements
• Business growth demands increased capacity
• Tax planning considerations favour structured asset acquisition
Cashflow Considerations
Equipment finance helps businesses manage cashflow by converting large capital expenditures into predictable monthly expenses. This approach preserves working capital for operational requirements while ensuring access to necessary equipment.
Fixed monthly repayments provide budgeting certainty, allowing you to plan other business investments and expenses with confidence. The structured approach also enables you to match equipment costs with the revenue those assets generate.
Working with Finance Professionals
Engaging experienced mortgage and finance brokers can provide access to multiple lenders and finance options simultaneously. Professional brokers understand the nuances of different lending criteria and can identify solutions that match your specific business needs and circumstances.
At Embark Financial, our team works with businesses across Melbourne to identify appropriate equipment finance solutions. We assess your requirements, compare available loan options, and guide you through the application process from initial enquiry to settlement.
Equipment finance represents a strategic tool for business growth and operational efficiency. By spreading equipment costs over time, you can access essential assets while maintaining financial flexibility for other business priorities.
Ready to explore equipment finance options for your Melbourne business? Call one of our team or book an appointment at a time that works for you.
