Understanding Asset Finance for Office Furniture
When your Melbourne business needs new office furniture, the upfront costs can put significant pressure on your cash flow. Whether you're setting up a new workspace, expanding your team, or upgrading existing equipment, Asset Finance offers a practical solution that allows you to acquire the furniture you need while preserving your working capital.
Asset Finance is a lending solution where the equipment or furniture you purchase serves as collateral for the loan. This arrangement typically results in more favourable interest rate terms compared to unsecured business loans, making it an attractive option for businesses looking to invest in office equipment.
Types of Asset Finance Options Available
Embark Financial can access Asset Finance options from banks and lenders across Australia, providing you with multiple pathways to fund your office furniture purchases:
- Chattel Mortgage: You own the furniture from day one while making fixed monthly repayments over an agreed term
- Hire Purchase: The lender owns the equipment until the final payment, when ownership transfers to you
- Operating Lease: Lower monthly payments with options to upgrade or return furniture at lease end
- Finance Lease: Fixed payments for the life of the lease with potential residual value benefits
Benefits of Using Asset Finance for Office Equipment
Choosing Asset Finance for your office furniture purchases offers several advantages that can support your business growth:
Preserve Cash Flow: Instead of depleting your business savings, you can manage cashflow more effectively with structured repayments spread over time.
Tax Benefits: Depending on your chosen finance structure, you may be eligible for tax deductions on interest payments and depreciation.
Flexible Terms: Loan options can be tailored to match your business needs, with terms typically ranging from 12 months to seven years.
Quick Access to Equipment: A streamlined application process means you can acquire necessary furniture without lengthy delays.
Predictable Budgeting: Fixed monthly repayments help you plan your business expenses more accurately.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Embark Financial today.
What Office Equipment Qualifies for Asset Finance?
Asset Finance isn't limited to basic desks and chairs. You can finance a comprehensive range of office equipment including:
• Executive and staff desks
• Ergonomic office chairs
• Conference room tables and seating
• Reception area furniture
• Storage solutions and filing systems
• Kitchen and break room furniture
• Specialised workstations
• Audio-visual equipment and mounting systems
While Asset Finance commonly covers work vehicles, specialised machinery like excavators, tractors, graders, cranes, and dozers, it's equally effective for office equipment purchases.
The Application Process Explained
Applying for Asset Finance through Embark Financial involves several straightforward steps:
- Initial Consultation: Discuss your furniture requirements and budget with our finance specialists
- Documentation: Provide necessary business financial information and equipment quotes
- Lender Selection: We'll identify suitable lenders from our network across Australia
- Application Submission: Complete the formal application with your chosen finance option
- Approval and Settlement: Once approved, arrange delivery and installation of your new furniture
The loan amount you can access depends on factors including your business's financial position, credit history, and the value of the furniture being purchased.
Choosing the Right Finance Structure
Selecting between different finance options depends on your specific business circumstances:
Chattel Mortgage suits businesses wanting immediate ownership and potential tax benefits through depreciation claims.
Hire Purchase works well for businesses preferring lower initial costs with ownership transferring after final payment.
Leasing Options provide flexibility for businesses that prefer to upgrade furniture regularly or want lower monthly commitments.
Interest Rates and Costs
Interest rates for Asset Finance vary based on several factors including loan amount, term length, your business's credit profile, and current market conditions. As mortgage brokers, Embark Financial can compare rates across multiple lenders to find competitive options suited to your Melbourne business.
Additional costs may include establishment fees, documentation charges, and ongoing account management fees. We'll provide transparent information about all costs involved before you commit to any finance arrangement.
When buying new equipment or upgrading existing equipment, it's important to factor these costs into your overall budget planning.
Making Your Decision
Asset Finance offers Melbourne businesses a practical approach to acquiring necessary office furniture without compromising cash flow. Whether you're purchasing a single executive desk or fitting out an entire office space, the right finance structure can support your business objectives while maintaining financial flexibility.
Commercial equipment finance extends beyond office furniture to include factory machinery, trucks, trailers, and other business assets, making it a versatile solution for diverse business needs.
Call one of our team or book an appointment at a time that works for you to discuss how Asset Finance can support your office furniture requirements.
