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What's Involved – Equipment Loans

When determining what is involved in applying for equipment loans, the primary purpose of the equipment or asset needs to be determined;

  • Personal use
  • Business use

Personal use is very straight forward. We require

  • copy of your last 2 payslips;
  • identification (passport and drivers license);
  • list of your assets and liabilities; and
  • a budget of your living expenditure to determine your purchase fits within your budget.

We can then identify the products and rates available to you for your selection. All this can be done fairly quickly within a 48 hour turnaround.

Business use has a few more options available regarding products, but there are similar requirements as with personal use, except there is a little more detail required on the business budget.

We do have access to products for those who lack history of business trading figures and have not been running long.

Contact us to discuss what product are suitable for your needs.

Please note, the less documentation provided to the lender about a business, the higher the interest rate they will charge.

An insurance cover will always be required prior to delivery of your equipment.

Budget

As mentioned in Need a Loan - Equipment Loans there is a legislative need to prove to any lender the business can afford the repayments for the new equipment or asset.

Business management should never risk allowing a third party individual to prepare the budget, as most often they will be wrong in the figures, especially with business budgets.

Buyers should prepare the budget for the lender ahead of applying for a loan and seek assistance from the ASIC web site Budget Planner if necessary.

Security

Often lenders will require security for the loan, so in the event that the buyer default on the equipment loan repayment, the equipment securing this loan can be seized and sold to repay the debt.

Credit History

All lenders now undertake a credit check of borrowers to look at past credit history and a borrowing pattern.

Any recorded defaults listed will often lead to an immediate decline. If you are aware of previous financial problems, contact us prior to the purchase of any vehicle to discuss your previous financial

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