Icon - Who we are

Equipment Loans

Equipment Loans

We have a dedicated team for equipment financing. This is what they do and do well. They are on your side and can assist in getting great rates and competitive payment terms.

With a fast approval process, 100% Finance options available, our team can ensure your equipment or asset purchase is delivered in a timely manner without impacting on your cash flow.

Whether you're looking for finance for that new tractor or crane, need a loan for computer hardware upgrades, want to buy a fishing trawler or solar panels for your business or perhaps you have another idea that requires funds you need to contact us to discuss your plans.

Apart from the initial purchase price, there are many more expenses that must be taken into consideration such as, interest and fees on the loan, registration fees, insurance costs and ongoing costs.

Buyers need to consider how much the equipment or asset will cost overall, including the impact on the business cash flow.

Beware, getting the wrong car loan at the start can be financially damaging to buyers in the long term.

Types of Equipment Loans

The number of types of equipment or asset loans is quite diverse.

Firstly, there are loans for new as well as used equipment, each normally come with different interest rates and charges. Some of these loans can be secured or unsecured. Also some equipment loans have a fixed rate while others have a variable rate.

Generally speaking, asset finance options include: Commercial Hire Purchases; Financial and Operating Leases; Chattel Mortgages; Novated Leases; and Technology Rentals. Each is suited to different commercial circumstances, so when considering your options, you may want to talk to your accountant or tax advisor.

Some of these products even come with what is termed "Balloon" options which is a large amount of the loan (from 30% to 50% of the car value) that has to be paid in one payment at the end of the loan period. Beware of "Balloon" options, look deeply into the long term financial impact of such a delayed repayment.

Types of finance we can help you with.

Cars Trucks 4x4 and Utes Buses Tractors
Taxis Forklifts Scissor Lifts Mowers Bulldozers
Tankers Backhoes Cranes Mulchers Wood chippers
Welders Pumps Diggers Tippers Bobcats
Container lifts Forestry equip, Printing equip. Engineering equip. Skid Steer leaders
Mining equip Workshop equip Office equip Dental equip Medical equip
Solar power Solar panel Solar water heating Prime movers Agri equip
Boats Caravans Planes Generators Cement mixers

 

Confused? Then you need to contact us so our team can help you find a deal that suits your needs.

Interest Rates and Charges

Equipment loans come with either a fixed or variable interest rate. There are advantages and disadvantages with either rate option. The cost of interest and loan fees on an equipment loan can be quite hefty so a buyer needs to ensure they are choosing a finance deal that has a low rate and low fees.

Always closely focus on the charges and fees associated with the equipment loan being considered. Importantly look at any loan establishment charges by the lender and in particular the individual who is arranging the loan. At times these establishment charges can vary from $350 to $1,250 or even more, for the same deal!

Budget - Can You Afford the Repayments

When considering finance to buy vehicles or equipment or vehicles, buyers should ask themselves;

  • how much capital do I need to grow my business?
  • when do I need to smooth the bumps in my cash flow?
  • what are the tax outcomes of asset financing?
  • how long will I need the equipment and will I need to upgrade it?
  • is technology rapidly changing in my industry?
  • do I want to 'finance to own' or 'finance to return' my asset?

Before a buyer decides on the equipment to purchase, they need to determine what they can afford the loan repayments. If they determine they can afford $20,000, they need to stick to that limit and not be pressured by anyone else to go higher.
Buyers will need to prepare a budget ahead of applying for a loan. This will be a requirement of any lender.

For assistance in setting a budget, check out ASIC's site Budget Planner.

Things to Watch For

Unlike a home loan, you cannot easily compare equipment loans based on the interest rate alone. Some rates are fixed, some variable. Some loans come with monthly charges, some don’t. To accurately compare the actual costs of a car loan, the buyer needs to focus on the amount of repayments multiplied by the number of repayments required, PLUS add the final balloon payment (if applicable). Be cautious as a loan product that has a slightly higher rate may come with lower fees and be cheaper during the term of the loan.

For more information check ASIC's site – Business Loans 

Contact us

Find a YFG Broker