GET A LOAN FOR YOUR EQUIPMENT PURCHASE

IN Australia

Get a loan for your equipment purchase in Australia with the skilled and experienced team from Your Finance Group. We have years of experience in helping our clients get the best deal. Contact us for a comprehensive consultation and see how we can support you.

ABOUT EQUIPMENT LOANS

You should get in touch with us to talk about your business ambitions, regardless of whether you need money for a new tractor or crane, a loan for computer system improvements, a fishing trawler for your business, or ant other equipment that needs money.

Additional overhead expenditures that must be considered in addition to the original purchase price include loan interest and fees, registration fees, insurance premiums and recurring expenses.

Buyers must take into account the whole cost of the asset or piece of equipment, as well as how it will affect the cash flow of the company.

Be careful when acquiring an equipment loan as an incorrect loan can bring long-term financial harm.

Interest Rates And Charges

Fixed or variable interest rates are available for equipment loans. The two pricing options both have benefits and drawbacks. An equipment loan’s interest and loan costs can be rather high, so a buyer must be careful to select a financing option with low rates and minimal fees.

Always pay close attention to the costs and charges related to the equipment loan under consideration.

Pay close attention to any loan establishment fees levied by the lender and, in particular, the person handling the loan arrangements. Sometimes, for the same transaction, these institution fees might range from $350 to $1,250 or even more.

Budget – Can You Afford The Repayments?

Buyers should consider financing when looking to purchase equipment, automobiles, or both. Here are the general questions to ask:

How much money will I need to expand my company?
When should I smooth out my cash flow’s hiccups?
How does asset financing affect taxes?
Will I need to upgrade the equipment and for how long?
Is my industry experiencing a fast change in technology?
Should I finance my asset to own it or finance it to be returned?

A buyer must evaluate how much they can afford to pay in loan repayments before choosing the equipment to buy. If they decide they can afford $20,000, they need to stay within that range and resist any pressure from others to raise it.

Buyers will need to prepare a budget ahead of applying for a loan. This will be a requirement of any lender.

Things to watch out for:

Contrary to residential loans, it is difficult to evaluate equipment loans based just on interest rates.

There are fixed and variable tariffs. Some loans include monthly fees, while others don’t. The buyer must concentrate on the number of repayments multiplied by the number of repayments necessary, Plus add the final balloon payment (if applicable), in order to compare equipment loans’ true costs. Be careful since a loan product with a little higher rate can also have fewer fees and cost less over the course of the loan.

Get in touch with our experts if you need any further details or help.

TYPES OF EQUIPMENT LOANS

There are many different kinds of loans for assets or equipment.

First, there are loans for both new and secondhand equipment, which often have various fees and interest rates. These loans range from secured to unsecured options. Additionally, some loans for equipment have fixed rates, while others have variable rates.

Generally speaking, asset finance options include, but not limited to:

You might want to consult your accountant or tax expert while weighing your alternatives because each of the loan types is appropriate in a variety of business situations.

Some of these products also have what are known as ‘Balloon’ options, which require a sizable portion of the loan (between 30% and 50% of the car’s value) to be paid back in one lump sum at the conclusion of the loan period. Avoid ‘Balloon’ possibilities and carefully consider the long-term financial effects of a delayed payback.

Our experienced team can help you get the best loan based on your needs, budget and business goals. Get in touch with our team to learn more about your options.

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 is very straight forward. We require;

There are a few more product selections available for corporate usage, but otherwise the criteria are the same as for personal use, with the exception that a bit more information about the business budget is needed. For individuals who lack a history of business trade numbers and have not been in operation for very long, we do have access to products.

Budget

Lenders are required by law to determine if the firm can afford the repayments for the new asset or equipment, as was discussed in the section on equipment loans.

Company management should never take the chance of letting a third party construct the budget since they almost always get the numbers wrong, especially for company budgets.

Security

As security for the loan is frequently required by lenders, in the event that the buyer defaults on the repayment of the equipment loan, the equipment securing this loan may be confiscated and sold to satisfy the debt.

Credit History

These days, all lenders evaluate customers’ credit histories to look at their prior borrowing behaviour.

Any mentioned defaults will frequently result in an immediate decline. Before buying any equipment, get in touch with us to address your past financial issues if you are aware of them.

PREPARING A BUDGET

Preparing a budget or cashflow of income and expenses is now an essential part in any loan proposal.

To do this, lenders will seek a budget or cashflow of income and expenses.

Lenders may compare the budget or cashflow supplied to industry standard figures or the lender has their own minimum expenses tables for the type of borrower. If there are large variances between the applicant or business and industry standards, the lender may question the budget or cashflow supplied.

For more detailed analysis of how much can you afford contact our team at YFG today.

OUR SPECIALIST TEAM

Focus

Our Vehicle and Equipment Finance Team focus on the equipment and asset finance needs of our clients.

The advantage of our team is that we have multiple sources of funding from many lenders, not just one lender as can be the situation at many other retail outlets finance writers.

Team Members

Our staff has specialised training and expertise in lending assets and equipment services. Additionally, we have advanced software that facilitates quick requirements analysis and product pricing estimates, allowing customers to efficiently select their chosen lender and product.

Whatever your equipment or asset finance needs are, we can assist you find the right fit.