Business Equipment Loans

Empower Your Business - Equipment Financing Made Easy

Applying for small business loans to purchase equipment for your business can seem complicated and you don’t know where to start. Choosing the right financing options can absolutely empower your business with the right guidance.

Why should you NOT pay cash?

To simply put, channeling cash into assets could deplete your working capital, limiting funds for operational needs or venturing into new growth prospects. Choosing a suitable equipment finance product on the other hand, will enable you to tailor repayments to align seamlessly with your cash flow. Additionally, there may be potential tax deductions available.

Different types of equipment loans cater to different situations. Here are some common options:

Equipment Loan

Opting for an equipment loan, also known as a chattel mortgage, proves to be a strategic means of financing business equipment acquisitions, particularly if owning the asset outright is a priority.

Businesses typically secure a loan covering the entire cost of the goods without the need for an upfront deposit, using the asset as collateral. Generally, the interest paid, along with the asset's depreciation, is tax-deductible, contingent upon the asset's business use.

The advantage of a vehicle or equipment loan lies in its ability to avoid tying up all available funds and often requires no additional security. This approach allows businesses to utilize existing cash and credit lines to generate income. Immediate ownership transfer occurs, and a goods mortgage is registered over the asset.

An equipment loan is adaptable to your business's cash flow, offering various repayment options. You can further customize the loan by reducing the amount and associated finance costs through equity contributions via deposits or trade-ins.

Finance Lease Arrangement

Opting for a finance lease arrangement provides access to the latest equipment and vehicles without an initial capital outlay.

Under this arrangement, your bank owns the asset and leases it to your business for a predetermined period. Lease payments, structured with a residual value, may be claimed as a tax deduction based on the asset's business use. The advantage of a residual value is evident in lower monthly payments, easing cash flow constraints. If eventual ownership is desired, an offer to purchase (plus GST) can be made.

Hire Purchase Agreement

For those aiming to own cutting-edge equipment and vehicles while preserving available cash, a hire purchase agreement is a fitting choice. In this arrangement, your bank acquires the necessary equipment and leases it to your business for an agreed-upon period.

Similar to an equipment loan, a hire purchase agreement avoids tying up available cash and generally requires no additional security. Depreciation of the asset and the interest portion of lease repayments may be tax-deductible, akin to the treatment under an equipment loan. It is advisable to seek independent tax advice for your specific situation.

Customized Financing Solution

At Investors Mortgage, we understand that no two businesses are alike. That's why we offer tailored financing solutions to meet your specific needs. Our Business Equipment Loans are versatile and can be adapted to various industries, including manufacturing, construction, healthcare, IT, agriculture, and more.

Our lending experts work closely with you to determine the loan amount, repayment terms, and interest rates that align with your business's characteristics. For example, understanding the timing and manner in which your equipment generates income plays a crucial role in determining the most suitable payment approach.

Additionally, it is advisable to evaluate the anticipated productive lifespan of an asset. This ensures that you do not find yourself concluding payments for an asset beyond its useful life or expediting payments for a piece of equipment, thereby alleviating undue stress on your cash flow.

Streamlined Application Process

We recognize that time is of the essence when it comes to acquiring business equipment.

Our application process is designed to be swift and straightforward. We aim to provide you with a quick decision, so you can get the equipment you need when you need it.

Our experienced team is ready to guide you through the application, ensuring you have all the necessary documents and information, and negotiate the best interest rate on your behalf. We aim to make the entire process as hassle-free as possible, so you can focus on what you do best – running your business.