Equipment Finance: Secure Machinery Your Business Needs

Summary:

This guide explains how businesses can secure the right equipment finance to grow, outlining practical funding options and how to improve approval outcomes.

• Equipment can often be used as security, with specialist lenders offering flexible solutions beyond the big banks.
• Approval is strengthened by steady income, a strong credit score, and, where possible, a deposit to reduce lender risk.
• Common finance options include chattel mortgages, equipment leases, and hire purchase, each suited to different cash flow and ownership needs.

Getting the right equipment and machinery for your business is crucial for growth. You know your business needs new tools to help it thrive, and securing the necessary funding is a key step. It’s a common need for businesses looking to expand their capabilities.

At Fox Finance Group, we understand these challenges. We’re here to be your guide, to show you how to navigate the world of equipment finance so you can get what you need for your business.

Why Your Business Needs Equipment:

For many businesses, new or better equipment isn’t just nice to have; it’s something you absolutely need. Whether you’re in the farming and agriculture industry and need a new tractor, running a delivery service and need a new van, or in the mining and construction industry and need a new wheel loader, having the equipment and machinery you need is important, as it will ultimately help your business grow.

Finding Ways to Get Business Equipment Financing:

So, you might be asking yourself, how do I get the equipment finance I need? It might seem tricky, but with the right guidance, you can make it happen. Here are some key ideas that can help:

• Using the Equipment as Security: This is often a straightforward path. Lenders assess the value of the equipment you want to purchase. If that equipment is valuable, it significantly strengthens your application.
• Specialised Lenders: Don’t just think about the big banks. There are many other lenders who focus on helping businesses with business equipment finance. With our access to 50-plus lenders on our panel, we will be able to find the perfect lender for your unique situation to make sure you are getting the best deal possible for your equipment financing.
• Showing You Can Pay Back: Showing that your business brings in steady income can help. Lenders want to see you can afford to make the payments, and when they can see consistent income, it will increase their confidence and your chances.
• Deposit: If able, sometimes putting down a deposit can also help your lender lower their risk and improve your chances of getting approved. Having a deposit shows you’re serious and reduces the loan amount, making it an easier deal for the lender.

If saving for a deposit is something you want to start, Moneysmart can help with their article ‘How to Do a Budget’, where they provide easy steps for you to plan and manage how you spend your money.

Understanding Different Finance Products:

When looking at business equipment finance, it’s not a one-size-fits-all situation. Common types of equipment finance include:

• Chattel Mortgage: You own the equipment from day one. The lender puts a ‘mortgage’ on it until you pay off your loan. This can have benefits when it comes to tax time.
• Equipment Lease: You basically ‘rent’ the equipment for a set time. At the end of that time, you might be able to buy it, get newer equipment, or give it back. This is good for managing your cash flow and keeping up with new technology.
• Hire Purchases: This is similar to a lease but with the idea that you’ll buy it. You make regular payments and fully own the equipment after your last payment. Hire purchase usually includes a balloon payment (a larger final payment) at the end of your loan term.

These are just some of the ways you can secure the equipment finance you need. Don’t stress though, because you’ll have your own dedicated lending specialist who will be able to walk you through everything to make sure you are getting finance that works best for your needs.

Get the Equipment Your Business Needs:

Don’t let anything hold your business back from getting the essential equipment and machinery your business needs to succeed.

Get started now! You’ve got nothing to lose and a world of business potential to gain!