Getting business equipment financing is one of the best solutions if you need funds to support your business growth. But do you know how to apply for this type of business loan?
How does business equipment financing work?
Many small businesses need specific equipment to run their company. However, most of the time they do not have enough money to purchase the tools they need. Equipment financing is a loan option used to buy equipment for a business. This is the best option if you are looking to purchase new machinery, vehicles, tools or any other vital equipment for your company. This type of loan also funds other heavy equipment that your business may need to produce goods or services (industrial machinery, commercial kitchens, etc.).
How Lending Connect can help with your equipment loan
Lending Connect offers equipment finance for small businesses in Australia. Moreover, our one to one approach allows you to get the money in your bank account within 1 day from the approval. With our network of more than 50 business loan providers, we have opportunities for every type of business.
Thanks to our experienced consultants, we help you through the process and we find the best lender that can offer the right deal for your needs.
There are different types of equipment finance available in the market. Here the most common financing options:
- Chattel mortgage: a loan to purchase a car or piece of equipment, which is then used as security against the loan.
- Secured loan agreement: lenders have more certainty that their loan will be repaid, even when the borrower defaults on their loan.
- Commercial hire purchase: with this type of finance you can hire the vehicle from the lender for a fixed monthly repayment over a set period.
- Finance lease or capital lease: a type of option in which the finance company is typically the legal owner of the asset for the duration of the lease,
- Operating lease: at the end of the lease period the asset can return to the lessor without any further obligation.
- Rental agreement: at the conclusion of the rental agreement, the lender retains ownership of the equipment.
Advantages of our equipment financing options
Equipment loans or asset finance is a business loan with fix term, and these are some of the benefits:
- Up to $2 million
- Long term up to 5 years
- Low interest rate
- Available for machinery, vehicles, etc.
- Loan secured against equipment/asset purchased
- You can buy new and used items available at different interest rates
- Repayments can be tax deducted
- Schedule long term repayments
- Long term repayments usually suit the business cash flow
- No deposit payment
- Personalised solutions to suit your business
Do you need more information before applying for an asset finance?
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