WHAT IS EQUIPMENT FINANCE?

Equipment / asset finance works just like a regular loan, where the lender gives you funds to acquire an asset and then takes that asset as security in case you fail to repay the loan (just like a residential mortgage). 

There are different types of equipment finance depending how you acquire the assets. Under some of these arrangements, the lender becomes the owner of the equipment, and you are just ‘hiring’ or ‘leasing’ it from them for business purposes (even though you will select, purchase, pick-up, house and run the equipment!). In other cases, you are the owner of the equipment, but the lender uses the asset as security for the loan.

Who CAN BENEFIT FROM EQUIPMENT LOAN?

Purchasing equipment, even though it's integral to your business operation, can be expensive and can put a strain on your cash reserve. Equipment finance is a logical way to either cover the shortfall, or to preserve your cash flow.

 

Here are some of the benefits of equipment financing for business owners:

Improve your cash flow

A commercial loan can help ease up the strain on a business’s cash flow. You can also manage your budget more efficiently with a loan that comes with repayment plans that work for your business.

Kick-start your business

Knowing which finance option can bring you the best financial solution to help purchase the equipment you need to kickstart is essential.

This can also free up whatever cash you have to use in other areas in your business.

Get the latest tech

If you are in an industry that requires constant updating of your equipment you may find your budget buckling. There are finance options such as leasing that can let you update your equipment to the latest model with a low cost when compared to having to purchase equipment.

HOW DO I QUALIFY for ASSET FINANCE?

Eligibility criteria is dependent on the lender, type of equipment financing and your specific business. We can work with you to find the right lender and terms for your business, simply give us a call on 1800 807 620.

In most cases, you will be eligible if:

  • You're an Australian citizen or permanent resident

  • You have an ABN that is registered for GST

  • The equipment is to be used for business purposes

  • You have a decent credit rating

  • Your business has been registered for 12 months

WHEN SHOULD I APPLY for aN EQUIPMENT LOAN?

Twelve Grains Capital's specialists takes just minutes to understand your needs, from there you will need to provide us with the required documentation and we can work with the lender to get you funded as quickly as 1 business day.

why Twelve Grains capital ASSET FINANCE?

Whether you're starting or growing your business, Twelve Grains Capital can help finance the equipment to accelerate your business. Our solutions include:

  • Motor Vehicle Finance

  • Plant & Equipment Finance

  • Lo-Doc Car Loans

  • Hire Purchase / Lease

  • Chattel Mortgage

  • Novated Lease

  • Professional Asset Finance

  • Fit-Out Finance

 

Our specialists will ensure that whatever the changes may be, the best possible finance solution is tailored to you best meet those changes.

Talk to one of our specialists today to compare hundreds of asset finance options.

Selling your car? Click here.

Where to from here?

You've considered your options, and decided you're ready to apply for an asset finance. The next step is to get you qualified by following the link below. Don't worry, this won't appear on your credit report.

FAQ

How do you finance equipment?


There are different type of equipment financing: - Chattel mortgage; where the lender gives you cash to buy an asset and then takes that asset as security - Lease / hire-purchase agreement; This form of equipment finance is where a contract is drawn up to purchase a piece of equipment over time from a lender. Technically you don’t own the equipment while making the payments but you are entitled to use it during this ‘hire’ period. Then, when the last payment is made, ownership of the piece of equipment is transferred to you.




What is a good interest rate for equipment loan?


Equipment loan interest rates are typically between 3% and 30%. Where your rate will fall in that range depends on your credit score, business revenue and time in business, as well as the equipment you're financing.




How long can you finance used equipment?


Terms are typically 12–72 months and will vary by loan option and lender, as well as the age and what type of equipment being financed.




How hard is it to get an equipment loan?


Equipment loans are relatively easier and less onerous to obtain compared to housing loans. We can even consider 1-day old ABN applicant or those with really low credit score.




Who offers equipment financing?


There are a large number of Australian lenders offering equipment financing. These range from the big banks as well as other financial institutions. We work with over 70 lenders, so we can help you find the right lender for your business.