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
Professional Asset 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.
What is the definition of private lending / private lender?Private lenders are typically high net-worth individuals who are seeking better returns on their investments by lending to businesses either directly or via a pooled mortgage funds (syndication). The lending is commonly secured against real-estate assets with loan terms from 3 months to 3 years.
How does private lending / private lender work?Loans from private lenders work just like any other type of loans. The funding is secured against real-estate assets to allow you to purchase properties, develop or construct new buildings, assist with your business' cash flow, pay invoices, etc. You may choose to make repayments in instalments or lump sum by the end of the term. The only difference with loans from banks or credit union is that the funds come from private investors and not members. This allows settlement to be fast tracked as the decisions are based on the individual's risk appetite.
What are private lending rates like? How much do private lenders charge?Private lending rates are typically higher than traditional lenders. It could range from as low as 4.99% to over 20% per annum. Rates are commonly interest-only where borrowers can choose to pay in instalments or pre-paid for the life of the loan.
Is private lending legal?Yes! It's perfectly normal to feel sceptical for something that is not "traditional" or sometimes misunderstood. Private lending is regulated by Australian government, and depending on the type of lending or investment services they provide, different lenders could carry different licences. Always do your research and ask questions before deciding that any financial product might be right for you.
What is peer-to-peer lending?Peer-to-peer (P2P) lending matches people looking to invest and people looking for loans. This allows individuals or businesses borrow money from an investor instead of going through a bank or credit union. When you're investing via a P2P platform, you're buying a financial product, this is typically a managed fund.