ASSET & EQUIPMENT FINANCE

It’s a common question for small business owners; how do you get your hands on the equipment you need to grow, while still keeping the all-important cash flow and working capital at healthy levels?

 

Choosing the right asset and equipment finance can give you further benefits than just preserving your day-to-day funds:

 

  • Assets and equipment can generate immediate income

  • Finance can help preserve working capital

  • Fixed repayments may give you the ability to budget more accurately

  • The asset secures the loan, in which case you don’t have to lock up your property security which can be preserved for future finance such as working capital

  • There may be potential tax advantages to consider
     

What can be financed?


Any asset, plant or equipment that can help generate income for your business may be able to be financed, and can include:

 

  • Motor vehicles

  • Commercial vehicles

  • Plant and machinery

  • Agricultural equipment

  • Solar power equipment

  • Computers, photocopiers and phone systems

  • Medical and dental equipment

  • Office equipment

  • General business equipment

  • Internal fit-outs
     

What types of asset and equipment finance are there?


There are many different financial products available - some more popular than others, and it’s important to discuss with your professional advisers, such as your accountant, which product may be most appropriate for your business needsThe options include Commercial Hire Purchase, Chattel Mortgage, Finance Lease, and Operating Lease – and we can help you evaluate the key benefits and differences for each product.
  

Chattel Mortgage

The asset belongs to you from the beginning and the lender has a ‘charge’ over the asset that secures the loan until the final payment has been made. Because the borrower holds title to the goods there may be taxation benefits. So it’s important to get the right advice from an appropriate professional adviser, such as an accountant, as to whether this finance would work for you and your business.

Car Dealership

Finance Lease

The lender (lessor) purchases the equipment outright. The borrower (lessee) gets to use the equipment for the term of the lease in return for lease/rental payments. Under a finance lease the borrower (lessee) traditionally doesn’t need to outlay any working capital and may also be eligible to claim a tax deduction. You should consult your tax adviser about potential tax deductions when considering a finance lease. And, as we said above, do get the right advice from an appropriate professional adviser, such as an accountant, as to whether this finance would work for you and your business.

White Pickup Truck