Equipment LOANS
For new and growing businesses, investing in machinery and equipment can be challenging. Many companies simply cannot afford to upgrade, replace, or purchase outright. Obtaining the most cutting-edge equipment, on the other hand, is essential for growth and success.
This is where equipment loans can help.
Benefits of an equipment loan
- You don’t have to pay a deposit to get the equipment you need.
- You will not be charged GST on the borrowing or the repayments.
- You own the equipment from the beginning of the loan.
- Interest on the repayment and depreciation are tax deductible.
Types of equipment financing
There are multiple options available to businesses to get the necessary equipment. These are some examples:
- Hire Purchase: When you purchase equipment through a hire purchase agreement, you make regular payments over a set period.
- Operating Lease: You can lease the equipment for as long as you need it, but it must be returned to the lessor at the end of the lease term.
- Financial Lease: This comes with a loan term. There is, however, only an offer to buy, regardless of the loan period. This implies that the purchase is neither guaranteed nor required.
What can be purchased with equipment loans
When it comes to equipment financing, you have several options available. Here are a few examples:
- Commercial vehicles
- Trades tools
- Office computers
- Heavy machinery
- Farming equipment
- Industrial washers
- Commercial ovens
- Medical equipment
- And more
Criteria for equipment financing
Some of the most common requirements for equipment financing are:
- You must be at least 18 years old.
- You must be an individual, sole proprietor, sole owner of your firm, or someone authorized to file for business finance and credit.
- The equipment for which you are looking for financing must be used by a company- entirely for business purpose
- The company must have been in operation for more than 12 months.
- The company must have a high credit rating
If you need equipment financing, get in touch with SB Experts.
Our mortgage experts will make sure that you get what you need. At SB Experts, all our Finance Managers are fully qualified, trained, and experienced mortgage experts.