Equipment financing from LoansOne makes Funding simple
Equipment loans are business finance implemented to purchase new machinery or equipment for upgrading the business and the technologies. You can use equipment funding for acquiring electronics, office fit-outs, vehicles and other latest business necessities. There are various types of equipment funding in Australia and include some conditions before getting approval for funding. If the borrower qualifies for equipment finance solution from LoansOne, they can purchase anything below for their business.
- Vehicles like a company car, trailers, motorcycles, trucks, delivery vans and more
- Machinery like excavator, forklift, lift and accessing equipment
- Construction machineries like various tools, scaffolding, and tools of trade
- Electronics like computers, GPS equipment and servers
- Technological equipment like printers, fax machines and 3D scanners
- Earthmoving machineries like yellow goods, front loaders, diggers and more
So in short, you can use equipment finance for:
- Funding any machinery or equipment related to business or company
- For purchasing any machinery
- Renting or leasing an equipment
- Covering various types of lease or loans, each with its drawbacks and benefits
Who will be Eligible for Equipment Funding?
If you meet the following criteria, you will be eligible for equipment loans.
- Have an ABN registered business or a company
- An organization should be GST registered
- Permanent residency or citizen of Australia
- Have been operating for at least six months
- Can offer all the bank statements for the business
A business owner will apply for equipment funding when they do not have enough security or cash flow to buy expensive machinery. You will also select this type of funds when:
- You require replacing machinery or equipment as it comes with a shorter life span.
- The companies are operating in an industry that needs continuously updated technology.
- You have to buy any equipment for daily use in business and reclaim the GST in the next cycle.
Interest rates for equipment financing from LoanOne
Since every business is unique, the need for a lease or loan will also vary. The interest rates of equipment funding vary on the business finance type you will select and apply for. The primary factor that we consider while implementing an interest rate to an equipment loan is the risk level involved in getting repayment from the borrower. The higher the threat of default, the higher will be the interest rates.
Usually, businesses who have been running the company in the industry for a long time, including regular high revenue, are less susceptible to payment default compared to someone new or just starting the company with no stable annual income. The interest rate of equipment financing is also dependent on the following:
- The amount the borrower wants to take
- Equipment type the borrower wants to buy
- Total business running time
- Business monthly revenue
- The total loan term the borrower is applying for
- The borrower’s company and personal credit score
- Interested in buying new or a second-hand equipment
How to enhance the chances of getting your loan approved from LoansOne?
We assess the borrowers loan application depending on the business monthly revenue, the use of the loan funds, and how the funding will help the business revenue in the future. However, below we have shared some tips to improve the chances for equipment loan approval.
- Demonstrating a capability for servicing the business lease or loan
- Meet all the eligibility criteria with an acceptable credit score.
- Meet the criteria of maximum debt and minimum turnover.
- Offering documents supporting the business profits and expenditures
- Submitting the balance sheet of the company
- Offering equipment details you want to buy
- Providing bank statements of the business account
Different Types of Equipment Loans
Take time to carefully consider how to use the cash flow from equipment financing, which will also assist you in determining which type of equipment loan will be perfect for you. There are numerous alternatives for the SMEs, thus allowing the borrower to secure the required machinery and equipment for their company. The different types of equipment loans are:
- Operating lease
- Hire purchase
- Financial lease
- Secured funding
Equipment funding will allow the borrower to finance different operations to take on new projects and expand the business. With the correct financing structure and planning, equipment loans are the best alternatives for growing the business.
Call us now on 1300 542 472 to learn more about the benefits of our equipment and vehicle finance loan options from LoansOne. Our local staff will be more than happy to answer all your enquiries, and hunt down the best deal. You may also reach out to us by sending a message through our Contact Us page, letting us know what you are wanting to buy, how much you wish to borrow, and how long for.
Frequently Asked Questions
Simply click on the “Apply Now” button to start your loan enquiry
The different types of vehicle and equipment finance are Chattel Mortgage, Hire purchase, Lease.
Once we have received a completed application along with supporting documents we will work on obtaining an approval through our lenders. We will liaise with the dealership/supplier to obtain a tax invoice for the equipment/vehicle and move forward to settlement.
The borrower is responsible for maintaining the equipment in good working order while under finance.
The interest rate varies depending on the Lender
At the end of the loan term if there is a loan secured against the asset, the charge will be removed and you will own the asset. If you have a rent option, in most cases you have the option to buy the asset or return it.