At Lead Advisory Group, we believe that asset and equipment financing should be a seamless process that helps to elevate your business potential. Our aim is to assist you in navigating the equipment finance landscape, providing straightforward, reliable guidance that ensures you secure the best deal possible. With our local Bendigo expertise, we're not just brokers, but trusted advisors committed to your business success.
We're a Bendigo-based mortgage broker, specialising in business loans and commercial equipment finance. Our emphasis on one-to-one relationships allows us to create tailor-made services suited to your unique business needs. With Lead Advisory Group, you get the benefit of local advice underpinned by extensive specialist expertise.
Any asset, plant or equipment that can help generate income for your business may be able to be financed, which may include:
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 needs.
The 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.
We will tailor an equipment finance solution to your specific circumstances, helping you to decide what is the best type of commercial loan to suit your business situation and goals.
Leasing allows businesses to use the latest equipment without the upfront cost. It’s an excellent way to maintain cash flow while benefiting from cutting-edge technology.
In a 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.
It is 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.
Commercial Hire Purchase offers the opportunity to own the equipment after the final payment. This is a great way to finance machinery while spreading the cost over time.
A Chattel Mortgage enables you to take ownership of the equipment immediately while paying it off through scheduled instalments.
In this scenario, 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.
Again, it is 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.
Low Doc Equipment Finance is an accessible option for businesses unable to provide full financial documentation. We make it fast and easy, helping you get back to business. Speak to our team about options when you are in need of a low-documentation solution.
Starting or expanding a business can be both an exciting and challenging journey. At Lead Advisory Group, we're here to help you find the best equipment finance deal to match your needs.
Contact us today to take advantage of our local Bendigo expertise and tailor-made services that are designed to make your business equipment finance process as simple and stress-free as possible.
Find answers to your queries about equipment finance in our FAQs section below. We've compiled a list of the most common questions that can help provide a more comprehensive understanding of commercial equipment finance.
Note: the following should be considered general advice. Speak to your financial advisor for specific advice tailored to your circumstances.
Commercial equipment financing is a type of loan or lease arrangement that enables businesses to obtain essential equipment without paying the full cost upfront. This form of financing can cover a wide range of items, from heavy machinery and vehicles to technology and office equipment. Businesses can then repay the loan or lease over an agreed period, allowing them to manage their cash flow more effectively.
A wide array of equipment can be financed under commercial equipment financing. This includes, but isn't limited to, vehicles, construction machinery, manufacturing equipment, medical equipment, office furniture, computer hardware and software, farming tools, restaurant equipment, and much more. If it's a piece of equipment that your business requires to function, it's likely that it can be financed.
Equipment financing is typically available to a wide range of businesses, from start-ups to established companies. The key eligibility criteria often include having a registered Australian business, a good credit history, and the ability to demonstrate repayment capacity. However, some lenders may have additional requirements or offer specialist services like low doc equipment finance for those who can't provide full financial documentation.
In Australia, equipment financing typically involves either a loan, where you purchase and own the equipment outright and repay the loan over time, or a lease, where you pay to use the equipment for a set period. The specifics can vary, with options such as chattel mortgage, hire purchase, or finance lease, each having its own implications for ownership, repayment terms, and tax treatment.
Equipment financing offers numerous benefits like improved cash flow management, access to the latest equipment, potential tax benefits, and the ability to spread costs over time. However, there are also potential drawbacks, including the total cost may be higher than outright purchase, the risk of owning obsolete equipment, and commitments to long-term contracts even if the equipment is no longer needed.
Equipment financing can have significant tax and accounting implications. Lease payments are typically tax-deductible as operating expenses, while loans may allow for deductions on interest payments and depreciation. It's crucial for businesses to consult with a financial advisor or accountant to understand the full tax implications based on their specific situation and the Australian tax laws.
Interest rates for equipment financing in Australia can vary based on factors like the lender, the applicant's creditworthiness, the type and age of the equipment, and the terms of the agreement. Rates can range widely, so it's essential to shop around or work with an experienced broker to secure the best deal.
Equipment financing agreements typically detail the loan or lease amount, the repayment schedule, the interest rate, terms around maintenance and repair, and conditions for early termination or purchase. The specifics can differ widely, and it's important to understand all terms before entering an agreement.
At the end of a lease or finance agreement, you may have several options depending on the type of agreement. You might be able to purchase the equipment for its residual value, return the equipment, or renew the lease. For loans or chattel mortgages where you own the equipment, the end of repayments means you no longer have financial obligations on that equipment.
Alternatives to equipment financing include outright purchase, equipment rental, and leasing. An outright purchase offers immediate ownership but needs substantial upfront capital. Equipment rental provides temporary usage for a periodic fee, and leasing often includes an option to purchase at the end of the term. The best option depends on your business's specific financial situation and equipment needs.
To apply for equipment financing, first identify the type and amount of financing needed (we can help with this!). Then, prepare key business documents like financial reports and a business plan. Check your business credit score, choose a suitable lender, and submit your application. Approval times can vary between lenders. Always understand the unique requirements and processes before applying.
Before applying for equipment financing, review your business's financial health and future needs. Ensure your cash flow can handle repayments and understand the total cost of the loan. Consider the equipment's lifespan and depreciation rate, and be aware of potential tax deductions. Finally, carefully read the finance agreement to avoid hidden clauses or penalties. It can be beneficial to consult a financial advisor or equipment finance broker.
If you have more questions, please don't hesitate to reach out to our friendly team of experienced mortgage brokers. We'd love to hear from you and do our best to answer your questions.
Discover local, expert solutions for your business equipment finance needs. Lead Advisory Group simplifies asset and equipment financing, offering tailor-made, trustworthy advice right in Bendigo.
