What It Includes
Equipment loans are available to Australian businesses across all sectors and industries and can be used to finance a range of plant, machinery and equipment purchases that are required for a business’ operations.
A business equipment loan can be used for:
- Vehicles, including vans, Utes and cars.
- Heavy duty vehicles, such as trucks, trailers, and buses
- Construction equipment, such as forklifts, excavators, front end loaders, etc.
- Agricultural machinery, including vehicles.
- Fitting out commercial, retail, or other business premises
- Purchasing or upgrading IT equipment and infrastructure
Equipment loans are generally secured loans, and most lenders will require your business to have a minimum turnover figure before they will consider writing a business vehicle or equipment loan.
Heavy vehicles
Your business can take out a loan to purchase heavy duty vehicles suitable for use in all types of industries. This includes finance for:
- Mining vehicles
- Trucks and trailers
- Construction vehicles
- Earthmoving equipment
- Agricultural and farm vehicles
Plant, equipment, and machinery
Plant and heavy machinery loans are designed to provide finance to a range of industries in order to develop operational capacity.
For instance, you can arrange a loan to purchase all types of plant and equipment for:
- Mining
- Energy
- Heavy industry
- Materials handling
- Construction
- Rail
- Aviation
In some cases, if you take out a chattel mortgage to purchase plant and other heavy machinery, you can borrow more than 100% of the cost to be able to fund training for staff, insurance, and other coast associated with the set up.
Premises fit outs
Businesses in a range of sectors can get financing to undertake a fit out of their premises. You can also get finance for retrofitting your existing premises or use a loan to re-locate to new business premises.
Refit finance is available for refurbishing all types of business premises, including:
- Commercial and office spaces
- Shops and retail outlets
- Cafes and restaurants
- Medical facilities
- Warehouses and factories
- Function and entertainment centre’s
The amount you are able to borrow will depend on the lender and your business’ specific circumstances (e.g., how long in business, turnover, etc.) You will usually be charged a set-up fee for the loan, and most agreements are available for up to five years.
In order to complete the purchase, you may be required to pay stamp duty (a state government tax), as well as conveyancer and/or solicitor fees.
In terms of additional, regular costs besides the repayments on your home loan, you might also decide to take out mortgage protection insurance, a form of personal insurance that covers you in case you default on your mortgage, and can cover the cost of your regular monthly repayments if you die, become seriously ill with a medical condition, or lose your job. This will add to your regular outgoings as well.
How to get vehicle and equipment finance
To get vehicle and equipment finance, you will usually require an ABN, and for the product to be intended primarily for business use.
You will generally be charged a set-up fee for a business machinery loan, and there can be additional charges under certain circumstances. These can include if you are buying the vehicle or equipment from someone without an ABN or who is not registered for GST. You may also be charged a fee if you want to make a change to the loan after it has been drawn down.
Once your loan has been approved, you are able to buy new or used vehicles and/or equipment, and you can make your purchase from a dealer, through private sale, or at auction.
How we can help
As business loan brokers, Finnciti can advise you on all aspects of business machinery and equipment finance.
In addition, with our experience in the industry we are able to connect you with the right lender to suit your needs and there by secure better rates and other benefits that the individual business owner may not be able to access.
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