Business loans Solutions

I need a vehicle, machinery or equipment

What are my options?

You’ve got a number of choices if you need vehicles, machinery or equipment. You can:

• Purchase the asset using your own funds
• Borrow to purchase
• Lease or commercial hire purchase.

I want to purchase with cash

If you’ve got spare cash you could buy the asset outright with no extra costs. In this case you may be able to claim depreciation on the asset, although you’d need to confirm this with your accountant.

However, before you spend your own money, consider the impact a large up front cost could have on your cash flow and if you might need the cash for something else.

I want to borrow to purchase

You could borrow to purchase the asset. This can provide access to a competitive interest rate and result in lower repayment amounts over the term, helping with your business cash flow.

The other consideration of this option is that security may not be taken over the asset but over your residential or commercial property. This could restrict other business ventures and growth opportunities as it may reduce the available equity you can access for supporting loans in the future.

Review your options

Compare all long term finance options.

I want to lease or hire purchase

Leasing or hire purchase will give you immediate use of eligible new or used equipment without tying up your cash. The minimum finance amount is $15,000 and rentals are fixed over the finance term which can range from 1 to 7 years.

We can finance up to 100% of the value of the asset. The asset itself generally acts as security, resulting in lower initial costs and improved cash flow for your business.

What should I consider when deciding between leasing or hire purchase?

As each business is different, it is best to talk to us or your accountant about which option suits your business needs. Things that we (or your accountant) would discuss with you, and what you should consider when choosing the right finance, may be:

• What finance options will suit your cash flow needs and tax strategy?
• What is the value of the asset to you at the end of the term, compared to the value determined by the Australian tax office?
• Do you want to own the asset at the end of the term or replace it?
• What are the overall tax benefits to your business, depreciation, deductions and GST?
• What are the security requirements for the facility and the impact on your business now and in the future?

We will work with you to determine the best solution. Call us to discuss your options.

Read about Equipment finance.