Equipment Finance
At Car Loan Hobart, we understand that every business is unique, and therefore will require different equipment. We aim to understand your business in detail, this will include researching the equipment that you need to finance. We use this and our experience to find a lender which is suited to your business needs.
What is equipment finance?
Equipment finance is a facility that is used to buy business assets. Examples of the assets can be motor vehicles, trucks, machinery, and equipment. Equipment finance can be used to buy both used and new equipment, which is needed for the functioning of your business. So, if you need any of these for your business, then call Car Loan Hobart for the best equipment finance.
How does it work?
In today's environment, most of the equipment finance is arranged through a loan known as a chattel mortgage. These loans are usually provided over a three year to a five-year term, and it has a fixed interest rate and a fixed monthly repayment. The asset itself is the only dedicated security taken for the loan when it comes to equipment finance arrangements, although the personal guarantee of the business owner is usually also needed. Business owners also have the option of either fully financing the asset or they can include a deposit to reduce the finance amount. Business owners can also choose to fully pay off the asset over the term of the loan, or they can incorporate a balloon payment, especially where an asset has a longer effective life than the loan term.
Benefits
Equipment finance is usually a better option for companies than buying with cash or using other finances such as overdrafts or mortgage secured loans. These are better kept for working capital purposes. Equipment finance will give a business a chance to grow, and succeed by giving it the boost that it needs, especially when equipment is required to get a task done or to offer a service. Equipment finance that is done through us, will be tailored to meet your business needs and budget. Equipment finance also gives you the chance to get your business off of the ground and to start bringing in income and profits. When a business can do this, then it can pay off equipment finance or other loans quicker. It also means that a business can invest in additional equipment to expand its business and its services. Equipment is essential for the growth of a business, no matter what industry you are in.
Why choose us?
Our experts at Car Loan Hobart have the experience to ensure that a loan package is tailored to your business. We will also take into consideration your tax and accounting requirements. We will even work directly with your business accountant to ensure that we cover all of your options. The way your equipment is financed is essential for maximizing cash flow and tax deductions, and we will ensure that your equipment finance works for you and your business.
