How to Choose the Right Equipment Finance for Your Business?

The right equipment can help your business in becoming more productive and profitable. So, if you want to drive your business forward and don’t have the cash flow to invest in equipment, you can obtain finance for it. Business equipment finance can be used for purchasing new and used equipment or vehicles. It will help you conserve your working capital for other purposes like inventory or operating expenses.

Business equipment finance is ideal for established businesses who want to finance the purchase of:

>> Cars, utilities, and light commercial vehicles

>> Trucks and buses

>> Forklifts

>> Computing and office equipment

>> Printing, medical and manufacturing equipment, or

>> Industrial plant equipment

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Choosing the Right Business Equipment Finance Arrangement

Lenders/credit providers offer many types of business equipment finance options. You have to choose the right one to run your business smoothly. Here is a list of different kinds of vehicle and equipment finance arrangements available in the market:

Finance Lease – This financing arrangement allows you to use the equipment or vehicles and enjoy ownership benefits. The lender/credit provider retains actual ownership of the goods.

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Commercial Hire Purchase – In this financing arrangement, the lender/credit provider owns the equipment or vehicles during the hiring period (usually two to five years). And when you pay the final installment, ownership is automatically transferred to you.

Chattel Mortgage – It is an effective way to finance goods for business use. Under this loan agreement, you will borrow funds to purchase equipment or vehicles (chattel) and take ownership at the time of purchase. Against these benefits, you will provide the security for the loan to the lender/credit provider through a mortgage over the equipment or vehicles.

Equipment Rental – An agreement between the lender/credit provider and you whereby the lender/credit provider buys the equipment or vehicles on your behalf and rents it back to you over a fixed period (two to five years).

Seeking the Right Advice for Obtaining the Right Business Equipment Finance.

It is vital for your business that you have the right finance structure in place. If you choose the wrong loan package, you may hurt your business’s financial stability. To avoid such mistakes, you must consult an expert commercial finance broker. They have a thorough knowledge of the credit policies and standard requirements for business equipment finance. So they can provide you with the right financial advice. You should also seek your accountant’s help in understanding the treatment of depreciation and any tax advantages that may be available.

So, this is how you can obtain the much-needed equipment finance for your business.

Best of Luck! I hope you get the right financing deal.

You must employ the right finance brokerage firm’s services to obtain the right business equipment finance. Contact Singh Finance on 0424 190 908 and let its expert finance brokers find you the best commercial loan. Get ready for a quick approval and lower rates on equipment finance.