Equipment Finance & Machinery Loans | Jade

For commercial finance facilities available for the purchase of business equipment and machinery include Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own loans. In addition, specialised services for businesses that do not meet all the requirements usually required for commercial finance by banks and other lenders are available. These services cover No Docs Loans, Low Docs Loans, ABN only Loans and options for Bad Credit Loans. While major finance products are based on a secured loan structure, there are possible options for unsecured loans where a secured loan is not available.

It is possible to include the costs associated with the delivery and commissioning of equipment and machinery in your loan package. In the case of some items of machinery, these costs can be quite significant and businesses are seeking to conserve their cash reserves by incorporating all expenses into their loan. An all-up finance package that is structured to work with your cash flow can be negotiated with the lender. If you are looking to include these costs in your finances, the expenses would need to be included concurrently with the purchase invoice to the lender. Adding items into a loan after the finance deal has been finalised is a different scenario.

Yes. In most if not all requests we receive for equipment financing, businesses are seeking a loan for the full purchase price of the equipment. This is also referred to as no deposit finance as the lender does not request that the buyer pay a deposit. Finance is sourced based on the full purchase price and in some cases plus costs involved with the delivery and installation of the equipment. By including 100% of the purchase price, business owners can conserve existing cash reserves and maximise the tax benefits derived from the finance product. By utilising the balloon or residual element of the loan, businesses can reduce the monthly repayments to a level that works with their cash flow. Effectively paying any deposit at the conclusion of the loan term rather than utilising cash for a deposit upfront. In some cases of special application categories such as bad credit loans and no docs low docs loans, a lender may request that the applicant reduce the overall total of the loan.

There are lenders that provide specialised services including Bad Credit Equipment Finance. This type of loan is not available through all lenders, especially banks. There are non-bank lenders who tend to be more flexible when assessing some loan applications. Bad credit loan applications are assessed on an individual basis. This type of loan may attract additional conditions to a standard equipment financing deal such as stricter criteria, property ownership, additional security and other inclusions.

Cheaper interest rates on equipment finance can be achieved by some lenders for a range of reasons. These include but are not limited to perhaps dealing with a broker who has accreditation with a large number of lenders – both major banks and non-bank lenders. By having more choices we have a greater range of options to source the best deal at the cheapest rates. Access to non-bank lenders that often operate only through industry-only channels. This category of lender often specialises in a particular industry and as such has a better understanding of the equipment being acquired and the conditions pertaining to that industry. With this level of knowledge, they are often better positioned to offer better interest rates. Non-bank lenders may tend to be far more flexible in negotiating on interest rates than say a major bank that often has to adhere to strict corporate loan guidelines. Brokers have the bargaining power to push harder for cheaper rates on behalf of customers.