An investment in new machines and equipment is a considered move for most operators in many industry sectors. If 2024 has been unpredictable with less than ideal results for your business, and you’re tentative about replacing machines, consider alternatives. If you’re markets or projects have changed and you need the right machines, there may be other affordable options to consider. A cost-effective alternative to completely replacing units and potentially achieving a workable solution may be to invest in upgrades, new tech and accessories. Jade Equipment Finance assists operators to finance machinery attachments and upgrades to adapt to changed operating conditions and improve business performance.
Changed market demand for agricultural produce could require crop changes and new attachments for tractors. New contracts in the construction and infrastructure sectors may require different types of buckets on loaders or other accessories on other equipment. A change in the general direction of the business may require a rethink of the workability of the current fleet and adapting equipment may be a consideration. For production lines, it may be new product lines that necessitate machinery to be adapted.
Many of the leading manufacturers – CASE IH, Caterpillar, John Deere, Komatsu, offer extras and accessories to upgrade and adapt existing models. With a workable loan, making these tweaks to existing units may deliver the desired results without the major investment in new machines. Contact your manufacturer to discuss what is available to upgrade your particular model and consider your financing options.
Finance Machinery Attachments - Loan Options
A wide range of machine extras and equipment accessories may be financed for many units including buckets, blades, couplers, technology packages, and more. Loan options to fund these types of units include asset acquisition credit facilities as well as secured and unsecured business loans.
Asset acquisition finance with Lease, Rent-to-Own, Chattel Mortgage and Commercial Hire Purchase may be used to fund items which can be used as collateral and considered suitable security by lenders. Utilising these forms of credit enables the business to structure repayments over the projected ownership cycle of the asset and benefit from the relevant tax deductions. Interest rates are competitive, and terms may be achieved for up to 7 years. Allowing the cost to be amortised over the life cycle of the attachment or the existing machine.
Where an attachment or upgrade does not meet criteria for asset acquisition credit products, business loans may be considered. A Secured Business Loan may use the goods being funded or other assets as the loan security. Where no collateral is available, an Unsecured Business Loan may be a workable option. Rates are higher for unsecured credit, so it is advisable, where possible, to use secured options.
For smaller priced accessories such as tech system upgrades and kits, a Business Overdraft may provide a flexible funding arrangement. While the interest rates on overdrafts are higher than secured asset loans, the flexibility of the terms and repayment schedules can be appealing. They may provide businesses with the option of acquiring the items without putting pressure on existing cash funds. Overdrafts can be arranged over timeframes to suit individual requirements.
While we recommend that business owners consult with their accountant on the most suitable credit facility for their business, our brokers can assist with quotes and proposals for different options for consideration.
Where a number of items are being purchased, one funding solution covering the entire outlay may be available, where all are acquired concurrently from the same supplier. Simplifying the financing and presenting a cost-effective means to upgrade and achieve the targeted business improvements.
Estimating Loans for Equipment Upgrades
Operators looking to invest in upgrades to existing equipment can quickly estimate loan commitments with our Equipment Finance Calculator. Comparisons can be made for different types of loans with different interest rates and for different units at different prices.
Interest rates vary with credit facilities. Refer to our current rate chart to obtain the rate for the loan product being considered to use with the calculator. Estimates can be generated to prepare budgets and projections and to assist with decisions as to which particular attachment or brand presents the most workable option.
Compare Finance Machinery Attachments with New Machine Loans
Is adapting existing machines the most cost-effective option for your business? Or would the purchase of a new machine be, long-term, a more cost-effective way forward? Depending on the cost of the upgrades or extras required to adapt the unit to suit the new purpose or objective, investing in the latest new, fully optioned model may be a more astute move.
The calculator can be used to assist operators with these types of decisions. Repayments on financing a new machine can be generated using the appropriate rates. The trade-in or sale value of the existing machine can be deducted from the new purchase price to establish the loan amount required. Estimates generated along with other benefits of operating new equipment may be evaluated against the option of upgrading the existing units.
To discuss your options to finance machinery attachments and equipment upgrades, contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
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