Regardless of your industry sector there comes a time to consider the future of the equipment you're using. Whether you're in manufacturing, engineering, construction, mining, medical or general business. Whether you operate heavy vehicles or operate a gym for heavy weight lifting. Whatever your business interests, if you have equipment of any type it will have a lifecycle when it requires attention. That may mean the end of its working life in its current format, the end of its value to your business due to new technologies or the end of your finance deal.
Whatever the timing, you may need to decide whether to replace that piece of equipment with new equipment, to refit, refurb and repurpose to get more use or to refinance equipment. For these purposes, Jade Equipment Finance may be in a position to assist with a financial solution.
Replace with New
The decision to replace equipment with the purchase of new can be a major decision depending on the purchase price of the equipment and the complexities involved in installation and commissioning and integrating the new into your production process. For manufacturing especially this can be a major decision.
For general business equipment such as computers, IT and other technology, when the systems need an upgrade it can be a no brainer in opting for a total system replacement. Technologies get superseded and trying to continue to operate with outdated tech can drag your business down or at the very least slow you down.
If you’re taking on new tenders in construction or engineering, your existing equipment may not be fit for purpose, especially for a long-term project.
Jade Equipment Finance provides a complete portfolio of loan products for the purchase of new equipment across all industries and all sectors. These products include Leasing, Rent to Own, CHP and Chattel Mortgage. Your Jade consultant will work with you through the purchase process to source you the best quotes on the various equipment you are considering to assist with the decision making and assist with the paperwork and other aspects through to settlement.
Refurb, Refit, Repurpose Finance
In the construction and mining especially, heavy equipment and machinery is built tough and built to last a long time. But certain elements of certain machinery may reach their lifecycle while much of the rest of the machinery is still workable.
In these instances, many of our Jade Equipment Finance customers look at refurbishing the equipment. This may involve a refit with say a new motor or engine or installing new technologies to bring it up to speed and extend the working life.
In the agricultural sector or say civil works and excavations, a new crop or a new project may require repurposing existing equipment to take on the new tasks.
These processes may involve significant investment in new motors, systems and componentry. Speak with Jade Equipment Finance about the financial solutions we can offer to assist. Some of our lenders have minimum amounts for equipment finance. But at Jade we have a large lender network, so we have many contacts to source a loan offer to meet your requirements. You may have already discovered that your bank is not in a position to extend you finance for your refurb. Jade Equipment Finance is accredited with many non-bank lenders including specialists in equipment finance who may better understand the equipment scene than your bank and as such be better positioned to assist.
Whatever your equipment refit plans, ensure one of the first steps is to contact Jade to discuss the finance options.
Refinancing Options
If your equipment finance deal is approaching the end of the loan term, you may be faced with the prospect of finding the money to pay-out the residual, buyback or balloon. All commercial finance products include the option for these ‘end of loan’ lump sum payments and most of our customers take up the option.
Depending on the initial purchase price and the percentage balloon you selected, the pay-out figure may be quite substantial. Finding the ready the cash for the lump sum may be looking like it will place undue pressure on your cash flow.
If you are choosing to keep that equipment and looking for finance to pay-out the residual/buyback/balloon, Jade Equipment Finance may be able to assist with a solution. Refinancing the pay-out with a new equipment finance deal is common practice.
This would involve your Jade consultant sourcing a quote for the specific loan type you require – Leasing, Rent to Own, Chattel Mortgage or CHP. All our commercial finance is based on our cheap interest rates which are currently even better due to the low interest rate environment.
The amount of the pay-out may affect the options available as some banks and lenders have minimum amounts that they will finance. Our specialist equipment lenders however are more flexible when it comes to structuring finance.
Refinancing the pay-out will involve setting up a new loan deal, possibly with a new lender. They will pay-out the previous lender and the equipment used as security against the loan or for off-balance sheet finance, they take ownership and lease/rent it back to you. Refer to our specific product descriptions on our web pages for details of the different finance types.
Whatever you decide – replace, refit or refinance, we are ready to assist with a financial solution.
For financial solutions on all types of equipment, contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN THE INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.
