Buying new machinery is a regular and recurring process for most operators. They know their requirements, know the brands, often know the dealers, and are familiar with the procedure of assessing the features to select the make and model best suited to their operational needs. But many operators are less familiar with the requirements and processes to apply for machinery loans.
While there are variations in interest rates and other aspects of equipment finance across the commercial lending market, most lenders have similar loan application requirements. Meeting those requirements can affect the loan offer in regard to the finance term, rates and security. Having a good understanding of what will be required to apply for machinery loans, may benefit operators in faster approvals and potentially better loan offers.
As specialists in asset financing, Jade Equipment Finance provides expert services for operators to apply for machinery loans with a streamlined, simple process. Our experts advise operators on what documentation is needed by the specific lender and assist with the paperwork to expedite processing and approval and to ensure the most workable solution is achieved.
All types of business set-ups are required to provide the same financials, with additional documentation often requested of sole traders, start-ups and self-employed operators. Whether purchasing machines for an agricultural operation, construction business or other industry from leading brands such as John Deere, Caterpillar, CASE and others, the same application form applies.
Prior to applying, update your knowledge on how to apply for machinery loans with this guide and contact one of our experts to assistance with your application.
Machinery Loans Eligibility
Asset acquisition finance is available to commercial enterprises only. Holding a current Australian Business Number, ABN, is an essential to be eligible to apply. The ABN may only recently have been received, but new businesses and start-ups may be subject to additional application requirements.
Providing ID in line with many financial processes in Australia is essential. We will advise the necessary documentation and details required for the entity and possibly also for the business owner(s), partners or directors.
Registration for GST is not an essential requirement to be eligible to apply for commercial credit. However, any business with a turnover in excess of $75,000 pa must register, under Australian law. Being registered may also be a positive for lenders.
Documents Required to Apply for Machinery Loans
Business operators are required to provide a range of documents on the financial position of the operator when applying for finance. These will include:- the annual accounts for the previous financial year at least; current year turnover; tax returns for at least the past year; BAS returns; bank statements; profit and loss statements; and asset and liability schedules. Where a business has their accounts prepared by a professional accountant, these documents should be readily available to them.
Many lenders do have a requirement that the business be operating for a minimum time period, usually 12-24 months. Where a new or start-up operation cannot provide financials for at least the past 23 months, we can assist with sourcing Low Doc and No Doc Machinery Finance offers through our specialist lenders based on 6 months of figures.
In addition to assessing financials, lenders will be reviewing the credit history and rating of the enterprise. Good scores attract the best rates and terms.
Self-employed, Sole Trader, Small Operator Additional Requirements
Small and new enterprises are typically requested to provide additional financials and information to apply for equipment loans. These may include the personal financials of the owner of the business such as personal assets and liabilities, tax returns and similar. Your Jade expert will advise the information needed for your specific application.
Details of Finance Product and Loan Requirements
To provide a quote and offer, operators will need to advise the specific type of loan that they are applying for. The choice includes Lease, Chattel Mortgage, Rent-to-Own and CHP. To make the decision as to which credit facility best suits their operation, we advise business owners to have that discussion with their accountant.
Details of the machinery being purchased is required. Details on the make, model, age and price along with the amount required for the loan should be provided. Where the application is being submitted prior to purchase, such as when preparing to buy at auction or at a field day, an indication of the machine and loan required should be provided.
Collateral Requirements
Asset acquisition finance allows for the machine being financed to be the security for the loan. Lenders assess the asset for suitability as collateral and the financials of operation to decide if any additional security needs to be provided. Many operators with good financials and credit history acquiring new units are not required to provide additional collateral.
Experts to Assist with Applying for Machinery Loans
While extensive documentation may be needed for commercial finance applications, the process of submitting applications and getting approved is simple and straightforward with Jade. On the first point of contact, we assign one of our specialist brokers to each customer to handle the complete application process.
We assist with the specifics and negotiate with our lenders to ensure a streamlined path to achieving the most competitive rates and affordable finance. Applications can be submitted via our online portal or by phone with one of our experts.
For assistance and a simplified process to apply for machinery loans, 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.
