What is an Equipment Loan?
390 words | 2min Read Time
If your business is constrained by cashflow but in desperate need of new assets - such as essential equipment, company vehicles or technology - equipment loans can often be the key to growing your business.
So, what is an equipment loan? It’s a type of loan that allows your business entity to own an asset and help you stay ahead in your industry, while the bank or lender uses the equipment itself as security for the loan. A huge variety of equipment can be financed, ranging from delivery vans, bobcats, tractors, company cars and buses to medical equipment and cutting-edge office and manufacturing technology.
“Having an equipment loan enables you to spread your costs, which frees up your company’s cash flow.”
An equipment loan can stabilise cash-flow, enabling you to invest in your business and manage it more efficiently in the long term. It might be time to upgrade your existing vehicles, or perhaps you are adapting your business to changes in the market and new gear is on the cards to increase future productivity? Whatever the case, an equipment loan might be the finance option you need to make those big wheels a big reality.
How do you know if an equipment loan is right for your business? Our expert finance brokers in Brisbane are here to guide you through a number of key considerations, including repayment structures, length of the loan and ways that we can work with your accountant to assess potential tax deductions and depreciation benefits. We help our clients take advantage of low interest rates and asses the benefits available as they use equipment loans to expand their businesses.
“By getting an equipment loan you’ll invest in your business, which in the long run can increase productivity and future sales.”
When finding a suitable loan arrangement for your business, we understand that every situation is unique and take into account your specific requirements. Working together, we can help you navigate these important decisions, assess the lending criteria and discover a great equipment loan tailored to your business. After all, that’s what friends in finance are for!
Talk to one of our finance brokers today to get expert advice in asset and equipment finance solutions. We do the hard work to find what is right for you and your business. That’s why we’re known around town as your friends in finance!