Do you need a qualified finance broker to help with a business equipment loan?
Finance Finance Finance strives to find the best deal for every client and their business.
Our clients from around the country approach us for help to purchase a range of items, including utes, trucks, trailers, SUV, cars.
We have even financed sausage machines (for human consumption) and machines that have helped make dog food.
Keep reading to learn more about equipment financing and how we can help.
Equipment Loan Financing
Want top of the range equipment so you can get ahead of your competition? We can help any Australian business – old or new, big, or small – with equipment financing.
- Truck companies transporting goods.
- Tradespeople e.g., builders, electricians, plumbers
- Property developers
- Medical centres
- Australian post or contract parcel drivers
- Uber drivers
- Real estate or land developers
Chattel Mortgage vs Finance Lease
Due to the popularity of Chattel mortgages at Finance Finance Finance we can make sure we offer you the best possible choice and options for you to choose from. We can negotiate a better rate and help in making you feel secure in knowing that we are part of the journey to get you a new vehicle or equipment. See below what a Chattel mortgage offers for your business compared to a Finance lease.
Chattel mortgages: Key Points
- The lender takes a mortgage or encumbrance over the car or equipment, the borrower makes monthly repayments.
- You as the Borrower take ownership of the car or equipment from the time of settlement of the loan, the vehicle is registered in your name and you are responsible for all operating costs, maintenance, insurance, and registration.
- When the loan including the residual are finished the lender will remove the encumbrance/mortgage against the car or equipment.
- The interest is fixed for a time of 2yrs to 7yrs depending on how long you want the loan to run.
- GST on the purchase price of the car or equipment, can be claimed by the borrower on their next BAS if you are GST registered.
- GST is claimed on purchase price you cannot claim GST on the monthly repayments or the interest.
- Balloon or Residual can be percentage of the purchase price or amount you can choose from 5% to 60% depending on the age of the vehicle or equipment.
- The balloon or Residual can be part completed by trading in the item, refinancing or paying it out prior to being due.
- Depreciation on the vehicle or equipment is claimed in accordance with ATO Guidelines.
With a finance lease, it is the financier who owes the asset. The client then leases or hires the asset from the financier for a fixed monthly payment over a set time 2yrs to 5yrs. At the end of the contract the client can pay a small fee to own the vehicle or equipment outright. Whilst they seem similar there are options that make the two of them stand apart
- The financier owns the asset,
- The financier claims the GST input credit.
- Predetermined residual at the end of the term,
- Unable to make an upfront deposit to reduce the amount financed,
- Lease payments may be tax deductible,
- Client usually has the right to purchase the asset at the end of the contract,
- GST is charged on monthly repayments and the residual,
- Residual governed by the ATO guidelines.
Ownership and GST are the biggest consideration.
As you can see the main difference between Chattel mortgage and finance lease are the ownership of the asset and the tax implication.
Most owners and finance companies would rather Business choose Chattel mortgage.
- It provides ownership of the asset from day of settlement.
- Those registered for GST can claim the full input tax credit on the purchase price, in their up-and-coming BAS.
- No GST payable on the monthly repayments, or any residual
- Interest rate may also affect your decision.
- Also, it makes it easier not only for you as a client, but your accountant as well.
Learn more about equipment financing we can help with here.
How Quickly Can Equipment Financing Be Arranged?
At present, it can take up to a week for finance to be approved. That is because the Coronavirus pandemic has altered how finance companies now look at deals.
Financiers will also delve into a business’s financial history, to ensure there is no cause for concern. Additionally, some will want bank statements to prove that income is coming in on a regular basis.
Business Finance Broker Brisbane
Looking for a business finance broker, here’s why Finance Finance Finance should be your top pick:
- We do our homework and have a range of finance options:
- Our motto is there is always a better place to go to than the first option. As we have access to over 30 different finance companies, we know not all of them will suit a certain client or clients.
- We get to know our clients and their finance BDM’s:
- Having this knowledge allows us to find the most suitable deal for our clients and ensure it satisfies their needs and wants as best as possible.
This is what one of our clients says about working with Finance Finance Finance:
“Great service and advice, really good communication and has the clients’ best needs at the forefront of the services provided.”Stephen B.
Business Equipment Loan
Are you ready to discuss a business equipment loan with our award-winning finance broker?