The importance of loans at this age and time cannot be overstated here.Borrowing of money can be done through banks or moneylenders. It is due to the benefits of loans that the loan industry has continued to rise over the years. The industry is governed and ruled by various fiscal laws and regulations implemented over the years to protect both the consumer and the business entities.
There are various types of loans available in the market tailored to suit the various customer needs. Some of the popular types are consolidated loans, cash advances, auto loans, mortgages, student loans, personal loans and of course, business loans. Business loans, and equipment loans to be specific will form part of our subsequent discussions.
This type of loans is one which is secured by the equipment/s to be purchased for the business. The equipment in itself is the collateral, not any other asset. In case you are not able to repay what you were loaned by the bank or any other lender, the equipment bought is seized. Some equipment loans products not only can be used for buying but also leasing of equipment.
Business equipment is really important to improving the productivity and consequently, the profitability of the business. A business equipment loans may be used for example to buy vehicles (trucks and cars), forklifts, computers and other office equipment’s, medical equipment and industrial equipment.
Choosing the best equipment financing option
Choosing the right equipment loans can always be a daunting task.Just like with all decisions, there is a need for thorough considerations before agreeing to any agreement or contract.If you end up choosing the wrong package, the health of your business may be negatively affected significantly. Therefore, it is important for you to enlist the services of reputable or personal financial advisors such as an accountant or finance dealers who have the requisite knowledge to advise you accordingly.
Vehicle and equipment loans types available
- Chattel Mortgage
- It is the most effective and common loan type. The funds borrowed are used to finance the purchase of the business equipment or vehicle, chattel. The equipment purchased is the security for the loan.
- Equipment rental/finance lease
- With an equipment rental agreement, the provider of credit purchases equipment or equipment’s on your behalf (owns it) and rents it to you for a specified period, for example, 5 years.
- Hire Purchase
- This is a type of equipment rental agreement. But unlike finance lease, once you have completed the agreed terms, the ownership of the equipment shifts to you.
- Novated Lease
- This agreement type is one whereby the business provides vehicles to its employees. It is dubbed the easiest and effective way to own or buy a car. It is operated under the finance lease involving the lessee, employer and the lessor (finance company).The novation agreement only works during the employees working period.
The best finance companies offering equipment loans
- Aussie Equipment loans company
Apart from offering loans for buying equipment’s, the loan can also be used for leasing of equipment across Australia. The equipment loans can be used for catering equipment’s, buying of trucks or any other business vehicle, office and restaurant furniture among others.The business can be contacted through its website.There are a contact number and an email address provided including its location.
- FleetCare company
This company offers various products for equipment financing including commercial hire purchase, finance lease, Chattel Mortgage and operating lease. With an operating lease agreement, the FleetCare company leases to you a vehicle they own within a stated period, usually between 1 to 5 years. The benefits of this type of equipment loans are that no outstanding risks are associated with you, there are no deposits and there is a fixed monthly payment.In terms of helping in financing your vehicle loans, the FleetCare Company also has specialized in fleet management which greatly helps you in reducing operational costs which translates into more revenue for your business.
- Statton finance company
This company was founded in 1998 and boasts of having helped over 60,000 customers get better deals in the market. The company proudly identifies itself as the largest Australian car finance agent. The company offers mortgages, commercial finance including novated leasing, and financing fun activities including caravans and jet-skis and insurance services. The novated leasing is covered with operational costs including maintenance, 24/7 roadside assistance, and insurance.
- Atlas equipment finance
This company launched in 2011 has steadily risen to the top of the food chain. It boasts a loyal and ever-increasing clientele. The company offers 5 different types of equipment finance for your business needs which are; Commercial equipment, Tracks, and Utes, Engineering equipment, instant finance, and Earth moving equipment.In 2016, the company launched its insurance product known as Plus 62 Finance and Insurance. This finance product partly identified with the Steadfast Group which is arguably the biggest insurance broker in New Zealand and Australia.
- Finlease company
This financing company offers equipment loans under 5 broader areas. These areas include; Bus and coach finance, equipment finance, civil equipment finance, crane finance, healthcare, and manufacturing finance.In the equipment finance niche, it offers finance on excavation or mining equipment, waste, and recycling equipment, packaging equipment, drilling equipment and forestry equipment.In the manufacturing front, there is financing for engineering, sheet metal, plastic molding, printing and woodworking equipment.
- AGM Finance
With over 20 years of experience in the sector, the AGM Finance Company has several different types of equipment financing products. These products include; Lease, operating leasing, novated leasing, hire purchase, rental and Chattel mortgage.The products listed above virtually cover any possible type of equipment that you may need. Whether agricultural, earth moving or hospitality equipment, they have got something for you. Apart from the equipment loan service offered, they also offer insurance, home loans and personal loans services.
This company leases old or new cars for your use. Through their team of experts, they are able to offer you the best possible car deal. This is also made possible by the simple fact that Smartleasing Company has an expansive network, 650, of dealers.Apart from the aforementioned advantages offered by Smartleasing, maintenance, and other running costs are also covered, insurance is offered and 24/7 roadside assistance is guaranteed.
- LITTL LEASE company
This company established in 1999 offers four types of products; lease, commercial hire purchase (CHP), Chattel mortgage and rental.
The company employs the use of criteria in offering to lease, CHP/Rental, and Chattel Mortgage. This includes you having a clear credit history and if you are a property owner you must have been trading for 3 years.
- Moody Kiddell and Partners
The business has been in operation for over 35 years. The company offers equipment financing in a number of areas including; construction, transport and logistics, agriculture, earth moving, engineering and industrial and in telecommunications and IT.
The company offers a rental lease, hire purchase, Chattel Mortgage, Novated lease, and finance lease. These products are available for both individual and businesses. The financing company has been in operation for more than 10 years.