When your Schofields business needs new tools and equipment, the upfront costs can strain your budget significantly. Asset finance provides a practical solution, allowing you to acquire essential assets without depleting your working capital. Understanding your finance options can make the difference between seizing growth opportunities and watching them pass by.
Understanding Asset Finance for Tool Purchases
Asset finance is a funding method where the equipment or tools you're purchasing serve as collateral for the loan. This arrangement typically results in more favourable terms compared to unsecured financing options. The loan amount is directly tied to the value of the assets you're acquiring, making it an attractive option for businesses looking to expand their capabilities.
When applying for Asset Finance, lenders evaluate both your business's financial position and the value of the equipment being purchased. This dual assessment often leads to more competitive interest rate offerings, as the physical assets reduce the lender's risk exposure.
Types of Equipment You Can Finance
Asset finance covers a broad spectrum of business tools and equipment. Common purchases include:
• Work vehicles - trucks, trailers, and commercial transport
• Construction equipment - excavators, tractors, graders, cranes, and dozers
• Office equipment - computers, printers, and communication systems
• Specialised machinery - industry-specific tools and factory machinery
• Commercial equipment - manufacturing, processing, and production tools
Whether you're buying new equipment or upgrading existing equipment, asset finance can accommodate various business needs across different industries.
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Book a chat with a Finance & Mortgage Broker at Quick Mortgage today.
Financing Structures Available
Chattel Mortgage
A chattel mortgage allows you to own the equipment immediately while using it as security for the loan. This option provides potential tax benefits, as you may be able to claim depreciation and interest as business expenses. The vehicle or equipment serves as collateral, but you retain ownership throughout the loan term.
Hire Purchase
Hire Purchase agreements involve making fixed monthly repayments over an agreed term. You don't own the equipment until the final payment is made, but you have full use of the assets throughout the life of the lease. This structure can help you manage cashflow while building towards ownership.
Accessing Finance Options Across Australia
At Quick Mortgage, we can access Asset Finance options from banks and lenders across Australia. This extensive network means we can compare loan options from multiple providers to find terms that align with your specific requirements. Different lenders specialise in various types of equipment and industries, so having broad access increases your chances of securing favourable terms.
Our equipment finance specialists understand the nuances of commercial equipment finance and can guide you through the available options. We work with you to structure a solution that supports your business objectives while maintaining healthy cashflow.
Streamlined Application Process
The application process for asset finance has become more efficient in recent years. Most applications require:
- Business financial statements - recent profit and loss statements and balance sheets
- Equipment quotes - detailed quotes from suppliers showing specifications and pricing
- Business registration details - ABN, company registration, and trading history
- Personal guarantees - depending on the loan amount and business structure
Having these documents prepared can expedite your application and help secure faster approval times. Many lenders can provide conditional approval within 24-48 hours for straightforward applications.
Managing Cashflow Through Asset Finance
One of the primary advantages of asset finance is its positive impact on cashflow management. Instead of making large upfront payments, you can spread the cost over several years through structured repayments. This approach preserves your working capital for other business operations while still acquiring the tools you need.
Fixed monthly repayments make budgeting more predictable, allowing you to plan ahead with confidence. You can often align repayment schedules with your business's cash generation cycles, ensuring the new equipment contributes to revenue before major payments are due.
Why Choose Professional Assistance
Working with experienced finance professionals can significantly improve your chances of securing appropriate funding. At Quick Mortgage, we understand the local Schofields business environment and can tailor solutions accordingly. Our relationships with multiple lenders mean we can present your application in the most favourable light possible.
We also provide ongoing support throughout the application process, handling paperwork and liaising with lenders on your behalf. This service allows you to focus on running your business while we manage the financing details.
Our business loans team can also explore alternative funding options if asset finance isn't the most suitable solution for your particular circumstances. Sometimes a combination of different finance products provides the optimal outcome.
Whether you need a single piece of equipment or are planning a major expansion involving multiple assets, professional guidance ensures you make informed decisions that support your long-term business goals.
Call one of our team or book an appointment at a time that works for you to discuss your asset finance requirements and explore the options available for your Schofields business.
