Business Equipment Financing

Equipment Finance is a convenient way to finance the purchase of a wide range of business equipment as general plant, office and IT equipment, software, POS equipment, medical and dental, forklifts and excavators. While Equipment Finance is generally sized according to the business turnover and for office and equipment finance, we offer finance from $5,000 to $100,000 or up to $1,000,000 with financials.

Criteria

We can assess any business with an Australian ABN that has been trading for 2 years or more with a bank statements for 12 months.Property backed director is an added advantage.

Key Features

  • Finance from $5,000 up to $100,000
  • No financials required, bank statements only
  • Loan term and rate vary by asset type, from 3 to 5 years
  • For business use only
  • Broad range of assets
  • Chattel Mortgage / Loan

Documents Required

  • 12 months bank statements via online portal
  • Application form signed by the owner
  • Vendor Invoice
  • ID of the Purchaser

Interest Rates

9 – 13 % per year

How It Works


List of included industries:

We provide business finance to the majority of industries, including:

  • Retail Excluding fit outs
  • Wholesale
  • Manufacturing
  • Professional Services
  • Food and beverage(*All assets require a serial number)
  • Technology
  • Automotive and more..

 

When to consider Equipment Financing

Equipment financing is a conservative financial option for businesses, aimed at business expansion and growth. For example, a construction company may need to grow or expand by introducing a new range of earth-movers, which will benefit it in the long run. Another example is the transport sector, which may need to introduce a new line of buses to cover a new route.
 
Alternative lending smoothens the process of obtaining financing for your equipment.
 

How Alternative Lender can Help for Equipment Finance?

Before attempting the loan acquisition process, it is recommended that you first determine the loan’s specific use, i.e., to acquire new IT infrastructure or heavy machinery. Create a plan for the money and work out the amount required. Alternative lending for equipment financing is sensible due to the reasons below:
 

When You need the money fast

If you have no way of purchasing the equipment for your business, alternative lending can help you greatly. Alternative lending provides you with capital, like a short-term loan. In addition, these loans are readily available.
 

Quick Application Process

Alternative lending does away with the need for financial documents and organisational plans.
 

Below the Bank’s Qualifications

Alternative lenders have minimal regulations when compared to banks, which are stricter when it comes to approving loans. Moreover, their processes seem to be slow, and this might be disadvantageous if you need quick equipment financing
 

Benefits of Equipment Finance through Hubbe

Not much capital is required by a company in getting the equipment

  • No depreciation costs and taxes are involved as there is no ownership of equipment
  • There is no fear of equipment obsolescence
  • There is much flexibility as you are not stuck with one limited functioning piece of equipment, this helps you keep in pace with the latest technologies

Three of the most commonly used equipment financing options are listed below. The guide should assist you in choosing the right equipment loan that best fits your business. If you are still unsure and would like to discuss with our specialist finance consultant:

Operating lease is a financial agreement in which the lease term is lesser than the real useful lifespan of the equipment. Operating lease is usually used in various businesses to allow for relatively short-term use of the equipment.

Features include:

  • Its term is lesser in comparison to the financial lease
  • Ownership is not passed to the lessee at any time
  • Several lessees can be used for one asset. It does not merely depend on a sole lessee for its cost recovery
  • The minimum amount for operating lease is $10,000

Benefits:

  • Not much capital is required by a company in getting the equipment
  • No depreciation costs and taxes are involved as there is no ownership of equipment
  • There is no fear of equipment obsolescence
  • There is much flexibility as you are not stuck with one limited functioning piece of equipment, this helps you keep in pace with the latest technologies

A finance lease is such kind of lease wherein there is a transfer of a substantial portion of rewards and risks linked with the ownership.

  • It puts the lessee in the rank of a virtual owner
  • The lessor only takes financial rewards and risks and is not accountable for asset-based rewards and risks
  • The asset cannot be returned by the lessee
  • The rate of return for the lessor is fixed and does not depend upon the asset performance or value or any other extraneous charges
  • They technically differ from secured loans but are substantively similar to them.

With a chattel mortgage, you buy the equipment funded by a loan from the finance company. The lender retains a charge over the equipment (much like a mortgage on a home) and you have full use of it over the term – it’s yours. When your last repayment is made, the lender releases the charge over the equipment.

Ownership starts from the beginning of the contract, so you can deduct the depreciation of the goods, as well as the interest component of the payments. GST can also be claimed back in full in first BAS.

  • No GST added to interest component of repayments
  • Depreciation and interest are tax-deductible
  • Balloon and deposit options to decrease monthly payments
  • No capital outlay: easy on your cash flow
  • Flexible terms: 24-60 months
  • A simple & easy approval process

Frequently Asked Questions:

As the taxation and accounting treatments of various finance products may vary, we recommend you seek independent expert advice before choosing an option.

The loan term for this product is 3-5 years, depending on the asset being financed.
Yes. We also offer a Flexible Term Loan and an International Line of Credit to help with your other finance needs.
Yes, absolutely. Our Relationship Managers are available to help you with any questions and at every step of the short and simple process. They can be reached on 1800 86 4769
Once you sign the Loan Agreement, the funds are transferred to the vendor for the purchase on the same day.
We offer finance for a wide range of business equipment including, general office equipment, yellow goods, green goods, manufacturing plant and workshop, telephony, computer and IT (maximum 50% software), catering and hospitality, as well as other equipment with valid serial numbers.
Our process is simple and can be completed online. We require a completed Application Form and 12 months of bank statements to process an application for General Equipment Finance. Prior to funding, we will need the vendor invoice and identification documents for the purchaser. 

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