equipment-finance

Equipment Finance and How to Compare It

Get essential business vehicles, plant and equipment by choosing a competitive equipment finance option.

For some businesses, a wide range of equipment and machinery is essential to ensure financial success. Whether it’s heavy machinery, specialised medical equipment or the latest IT devices you need, equipment finance from a lender can give you access to the funds you need to help your business acquire what it needs to continue running.

NAB Vehicle & Equipment Finance Offer

NAB Vehicle & Equipment Finance Offer

From

5.49 % p.a.

fixed rate

  • Funds within 2 business days
  • No deposit on loans up to $150,000
  • Low fixed rate
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100% confidential application

NAB Vehicle & Equipment Finance Offer

A specialty loan of up to $150,000 to purchase business equipment with no deposit.

  • Interest rate from: 5.49% p.a.
  • Interest rate type: Fixed
  • Application fee: $500
  • Minimum loan amount: $10,000
  • Maximum loan amount: $150,000
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Business lenders you can compare today

Rates last updated December 13th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
NAB Vehicle & Equipment Finance
$10,000
$150,000
1 to 5 years
$500
Benefit from a low fixed rate and no upfront deposit to purchase vehicles and equipment for your business.
Lending Express Business Loans
$5,000
$500,000
0.25 to 2 years
$0
Apply online for up to $500,000 and get access to over 25 lenders through Lending Express.
Prospa Business Loan
$5,000
$250,000
0.25 to 2 years
$0
A business loan available up to $250,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases. Note: Businesses taking a loan out will have no repayments until 6th January, 2019
Valiant Finance Business Loan Broker
$5,000
$1,000,000
0.25 to 5 years
$0
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Moula Business Loan
$5,000
$250,000
0.5 to 2 years
$0
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
GetCapital Flexible Business Loan
$5,000
$500,000
0.5 to 2 years
Initial draw down fee
A flexible business loan up to $500,000 with convenient top up and redraw facilities. Business must have been operating for 9 months+ and have monthly sales of $10,000+
businessloans.com.au Flexible Business Loan
$5,000
$500,000
0.5 to 2 years
Initial draw down fee
A business loan up to $100,000 for unsecured loans, or $500,000 for secured loans that you can use for any business purpose. Transparent costs and redraw facility available.
OnDeck Business Loans
$10,000
$250,000
0.5 to 2 years
2.5% origination fee
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.

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What is equipment finance and who offers it?

Equipment finance is designed to give you access to the funds you need to purchase essential specialised equipment for your business. Whether you’re looking to purchase a forklift to move goods in your warehouse or specialist medical monitoring machines for your private practice, equipment finance is on hand to help. A large number of banks and other financial institutions offer this lending possibility, though there is a range of equipment finance options borrowers can choose from. However, choosing the best approach for your business will depend on a range of factors including your financial situation, taxation needs and budget.

How does an equipment loan actually work?

Equipment finance gives you access to whatever important business equipment you need without having to pay for it upfront. Instead, you can receive the funds you need from a bank or lender and then work to pay off your purchase over a set repayment period. In other words, you get all the benefits of ownership before you actually own the equipment. However, there are several different financing routes you can choose to go with, including taking out a business loan, a hire purchase, finance lease or novated lease. Read on to find out more about how each different type of equipment finance works.

What are the way I can finance my business equipment?

  • Commercial loan or equipment loan This is probably the type of finance most borrowers are familiar with. As a secured business loan, the asset you wish to buy will be used as security for the loan. This means that you own the item in question and can claim any interest charges and depreciation of the asset as tax deductions. Compare these loan types.
  • Hire purchase This is where a financier purchases an asset on your behalf and then you buy it off them in instalments. Under this arrangement, the financier owns the asset until you have paid it off and ownership transfers to you.
  • Finance lease A finance lease involves a lender purchasing the asset you want and then renting it out to a business for an agreed period. You can choose from flexible repayment terms to match your budget, while the rental payments you make are usually tax deductible.
  • Novated lease A novated lease is where you enter into a finance lease with a financier, but instead of you making the repayments, your employer makes the repayments out of your pre-tax income. This is a form of salary sacrificing.

How do I compare products that provide equipment finance?

  • Find out the interest rate. The interest rate offered will obviously influence how much you pay over the life of your loan, so look for one that offers a low rate of interest. You’ll also need to consider whether you want the security of a fixed rate or the possibility for saving that a variable rate offers.
  • Compare the fees and charges. Whenever you sign up for any financial product, it pays to make sure you’re aware of all the fees and charges attached to the deal. Read all product information closely to know if the finance option you choose attracts an establishment fee, early repayment fee etc.
  • Establish if there are any taxation benefits. The range of equipment finance options are assessed differently when tax time rolls around. Each approach has its own potential tax benefits, so seek advice from your accountant to learn which one suits you best.
  • What are the loan terms? How long can you take to pay off your asset? Terms typically range from 12 months to seven years, so look for equipment finance that offers a term suited to your financial situation.
  • Are there flexible repayment options? How often does each vehicle finance option let you make repayments? Look for a solution that lets you schedule your repayments in a way that suits your budget.

The good and not-so-good of equipment finance

Pros

  • Range of options. If you’re looking for equipment finance you can find options to suit a wide range of business needs and budgets.
  • Keep your business running. Equipment finance gives your business access to essential items that you might not be able to afford upfront, helping you stay competitive in the marketplace.
  • Flexible repayments. Equipment finance allows you to tailor a repayment schedule to suit your budget.

Cons

  • Too much choice. The range of finance options and potential tax benefits available can be tough to wrap your head around, so you may need help from your accountant to choose the best equipment finance solution.

What should I consider avoiding about equipment finance?

The main pitfall to avoid with equipment finance is getting into a financial agreement that you simply cannot afford to service. It’s important to consider how essential any equipment is before you commit to a purchase, as well as make sure you’re aware of your ability to make repayments on time. Another common issue is that some people can get confused by the array of equipment finance options available. Seeking assistance from your accountant is usually the best way to go to ensure you make the right choice.

What other questions should I ask?

  • Which finance option should I choose? The right finance option for you will be influenced by a whole range of factors, including how you do your accounting and your approach to taxation, so seek help from your accountant to determine the best product for your needs.
  • What fees and charges should I keep an eye out for? Read product documents closely to look for things like establishment fees, late payment fees and early repayment fees. It’s also a good idea to keep an eye out for ongoing monthly or annual fees.

Equipment finance comparison

Rates last updated December 13th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
Lending Express Business Loans
$5,000
$500,000
0.25 to 2 years
$0
Apply online for up to $500,000 and get access to over 25 lenders through Lending Express.
Valiant Finance Business Loan Broker
$5,000
$1,000,000
0.25 to 5 years
$0
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Prospa Business Loan
$5,000
$250,000
0.25 to 2 years
$0
A business loan available up to $250,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases. Note: Businesses taking a loan out will have no repayments until 6th January, 2019
NAB QuickBiz Loan
$5,000
$100,000
1 to 3 years
$0
Apply for up to $100,000 and get a response within 60 seconds. No upfront or ongoing fees and a transparent fixed rate.

Compare up to 4 providers

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4 Responses

  1. Default Gravatar
    AndreJuly 20, 2017

    Hi

    I need to get a loan or finance for some product. I’ve got really bad credit and everywhere declines me, even though my business which is doing well and has good credit. Where can I get a loan that doesn’t look at the director or just approves me. I will pay high interest, I don’t care.

  2. Default Gravatar
    KakeetoJune 17, 2017

    Dear Sir/Madam,

    How are you there?

    I am interested in your services. I want to buy a commercial industrial flake ice making machines in Australia for my ice plant project buy. My factory is outside Australia, can you help me with loan to buy my plant equipments? I already have quotation from the manufacturers in Australia and I want five years duration period to clear my plant equipments loan.

    Thank you.

    • Default Gravatar
      JonathanJune 17, 2017

      Hi Kakeeto!

      Thanks for the comment.

      Actually, you’re on the right page!

      You can compare the list of lenders we have on the comparison table based on your personal preferences such as term, fees and loan amount.

      Click “Go to Site” green button of your chosen lender to proceed with your application.

      Hope this helps.

      Cheers,
      Jonathan

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