Equipment finance may be regarded as a loan that businesses use to secure the purchase of equipment that aids their work. You may take a loan to obtain new equipment or update existing equipment to improve the business output. This sort of loan is not limited to businesses that use large-scale equipment and require substantial funds to purchase them. It includes small-scale businesses that need necessary items to aid their business activities, such as sanitary equipment.
In obtaining equipment finance, you must also decide whether it is advisable to get financing or buy the equipment outrightly. For instance, a business that requires a single cheap piece of equipment should endeavour to purchase the system with personal funds. Still, if it is a large-scale operation requiring heavy equipment, the business owner may opt for financing deals. This process is what we help you with at SN Lavalin. We offer you financial deals for easy asset acquisition.
Often, the value of the equipment acts as security for the loan. This financing option is similar to obtaining a loan to purchase a car or a mortgage to purchase a house.
Any business can seek equipment finance, and it could range from a food business needing industrial ovens to a transport business needing Big Mack Trucks. In this case, you may outsource a loan or choose from our available finance options for bulk purchasing equipment. Since equipment finance is similar to a house mortgage, if the loan is secured and default in payment occurs, we may repossess the equipment depending on your financing choice. To qualify for any financing option, the business must use physical equipment, such as vehicles, ovens, computers, among others. Also, your business must be good for the loan and have the financial capacity to provide service and maintenance of the equipment.
A business may decide to make use of equipment finance for various reasons such as the fact that the equipment may be too expensive to purchase outright, the business owner may also wish not to make use of personal funds to acquire the equipment, the business may be in a lane that always has a new technology being developed, and the company needs this new equipment to thrive, the need for new equipment may also warrant seeking out equipment financing.
Equipment finance helps start-up businesses that may not have the required capital to purchase heavy machineries. It also allows the company to retain a sort of liquidity from not removing money outrightly from the business capital. Still, payment from the financier spread across a couple of months.
Type of Equipment Finance
In equipment finance, the business owner must choose the type of financing agreement that best suits the business’s needs and whose terms are favourable to the business. At SN Lavalin, we offer the following types of equipment finance
Increase in work capital
Other loan options
Easy to obtain
Please note that all information provided above by SN Lavalin is general for careful consideration and derived from authorised Australian Government bodies. We shall not be liable for any error in understanding, presenting or interpreting, or analysing the information supplied in the main domain. Therefore, you are advised to consult your accountant, lawyer, or financial analyst for expert advice.