Commercial Equipment Loans | Business Lending
To purchase equipment for commercial loans and acquire assets is available through a large number of banks and lenders throughout Australia. It is one of the most popular and therefore highly competitive categories. The banks and lenders usually advertise their equipment loan interest rates and general terms and conditions on their website so some basic information is easy to access.
However, as it is a competitive sector, using a commercial loan to negotiate the best commercial interest rates and best loan deal can prove a savvy move. There are lenders that specialise in certain categories, defined either by industry or by the type of equipment or machinery. As these lenders are more active in that particular area they usually have a better understanding of the industry, possibly assess as a lower risk loan and offer better equipment deals.
Business Finance can assist you in connecting with lenders that are best suited to your industry.
equipment finance Comparison
Compare Equipment Loan Rates
Compare Chattel with Leasing, CHP with Rent to Own, Rent to Own with Leasing using our easy and free to use interest rate comparison calculator. We’ve listed the interest rates we are currently achieving across our loan portfolio as an easy reference guide. Simply enter the amount and term of your loan and immediately see the different repayment estimates.
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Disclaimer: The comparison chart displays the interest rates currently being achieved for different equipment finance products by Business Finance Australia. This calculator is provided solely as a reference guide only and in no way is intended as application form or to represent or indicate any offer of lending. Any repayments generated using this device are not an offer or approval. The fees and charges applicable to equipment lending as charged by individual lenders and brokers are not accounted for in the calculations. Any offer made to you for loan may be at a different interest rate and have a different repayment amount than the values shown.
Today's best rate
Finance Equipment From
6.85 % Fixed
* The interest rate is calculated on a secured loan for business use, effective 09/06/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
Today's best rate
Finance Equipment From
6.85 % Fixed
* The interest rate is calculated on a secured loan for business use, effective 09/06/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
Types
Types of Equipment Loans
The Equipment Finance category may include just about every asset, item of machinery and equipment required for the operation of a business across all industries.
Included but not limited to:
- Mining, drilling, resources and excavation.
- Agricultural and farming machinery and equipment.
- Construction, building, civil works and earth-moving equipment.
- Gym, fitness, beauty salons and equipment for other personal commercial services.
- Manufacturing, machine shops, engineering workshops and heavy duty machinery requirements.
- Waste, recycling and processing plant equipment.
- Medical practices and centers and health facilities.
- General commercial equipment such as computers, fit-outs, IT, hardware, software and machines.
- Warehousing and storage equipment including shelving and racking and forklifts.
- Marine industry equipment including barges, salvage equipment and vessels.
And many more! If you require machinery and equipment, there is most likely a lender that will offer you equipment loan.
Loan Types
Equipment Loan Types
Equipment Finance is available across the full portfolio of commercial facilities including:-
- Chattel Mortgage: the most popular and versatile loan type.
- Equipment Leasing: an off-balance sheet loan.
- Commercial Hire Purchase (CHP): very commonly used for equipment.
- Rent to Own: an off-balance sheet finance facility.
Each loan type has its own features and benefits in regard to suitability to either cash accounting or accruals accounting method; treatment of GST; tax deductions; balance sheet strategy; asset depreciation and ownership of the asset through the term of loan.
To decide which loan type is best suited for your particular business structure and will deliver the greatest advantage, it is advisable to consult with your accountant.
For the specific details of each loan type, please refer to our web pages where we provide full descriptions.
Loan Structure
Equipment Loan Structure
Each facility has its own features and individual lenders may offer variations dependent on individual commercial requirements.
But all equipment loan products usually include:
- A fixed interest rate which is fixed for the loan term.
- A fixed loan term, determined on the value of the equipment, its age and condition.
- Fixed monthly repayments.
- Option for a balloon, residual or payout which is a percentage of the loan amount which is due for payment, usually as a lump sum, at the end of the loan term.
Cost-Effective
Sourcing Cost-Effective Equipment Finance
As this is a highly competitive loan category, commercial entities are advised to consider a range of lenders to source the best deal.
Who should you contact? We have connections with a large number of major banks, non-bank lenders and brokers that operate in the equipment lending area.
Connect with us for lenders and brokers that offer cost-effective and tailored equipment loans.
FAQs
Business Finance FAQs
The role of a financial consultant is primarily to advise individuals and businesses on issues around their finances. They may advise, guide and manage matters in regard to superannuation, investments, accounting and others. The role of a finance broker is to source and structure loans on behalf of clients based on the brief provided.
No. The role of the broker is to source the cheapest and most appropriate funding offer from across a selection of many lenders based on a briefing and directions from the client. Directions which would include which particular loan type was required. The task is to source the most appropriate offer that meets the client’s requirements as indicated. The choice of the most appropriate product – Chattel Mortgage, Leasing, Rent to Own, CHP, Secured Loan or other, is dependent upon accounting issues and objectives of the business. The broker would encourage clients to discuss choice of finance product with an accountant.
No. The broker will source offers from across a selection of banks and lenders and present the offer to the customer. The customer remains in control of all decisions when engaging with these services. The customer may accept or reject any offer made by the broker.
It is usually not necessary to select a broker that is located in the same region as the client. Many operate on a nationwide basis and provide services to all areas from a head office location. Discussions are handled by phone, email and other online communications. Documents, including quotes and offers may be exchanged via email and other electronic document exchange and transfer systems.
Yes, depending on the scope of services offered by a particular brokerage firm. Brokers can provide services to both individuals and all types of enterprises. These include sole traders, owner-operators, partnerships, corporations and micro enterprises.
The range of services offered by brokers may vary. Those services may include sourcing funding options for customers with bad credit. When requiring bad credit funding, customers may consider source a service that does offer or specialise in this area.
The range of funding products offered by a business-focussed service may specialise in a specific area such as motor vehicle loans or asset funding or they may offer the full range of options. This full range includes, but may not be limited to, Chattel Mortgage, Leasing, CHP, Rent to Own, Overdrafts, refinancing Secured and Unsecured Funding with options for Low Doc and No Doc and bad credit. Some may also offer specialised products such as Insurance Premium Funding and Debtor Invoice Funding.
Not necessarily. Some commercial funding brokers may also offer home loan options. Home loan consultants typically specialise in sourcing funding in the housing sector and are accredited with banks and lenders that offer that type of funding. Those operating in the commercial sector will have accreditations with lenders that specialise in that area of funding.
Yes. The motor vehicle lending sector is one of the largest and most competitive in Australia. Broker-style lending services assist source the most appropriate offers from across the vast lender selection. Products offered would include Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own.
Services offered by brokers can vary. Clients can review the range of services offered by different firms to ensure their needs are included. Those needs may include equipment and machinery funding, loans for motor vehicles and trucks, refinancing, complex restructuring funding, general support and others. Clients may also consider the geographical locations covered to ensure they will receive the appropriate level of service. Ensure the company is large enough to handle the needs quickly. Ensuring the company has specific experience in the industry or sector of operation may also be a significant benefit.
Brokers have accreditation with banks and lenders. That means they have been approved by that lender to source lending from them on behalf of their clients. The number and range of accreditations will vary. Those with a greater selection including specialised lenders, may provide greater choice and better prospects to source cheaper offers.
Using a broker-style service can save customers time, not add more time to sourcing funding. They have the resources and expertise to quickly cover a large number of lenders to identify the one that is currently offering the most appropriate rate and option to suit individual needs. Sourcing and comparing quotes and offers from multiple lenders can take individuals a significant amount of time. Brokers can carry out this process much faster and with greater expertise. They may also have access to specialist lenders that work only at an industry level and not directly with customers.
Yes. Most brokers will provide refinancing as part of their service offering. Refinancing involves replacing the existing funding arrangement with a new loan. Refinancing may be provided for equipment and machinery funding, heavy vehicles, motor vehicles and for other commercial funding needs and purposes.
Yes. The role of brokers is to handle all the communications and negotiations with lenders on behalf of their client. This includes sourcing quotes and offers that best meet the client’s requirements. When presenting the offer, they should explain the details in terminology that is understood by the client. The client then makes an informed decision around accepting any offer and proceeding or not.