Compare Equipment Finance Interest Rates and Repayment Estimates
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.
Commercial Equipment Finance
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.
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.
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.
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.
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.