Equipment Finance
For a business, it’s essential that the operation has access to all of the physical assets, tools, and equipment needed to make a success of the commercial enterprise. Needless to say, this is easier said than done in many situations. The fact is that equipment is often expensive, prohibitively so. Starting a business up, or expanding it into new territories or markets, requires a significant injection of capital – and that’s not always readily available. If you’re in a position like this, it might begin to feel like it’s all a bit hopeless, but that’s not the case. One option that you have is to secure capital through equipment finance channels. Naturally, that’s where we come in handy. At Car Loans Bendigo, we’ve got substantial experience when it comes to negotiating equipment loans for our commercial customers – and we’re confident that we can attain the ideal results for you. For some further insights into what equipment finance is and how it works, simply read on below. If you have any other questions or queries, our customer service team can provide the answers.
Understanding Equipment Finance
Equipment finance is something that many people, even long-term business owners, are not that familiar with. Essentially, equipment finance is where you secure loans from lenders to help with the purchase of new equipment for the business. Of course, the equipment will need to be justifiable for the business in question, since the equipment is actually used as collateral for the loan. What this means, is that if you default on the loan, you’ll also lose the equipment.
What is Covered by Equipment Finance?
As mentioned previously, you’ll need to take steps to justify the purchase that you’re planning on making with your equipment loan to secure it in the first place. What is, in fact, justifiable is obviously going to vary considerably from one type of business to the next. For example, an ice cream parlour is not going to need the same kind of equipment that a mechanic service might require. Generally speaking, the items covered are broad in nature, so office equipment, heavy machinery, and electronic equipment, for example, are all fine.
Facilitating Expansion
If you’re going to run a successful business, you need to constantly push new boundaries and strive to improve the quality of your products and services. For many businesses, the only way to manage that is by purchasing more modern, more functional equipment. Whether you’re trying to develop your current services into something even better or you’re looking to open a new site for your business, an equipment loan gives you the flexibility to do that.
Freeing Up Credit Lines
Some people make the mistake of thinking that the only line of credit that they might have for their organisation is the typical business loan that they might secure. Annoyingly, this means many people use their business loans to purchase equipment, when of course, they could have used equipment finance and kept the business loan credit line free. Once we make sure you have a great equipment finance set up in place – with reasonable interest rates – it’ll be clear that you have far more manoeuvrability.
