What Types Of Equipment Can Our Equipment Finance Broker Brisbane Help With?
Any business can benefit from buying or upgrading their current equipment to one with the latest technology. However, the reality is that most business owners don’t have enough working capital to acquire new equipment outright. Even if you have sufficient funds on hand to purchase machinery your business needs, chances are you’ll be left with lesser capital to finance your daily operations or explore new business opportunities. This is where equipment finance, or an agreement where you can purchase anything your business requires either on a loan or rental basis, is a good option. Allow us to discuss your options when dealing with an equipment finance broker Brisbane.
What Forms of Equipment Can We Help You Avail?
As a refresher, you can use this financing option to acquire any business requirement you may have. You can purchase anything from:
- Buses, trucks, and other utilities
- Cranes, forklifts, and similar equipment
- Computers and other office equipment
- Earthmoving equipment (ask our earth moving equipment brokers for further help on this)
- Industrial plant equipment
- Medical equipment
Equipment finance can be divided into three categories:
Vehicle and Equipment Loan
This is the option most business owners choose and comprises around 80% of the finance market. In this agreement, your business owns the equipment from the start and the lender uses it as collateral, in case you default on your payments.
Equipment Finance Lease
An alternative to loans, our equipment finance broker Brisbane will suggest this option where the lender owns the equipment and allow your business to rent it for an agreed term and a fixed rental rate. Once the agreement ends, you can either return the equipment, refinance it, or pay the remaining balance to own it completely.
Hire Purchase Loan
Under this option, the lender owns the equipment outright and you make repayments until the end of the agreement when the ownership transfers over to you. You may want your accountant to prepare a cash flow forecast though, to see if you should make adjustments to ensure that your business’s financial status remains safe.
What Documents Should You Submit to Our Equipment Finance Broker Brisbane?
When applying for financing, the major advantage of working with a broker is we take care of the entire process from start to finish. Lenders will typically consider these before proceeding with the application process:
- Your business experience
- The type of business you’re in, particularly if it’s a high-risk industry such as mining or construction
- Your business’s profitability and cash flow
- The type of equipment you wish to finance, whether it’s a standard or special machine
- Your Interest Coverage Ratio (ICR) or your income to debt ratio
In general, lenders rank a business from 1 to 15 and applications from A to D. For example, an extremely strong business can get a 1A rank while new businesses can get a 15D rank and are more likely to be declined.
This is why it’s crucial to consult our equipment finance broker Brisbane who specializes in this field to make the process as hassle-free as possible.
How Can You Prove Your Business’s Income?
There are different ways to prove your business’s income, including:
- Projected cash flow statements prepared by your accountant
- Bank statements and tax returns
- In some cases, your Year To Date (YTD) income from the MYOB and your Net Cash After Operations
The world of equipment finance can be tricky for starters. Each type of financing structure has different tax implications, so it’s best to consult your accountant about your specific financial circumstances. Many online tools can also help you determine how much your repayments are, and many finance providers now allow you to match repayment schedules in times of higher cash flow.
mhf Finance: Your Equipment Finance Broker Brisbane
Running a business in itself is already tricky. This is why equipment finance brokers are here so you don’t have to stress about the financing process. Finance brokers work independently and aren’t tied to any particular lender, so you’re assured that your interest always comes first and they will help you find a lender that will work to your advantage.
We have a long list of products and lenders that you can choose from so you can pick one that meets your business requirements. To learn more about the services we offer, you can call us or complete our online form and our equipment finance broker Brisbane will get in touch right away.