Equipment Financing Brisbane For Small And Medium Businesses

January 9, 2021


Equipment Financing Brisbane For Small And Medium Businesses

How Can Equipment Financing Brisbane Help Your Business?

As a business owner, you understand how important it is to have access to the latest tools and technologies. This can include anything from heavy machines, vehicles, high-end computers, to state-of-the-art medical equipment. While having relevant machines is the difference between a failing and successful business, the cost of acquiring them can be so costly. Whether you are a start-up, an emerging, or an established business, purchasing equipment to meet your business’s requirements can have a huge impact on your working capital. If you are planning to buy new equipment or upgrade your current inventory, then why not look into equipment financing in Brisbane to meet your purchase requirements?

What is Equipment Financing?

equipment financing Brisbane

Equipment finance is a type of business financing where businesses are given the capital they need to buy new equipment. This solution provides you with the funds necessary to secure the equipment needed for your business.

The equipment on its own serves as collateral for the loan so as long as you repay it on time, you can continue using the equipment. If a default happens for some reason, the lender will use the equipment to secure the remaining loan amount plus any additional costs. Once the loan is paid in full, your business owns the equipment.

There are many ways to fund large equipment purchases. Some types of equipment financing Brisbane include:

Equipment Leasing

This is a great way to make sure that your inventory of assets is in order. Some benefits to leasing assets include efficiency, tax services, regular upgrades, and cash flow management.

Hire Purchase

Similar to equipment leasing, a hire purchase means you need to make regular payments for an asset. However, as the name suggests, you’re buying the equipment and paying in installments. The big difference is that the purchase will reflect on your balance sheet from the beginning, making this a good option if you want to have an asset for the long run.

Plant Equipment Finance

This is all about manufacturing equipment, machine tools, heavy machinery, and construction equipment. If it shifts, lifts, or anything that goes in your warehouse, you can get it with this type of finance.

How Can Equipment Financing Brisbane Benefit Your Business?

Equipment financing benefits business owners since it gives them access to the latest tools and equipment without paying the ridiculous upfront amount of the equipment. Here are other reasons why you should consider this financing solution:

Increases Your Working Capital

This is the major benefit of financing. Because almost all business owners experience shortages in cash flow at some point, this allows them to free up working capital and spend it on other business expenses instead. 

Keeps You Updated With the Best Equipment

Equipment financing lets you take advantage of new technology by allowing you to use the most effective and efficient tools even without having the whole amount on hand. With equipment financing in Brisbane, you can easily acquire new and expensive equipment needed to do the job without needing to blow your working capital.

Tax Benefits

Smart business owners know how to use tax breaks to their advantage, and building a strong relationship with tax professionals is crucial to capitalize on all the possible benefits. Equipment financing allows you to pay the lender over an agreed period with interest and for most of the agreements, the interest can be considered as tax-deductible.

Frees Up Other Lines of Credit

Rather than applying for a business term loan to acquire funds to purchase the equipment you need, you can apply for equipment financing in Brisbane instead so you can have your other lines of credit open.

Let’s say you want to buy new equipment but don’t have enough funds available. You can apply for a business term loan where the lender will give you a certain amount, some of which you can use to buy your desired equipment. But in this case, you have to use a large portion of your business loan to purchase the actual machine, and this can lead to a working capital shortage. 

By applying for equipment financing, if your business faces a working capital shortage, you still have the option to apply for a business loan in the future. Since there’s no additional collateral needed to obtain financing, you can use your assets to secure other types of business loans.

Quick and Easy Application

Applying for equipment financing Brisbane only has one distinction: the size of the equipment. Most lenders cover equipment of up to $200,000, and the process of applying for “small ticket” items (anything below $200k) typically takes only 48 hours from start to finish. The lender will assess the type of the equipment, its value, estimated lifespan, and your and your business’s credit quality. 

If you have strong personal credit, your business has been existing for some time, and the desired equipment holds its value, you can expect fast approval. For “big ticket” items or those that cost more than $200k, the process is a bit more complicated and may take longer depending on the lender.

Why Should mhf Be Your Equipment Financing Brisbane Broker?

One of the biggest advantages of applying for equipment financing is, if approved, you can get the funds you need right away. This is good news for business owners who can’t wait for weeks or months to buy, replace, or repair important business equipment. 

As your earthmoving equipment broker, here at mhf, we have partnered with several lenders that can help secure the equipment you need without disrupting your cash flow. We’ll take care of all financial arrangements and find you a lender that will give you the capital you need with as little drama as possible. 

Call us today and let us be your equipment financing Brisbane brokers!


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