When your business needs new work vehicles or commercial equipment, finding the right finance solution can make all the difference to your cashflow and operations. Asset finance offers Australian businesses a practical way to acquire everything from trucks and trailers to specialised machinery without the hefty upfront costs.
What is Asset Finance?
Asset finance is a funding solution where the equipment or vehicle you're purchasing serves as collateral for the loan. This arrangement allows businesses to spread the cost of buying new equipment or upgrading existing equipment over time, rather than paying the full amount upfront.
The beauty of asset finance lies in its flexibility. Whether you're looking at office equipment, work vehicles, or specialised machinery like excavators, tractors, graders, cranes, or dozers, there are finance options designed to suit your business needs.
Types of Asset Finance Available
Australian businesses can choose from several asset finance structures:
Chattel Mortgage
With a chattel mortgage, you own the asset from day one while using it as security for the loan. This option often provides tax benefits and allows you to claim depreciation and interest as business expenses.
Hire Purchase
Under a hire purchase agreement, you make fixed monthly repayments over an agreed term. You'll gain ownership of the vehicle or equipment once all payments are completed. This structure helps you manage cashflow with predictable payment amounts.
Finance Lease
A finance lease lets you use the equipment throughout the life of the lease while making regular payments. At the end of the term, you typically have options to purchase, upgrade, or return the asset.
What Can You Finance?
Asset finance covers a wide range of business equipment and vehicles:
• Work vehicles including trucks, vans, and utility vehicles
• Trailers and transport equipment
• Construction equipment such as excavators and graders
• Agricultural machinery including tractors and harvesters
• Industrial equipment like cranes and dozers
• Factory machinery and production equipment
• Office equipment and technology
The Application Process
Applying for Asset Finance through Loan Pantry involves a streamlined application process. We work with banks and lenders across Australia to find loan options that match your requirements.
When you're ready to start, you'll typically need to provide:
• Details about your business and financial position
• Information about the asset you want to purchase
• Your preferred loan amount and repayment term
• Recent financial statements or tax returns
Interest Rates and Loan Terms
Interest rates for asset finance vary depending on several factors including the type of equipment, loan amount, and your business's financial profile. Terms typically range from one to seven years, allowing you to choose a repayment period that aligns with how long you expect to use the equipment.
The secured nature of asset finance often means more favourable rates compared to unsecured business loans, as the lender has the equipment as security.
Benefits for Your Business
Choosing asset finance for your vehicle or equipment purchases offers several advantages:
• Preserve working capital for other business operations
• Spread costs over time with predictable monthly payments
• Potential tax benefits depending on the finance structure
• Access to newer, more efficient equipment
• Ability to upgrade equipment as your business grows
Making the Right Choice
With numerous commercial equipment finance providers in the market, having access to multiple loan options is valuable. At Loan Pantry, we help Brisbane businesses and clients across Australia compare different finance options to find solutions that work for their specific circumstances.
The right asset finance solution depends on factors like your cashflow requirements, tax situation, and how long you plan to keep the equipment. Our team can explain the differences between various structures and help you understand which might work for your business.
Whether you're a tradie needing a new work vehicle, a construction company looking to add excavators to your fleet, or a manufacturer wanting to upgrade factory machinery, asset finance can provide the funding solution you need.
Call one of our team or book an appointment at a time that works for you to discuss your asset finance requirements and explore the options available for your business.
