Equipment financing is a great way to purchase a specific piece of equipment, including vehicles, machinery, technology and business-critical tools. Equipment finance is also known as asset finance.
Think of this as a regular loan, where the lender gives you cash to buy an asset and then takes that asset as security in case you fail to repay the loan (just like a residential mortgage). This is how an equipment loan or chattel mortgage works. The lender will give you the cash to purchase the equipment then use the equipment as security for the money you are borrowing from them.
This form of equipment finance is where a contract is drawn up to purchase a piece of equipment over time from a lender. Technically you don’t own the equipment while making the payments but you are entitled to use it during this ‘hire’ period. Then, when the last payment is made, ownership of the piece of equipment is transferred to you.
A lease is similar to a hire-purchase agreement in that you do not own the piece of equipment you are using. Instead, you are ‘leasing’ it from the lender by paying a regular ‘rental’ fee (similar to renting an apartment). However unlike a hire-purchase agreement, you may not automatically own it at the end of the repayment period. Depending on the terms of the agreement with the lender you may have the option of purchasing the equipment at its depreciated value, extending the lease period, or returning the equipment.
Commercial property finance is specifically designed to fund real estate used for commercial purposes, whether for your own business or investment.
Commercial property loans can fund any premises used for business purposes, including offices, retail stores, warehouses, factories, galleries, gyms and other recreational facilities.
Rates and deposits vary depending on the type of property you’re buying. ‘Standard’ properties are preferred by lenders and therefore cheaper than ‘specialised’ properties.
In addition to your commercial property, you might also need to get your hands on new business assets, or a loan to fund renovations and fitouts.
Working capital loans are good to draw on funds to keep your business ticking along, without putting up property or assets
With working capital loans, you are able to borrow anywhere between $5,000 – $250,000 without any asset required as security.
Our clients have used working capital loans for a variety of reasons, some of which include; covering day to day expenses, paying employees, short term inventory purchases and/or to sustain busy periods on your business.
No. We do not charge any early termination or penalty fees if you pay your loan terms early. Get in touch with one of our consultants to discuss your circumstances.
A construction loan is a type of loan intended for those building a property rather than purchasing a pre-existing property.
Typically you must use a Registered Builder who is licenced and insured. We would require you to work with lenders in order to approve your choice of builder.
Since you are borrowing for a property that doesn’t currently exist, there is more risk for the lender. As such, lenders typically require more deposit than for a standard home loan. Amounts vary – discuss your individual circumstances with us today by giving us a call.
Construction loans are paid out at different stages to align with the progress of the building. Contact us today to inquire more about our different stages and how we can assist you with your application.