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Suitable Machinery Finance Options for Your Business

Suitable Machinery Finance Options for Your Business

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Suitable Machinery Finance Options for Your Business

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  1. Suitable Machinery Finance Options for Your Business -FINANCE BROKERS NEW SOUTH WALES

  2. Introduction Businesses have plenty of options when it comes to financing machinery.  Depending on the size and needs of the business, various hire purchase, leasing or loan arrangements may be suitable. Businesses should consider an option with manageable repayments that won’t put too much strain on their cash flow.  

  3. Hire Purchase For small businesses, hire purchase may be a good option to spread the cost of equipment over time. Your business will make an initial deposit followed by monthly repayments.  Payments will continue until you pay the full principal and interest.  The business will then own the equipment outright. It’s important to remember that ownership of the machinery doesn't pass to the business until you pay the contract payment. This may limit the use and opportunity for modification, depending on the type of equipment involved.

  4. Leasing • Leasing equipment can be a good way for businesses to acquire new equipment. This involves paying an agreed amount each month for a contracted period. However, your business needs to remember it doesn’t own the equipment.   • You may have the opportunity to purchase the machinery for a pre-agreed price.  Alternatively, return the equipment and/or take out a new lease. • This can be a flexible option for businesses that: • don’t meet the requirements of a secured loan or • need to upgrade their machinery on a regular basis. 

  5. Secured Loan (or chattel mortgage) Small and larger businesses may opt for a secured loan to finance the purchase of machinery. The lenders use the equipment as security for the loan. This finance is known as a chattel mortgage.  This type of finance is common and is sourced from a variety of banks and other financial lenders.  You will own the equipment from the outset, unlike a hire purchase or leasing agreement. Which means they have full control over the machinery.  If you default on any of these finance options, the lender will have the right to repossess the equipment. This could seriously disrupt your business and its operations.  So make sure that repayments can be comfortably managed before signing any agreements.

  6. Overdraft Facility Your business may find an overdraft can be a useful way to finance the purchase of machinery.  It may be helpful to make a one-off purchase or to finance a series of smaller purchases over time. An overdraft is an arrangement with a bank or other financial institution.  It gives you the flexibility to withdraw more money than it has in the account up to an agreed limit. With an overdraft, you will only pay interest on the amount you have withdrawn.

  7. Why Us? Finance Brokers NSW is a trusted subsidiary of Finance Brokers Tasmania Pty Ltd. We are well known and respected in the finance industry and have great relationships with our clients and lending partners. We take the time to look at the big picture. We don't just look at our clients short term needs but we use our knowledge and experience to set them up for their future goals.

  8. Contact Us? Website: https://fbnsw.com.au/ Mail ID: lance@fbnsw.com.au Contact No.: 0482 075 000

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