Equipment finance
An Equipment loan is normally a secured loan. Generally the only reason for an unsecured Equipment loan is when the Equipment does not meet the lenders criteria. This can be for any range of reason but an example would be the Equipment/Equipment is too old (over 12 years) is the guide for some lenders.
A secured loan allows the lender to take security of the Equipment until the loan is paid in full. This allows the lender to repossess the Equipment if the borrower fails to make his/her repayments, as opposed to having nothing if the loan was unsecured.
Because the lender holds the Equipment as security (on paper) until the loans is repaid in full usually the interest rate is lower than a unsecured
A secured loan allows the lender to take security of the Equipment until the loan is paid in full. This allows the lender to repossess the Equipment if the borrower fails to make his/her repayments, as opposed to having nothing if the loan was unsecured.
Because the lender holds the Equipment as security (on paper) until the loans is repaid in full usually the interest rate is lower than a unsecured
Loan terms that suits your budget:
Equipment loans are offered for terms between 1-5 years. If you have a small budget or want to purchase that one piece of equipment that will build your business, a longer term is advisable. The only down fall of a longer term is the amount of interest you pay over that time. Choose a term that suits your budget a financial situation!
Payments are set weekly/fortnightly/monthly you are able to repay the loan off sooner but beware of an early payment fee. Some lenders offer a replacement debt package saving you this fee!
Interest rates
The interest rate you are offered will depend upon the bank's criteria. This can include whether the loan is secured or unsecured and your personal credit worthiness. The more credit worthy you are or the greater your ability to repay the loan, the chances are better that you will be able to get a lower interest rate.
This is one of the best reasons to arrange your Equipment loan before finalising which piece Equipment you wish to buy. You may be offered a loan by the dealer at a much higher rate than you could have gotten by arranging your own loan.
Some lenders will be able to offer you a fixed interest or a variable interest rate. You should consider the length of the loan term and the interest rate environment before deciding. Both options have their benefits and pitfalls.
Lenders will quote an interest rate and a comparison interest rate. The comparison interest rate takes into account a typical loan and factors in the various fees that are payable. You should not only compare the interest rate but the fees involved as well. For example, the repayments for one loan with a lower interest rate may actually be more than a comparable loan with a higher interest rate but lower ongoing fees.
Fees
Lender recoup the set up cost of the loan from the client this is generally known as an establishment fee, other fees are.
%u2022 Rev's fee (to make sure the Equipment is not already financed)
%u2022 Monthly or ongoing fee
%u2022 Early termination fee
%u2022 Late payment fee
Applications made easy
We believe in no stress loans, how easy is this; a full application will take about ten minutes of your time and all by phone. The information we will require.
%u2022 Drivers Licence number and expiry date
%u2022 Where you live
%u2022 Who you work for
%u2022 How much you earn
%u2022 Do you have existing loans?( what you own/owe)
%u2022 Are you single or married
%u2022 Do you have children?
Our specialist finance consultants will then issue you with a preapproval; this will give you an idea of the amount you can borrow, whether you qualify, which lender we think is best suited to your requirements. To make this process even simpler we also offer an online application form. This form takes about 20 minutes to complete and once submitted you WILL get contacted within the next business hour!
Documents you will need to provide
You will need to provide proof of:
%u2022 Driver Licence and Medicare Card (front and back of your D/L please)
%u2022 2 x Most recent pay slips
Equipment loans are offered for terms between 1-5 years. If you have a small budget or want to purchase that one piece of equipment that will build your business, a longer term is advisable. The only down fall of a longer term is the amount of interest you pay over that time. Choose a term that suits your budget a financial situation!
Payments are set weekly/fortnightly/monthly you are able to repay the loan off sooner but beware of an early payment fee. Some lenders offer a replacement debt package saving you this fee!
Interest rates
The interest rate you are offered will depend upon the bank's criteria. This can include whether the loan is secured or unsecured and your personal credit worthiness. The more credit worthy you are or the greater your ability to repay the loan, the chances are better that you will be able to get a lower interest rate.
This is one of the best reasons to arrange your Equipment loan before finalising which piece Equipment you wish to buy. You may be offered a loan by the dealer at a much higher rate than you could have gotten by arranging your own loan.
Some lenders will be able to offer you a fixed interest or a variable interest rate. You should consider the length of the loan term and the interest rate environment before deciding. Both options have their benefits and pitfalls.
Lenders will quote an interest rate and a comparison interest rate. The comparison interest rate takes into account a typical loan and factors in the various fees that are payable. You should not only compare the interest rate but the fees involved as well. For example, the repayments for one loan with a lower interest rate may actually be more than a comparable loan with a higher interest rate but lower ongoing fees.
Fees
Lender recoup the set up cost of the loan from the client this is generally known as an establishment fee, other fees are.
%u2022 Rev's fee (to make sure the Equipment is not already financed)
%u2022 Monthly or ongoing fee
%u2022 Early termination fee
%u2022 Late payment fee
Applications made easy
We believe in no stress loans, how easy is this; a full application will take about ten minutes of your time and all by phone. The information we will require.
%u2022 Drivers Licence number and expiry date
%u2022 Where you live
%u2022 Who you work for
%u2022 How much you earn
%u2022 Do you have existing loans?( what you own/owe)
%u2022 Are you single or married
%u2022 Do you have children?
Our specialist finance consultants will then issue you with a preapproval; this will give you an idea of the amount you can borrow, whether you qualify, which lender we think is best suited to your requirements. To make this process even simpler we also offer an online application form. This form takes about 20 minutes to complete and once submitted you WILL get contacted within the next business hour!
Documents you will need to provide
You will need to provide proof of:
%u2022 Driver Licence and Medicare Card (front and back of your D/L please)
%u2022 2 x Most recent pay slips
by equipment-loan
equipment-loan
Hi, I'm a finance broker from Australia looking to help inform the general public on some of the information that I've picked up over the past 10 year... more »
- 0 featured lenses
- Winner of 2 trophies!
- Top lens »
Feeling creative?
Create a Lens!
Explore related pages
- Commercial Loan and Small Business Communications Articles Commercial Loan and Small Business Communications Articles
- how to improve your business how to improve your business
- Equipment Leasing & Financing Equipment Leasing & Financing
- Build Your Strong Business Credit History Build Your Strong Business Credit History
- Trade Show Booth Financing | Exhibit Leasing Trade Show Booth Financing | Exhibit Leasing
