Business Vehicle
and Equipment Finance

Are you looking to buy a new vehicle or piece of equipment for your business? Keeping your equipment up to date is a great idea. Whether machinery, vehicles, or hardware, your equipment can impact your business’ efficiency, public image, and workplace safety.

It’s no wonder businesses spend a huge proportion of their finances on upgrading and replacing equipment. Fortunately, business vehicle and equipment finance lets you take out a loan for assets that are used in the workplace. This means you don’t need to pull cash away from your working capital to make these all-important purchases.

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What Can you Finance with a
Vehicle and Equipment Loan

You can finance any commercial equipment or vehicles used by your business with a vehicle and equipment loan. The equipment must be used at least 50% of the time for business purposes and can upgrade or replace your existing equipment, or buy an entirely new vehicle or piece of equipment.

Business Vehicle Finance: can cover vehicles such as Cars, Vans, Utilities, Trucks, Trailers, and Buses.

Business Equipment Finance: can cover other assets such as Farming Equipment, Construction Equipment, Access Equipment, Computers, and other office hardware or software.

Get in Touch
With Us Today

At Loan Monster, we can help you find a vehicle and equipment loan to grow your business. Contact us today to find a vehicle and equipment finance solution that suits your business needs. Book an appointment to chat with our friendly team in Fremantle.

Have a chat with us today.

Vehicle and Equipment
Finance Solutions

When you’re looking to buy assets for your business, there are three vehicle and equipment finance options available: loan, lease, or hire. Each of these business loans lets you access the equipment you need immediately, with no need for you to withdraw from your day-to-day cash.

Lending criteria apply to all three options. Such as having an ABN, GST registered, and, in the case of an equipment loan, meeting an income threshold. You’ll also need to make sure you plan on using the vehicle or equipment mostly for business purposes.

Come have a chat about which financing option suits your business. We take the pain out of business loans and can help you find the best solution for your equipment and vehicle needs.

Goods Loan
(Chattel Mortgage)

The most popular type of vehicle and equipment finance is a loan, which can also be referred to as a goods loan or chattel mortgage.

To take out a goods loan, you’ll first need to source the vehicle or equipment you’d like to buy. This is then presented to the bank for approval. After the bank’s given you the all-clear, you’ll take out a loan to buy the approved vehicle or equipment, using the equipment itself as security against the loan. You’ll pay off the amount borrowed over the loan term, with a fixed or variable interest rate.

The major benefit of this type of equipment finance is that your business has ownership of the equipment or vehicle from the day it’s purchased, and you don’t spend working capital in the process. There are also potential tax benefits, as the interest and depreciation of the equipment are usually both tax deductible. We recommend speaking to your accountant for further information on tax benefits.

The lending criteria for a goods loan is that your business will need a valid ABN, be registered for GST, and meet a yearly cash flow requirement.

Finance
Lease

Another vehicle and equipment finance option is a lease, also known as a finance lease. Instead of taking out a loan to buy the equipment you’re after, the equipment is bought by the bank and leased to you for a set period. You never own the vehicle or equipment, but you have full use of it for a lease term that generally lasts between 12-60 months. At the end of your lease, you give the equipment to the bank. Equipment leasing is ideal for businesses using assets that depreciate rapidly or require expensive maintenance.

Leasing may be more expensive in the long term, but it generally requires lower loan repayments compared to buying equipment outright with a loan. This means it could be suitable for your business if you’ve got poor or inconsistent cash flow. Another benefit is that your monthly repayments are usually tax deductible. The lending criteria for a lease is that your business will need a valid ABN and be registered for GST.

Hire
(Hire Purchase)

Hiring, also known as hire purchase, is like a mix between a loan and a lease. Like an equipment loan, you source the equipment you require, and it’s approved by the bank. Like a lease, the bank buys the equipment on your behalf. You pay money to rent the equipment over a certain period of time while the bank has ownership of the item. Unlike a lease, however, your intention is to own the asset, and so you are essentially paying for it in instalments. At the end of the hire period, you pay a lump sum of the remainder owning to own the equipment outright, and ownership is transferred to you.

The benefits of a hire purchase are that the interest you pay and the depreciation of the asset that occurs are both generally tax-deductible. Like the other equipment finance options, eligibility for a hire purchase is dependent on your business having a valid ABN and be registered for GST.

Ask Us About
Vehicle and Equipment Finance

With so many financing options available, there’s no need to rely on a large deposit to buy or replace expensive, essential equipment for your workplace. At Loan Monster, we make equipment loans easy. Let us deal with banks on your behalf, so you can keep your attention focused on the important job of running your business. Request an appointment either online or with our brokers in Fremantle to get started today.

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