Your number one choice for equipment finance in Newcastle
Paying more than 3% on your home loan? Get a better rate
What are business equipment loans?
New equipment (like construction equipment and farm machinery) can help businesses improve their productivity and product quality, or even streamline operations while keeping up with ever-evolving industry standards.
However, frequent equipment purchases often require a large investment. An equipment loan can often help cover the costs of new machinery, vehicles, tools and equipment if your current business doesn’t have the funds to cover the costs.
An equipment loan (or business finance) is a popular financing option for businesses that need new equipment. Nine times out of 10, the returns from new equipment are used to cover the loan’s monthly repayments.
Equipment loans can often give you more flexibility, ensuring your business can grow and advance.
Compared to secured loans from the bank, equipment loans are not as complex — with a traditional bank loan, you need to pledge your assets as collateral.
At Watson Mortgages, we strive to find equipment finance in Newcastle to help advance your business, effectively and more efficiently. For more information about business loan options, get in touch with our team of professional brokers today.
What are the advantages of equipment finance in Newcastle?
We’re committed to making business management efficient and affordable. Via an equipment loan in Newcastle, you’ll find:
- You can manage your cash flow better (41% of businesses have closed their doors due to inadequate cash flow — why take the risk?)
- Start-up capital — you might have a strong business plan, but no money to make it happen. This is a finance option that can kickstart your business.
- Keep your business up to date — 33% of businesses go under due to poor financial control. Business loans will ensure you keep on top of your game.
- Eliminate the risk of ownership — if your business is just starting out, you can lease your equipment for extra cash flow.
- Professional advice — if you’re not confident with your finances, you can always talk to the team at Watson Mortgages. We can provide professional recommendations and advice to make business management more cost-efficient.
Contact us to discuss your equipment finance options today. We’ll compare lenders and interest rates, explain the lending criteria, and find a great equipment finance option for your business.
Elements to consider for equipment financing in Newcastle
Almost all businesses need to spend money on equipment — even if it’s for simpler things like computers, tablets and smartphones. It is important to consider how to pay for it and what will serve you in the long run.
Here are some elements to consider when applying for equipment financing in Newcastle.
- Will the equipment be useful long-term or short-term? You will need to consider the useful life of the equipment you’re thinking of buying. Technology is always improving and changing which means you may need to think about the latest and greatest innovations — will your purchase go the distance, or become obsolete in a few short years?
- Will the equipment cover the costs? You will need to consider how long it will take before the equipment you’re purchasing will cover the costs (or just break even). If it’s the latest innovation in your industry, the costs may be covered in a short amount of time. With this in mind, looking for the latest technologies is always recommended.
- Should you buy or lease?Buying is usually the least complex method for a business owner. The commercial equipment is yours, and you can depreciate the value over the loan term. The only downside is that this can reduce your cash flow — we recommend talking to our accountants and mortgage brokers before making a big decision.
- Should you commit to equipment financing in Newcastle? If you’re considering investing in large-scale equipment where the initial cost exceeds your normal cash flow, equipment financing may be the better option. It is also a better option if you’re looking to replace existing technologies that are now obsolete.
As always, we recommend speaking to an accountant or mortgage broker to ensure you get value for money. Contact us at (02) 4018 7505 for professional recommendations and advice.
Contact Watson Mortgages for an obligation-free consultation
Frequently asked questions
What types of equipment can I purchase with an equipment loan?
Established businesses can purchase or upgrade equipment like:
- Heavy equipment (e.g. manufacturing, construction and farm machinery)
- Industrial kitchen equipment
- Shop fit-outs
- Technologies like computers, laptops, phones, tablets and specialised technologies
Vehicles, including forklifts, vans, a single business car or a fleet of cars (this may come under vehicle finance).
Based on your business needs, we will find a lender to cover your equipment costs in a lump sum. Our mortgage brokers will compare hundreds of banks to determine which supplier meets your needs, then provide recommendations and advice to ensure you get the most out of your equipment loan in Newcastle.
Who can apply for an equipment loan?
You can apply for equipment financing if you are:
– Aged over 18 years
– Eligible to work in Australia
– An individual, sole trader, sole owner of a company or someone authorised to apply for finance/credit for a business
– Financing equipment that will be used by a business for business purposes
– A business that has been trading for more than 12 months
– A business with a good credit rating and not going through bankruptcy.
What are the tax implications of buying vs financing?
The decision to buy vs finance will depend on your conversations with your accountant or mortgage broker. For sole traders and small businesses, the Australian Tax Office (ATO) has an expenses calculator that could help you work out tax deductions for your expenses. Otherwise, we recommend seeking independent tax advice about buying vs financing before deciding.
We have close relationships with local accountants and financial planners who can help you make this decision. For more information, please contact our team on (02) 4018 7505. We can connect you with local professionals.
Can I finance second-hand equipment?
Yes, you can get equipment finance in Newcastle for second-hand equipment, but the equipment’s age and class may impact the loan’s term and structure. For more information, please contact us on (02) 4018 7505.
What should I do if the equipment supplier requires progress payments?
If the equipment you want to finance is under construction, Construction Funding is possible under certain circumstances (similar to a new home build). Once the construction of the equipment is complete, this can be transferred into an equipment loan. This will help preserve cash flow considering the equipment hasn’t been built and delivered.
What is covered by an equipment loan?
It depends on the lender we recommend but most lenders can cover vehicles, heavy vehicles, agricultural equipment, construction/access equipment and other equipment like computers, fit-outs and manufacturing. Our mortgage brokers will compare hundreds of banks to determine which supplier meets your needs, then provide recommendations and advice to ensure you get the most out of your equipment loan in Newcastle.
Do equipment loans require a deposit?
It depends on the scale of your business and the kind of equipment you need; however, an accountant and mortgage broker can guide you in the right direction (e.g. secured vs unsecured loans and easy equipment loan repayments).
How do I know what kind of equipment loan suits me?
It depends on the scale of your business and the kind of equipment you need, however, an accountant and mortgage broker can help guide you in the right direction. Our team of mortgage brokers scour through hundreds of banks and lenders in Australia to determine the possible options for you — plus, we have close relationships with accountants and financial planners in the local area. We can find an option for you in Newcastle, the Hunter Valley, the Central Coast or Greater Australia to ensure you get a loan that suits your needs.