Equipment Finance

If you’re looking to buy new vehicles, equipment or technology, we can help you preserve your capital and manage your cash flow.

At Fintech Hub, our partnership with a diverse panel of lenders enables us to assist you with an extensive range of equipment finance solutions to all kinds of businesses right across Australia. With tailored product offers, the finance companies support a broad range of industries from individual pieces of equipment to complete fit-outs. From IT equipment and telecommunications, to printing presses and earth-moving machinery, or even a commercial kitchen fit-out, the finance company can put together a finance package that’s just right for your business.

Our lending specialists will look at your existing finance or tailor new equipment finance for your business, helping you preserve capital and better manage your cash flow.

Finding the right equipment is essential to the success of your business.

Buying a piece of equipment outright is an option but there is a downside to this depending on the nature of your business. It takes up your cash flow, clutter your balance sheet with depreciating assets, and leave you without the funds to dedicate to other areas to grow your business. Ongoing maintenance can also have an impact on your hip pocket.

Equipment finance can free up your capital to use in other areas of the business such as wages, marketing, hiring etc and allow you to budget more effectively. The facility also provides the luxury of replacing obsolete or faulty equipment if required.

Three of the most commonly used equipment finance options are listed below. The guide should assist you in choosing the right solution that best fits your business. If you are still unsure and would like to discuss with our specialist finance consultant; Enquire Now

An operating lease is an agreement between you and the lender to rent equipment for use for a fixed period. At the end of the lease you have the option to buy the equipment at an agreed price, return it, renew your existing agreement, or start a new one with new products. You can also upgrade during the term of the agreement.

Features include:

• Most depreciable assets can be financed
• Terms range from two to five years
• $10,000 minimum operating lease amount
• Simple application process
• Repayments fixed for contract term

Benefits

• Provides 100 per cent of funds, allowing you to preserve your working capital
• Provides access to the latest equipment and technology without associated ownership risks
• Guards against obsolete equipment and offers the flexibility to respond to changing market demands
• Lease rental payments may be off balance sheet, providing scope to improve business performance ratios (e.g., return on assets)
• Rental payments may be tax deductible if you use the asset to generate income
• May be able to claim input tax credit for rental and other charges that are subject to GST 

A finance lease is where the lender purchases the goods for you as the financier, then you pay the lender for their use. You have the security of predictable monthly payments and a known residual (balloon) at the end of the term.

• No capital outlay: easy on your cash flow
• Payments are typically 100% tax-deductible
• Flexible terms: 24-60 months
• Certainty around end-of-term costs
• Simple & easy approval process

With a chattel mortgage, you buy the equipment funded by a loan from the finance company. The lender retains a charge over the equipment (much like a mortgage on a home) and you have full use of it over the term - it's yours. When your last repayment is made, the lender releases the charge over the equipment.

Ownership starts from the beginning of the contract, so you can deduct the depreciation of the goods, as well as the interest component of the payments. GST can also be claimed back in full in first BAS.

• No GST added to interest component of repayments
• Depreciation and interest are tax-deductible
• Balloon and deposit options to decrease monthly payments
• No capital outlay: easy on your cash flow
• Flexible terms: 24-60 months
• Simple & easy approval process

As the taxation and accounting treatments of various finance products may vary, we recommend you seek independent expert advice before choosing an option.