Plant or Equipment finance is most commonly used by entities that wish to finance equipment that will be utilised within their business. It is a commercial loan product and can be structured as a Chattel Mortgage, Commercial Hire Purchase (CHP) or Finance Lease.
A variety of factors will need to be assessed by the financier to determine the strength of your application when applying for equipment finance. Due to the fact that the asset will be used for business purposes and in turn potentially generate profit for your business, the financiers may require cash flow projections to determine how much value the asset can provide to your business. This may be required along with company financials (Balance Sheet and Profit & Loss Statements). If financing through a company the director (or directors) may have to be listed as a guarantor. Individual documentation such as driver’s licences and individual application forms may need to be provided.
Generally due to the size of the financed amount associated with equipment finance and in order to obtain competitive rates, the financier will use the asset as security for the loan. Repayments can be structured to maximise tax benefits through your business. Please consult your accountant for financial advice as the financing options such as Chattel Mortgage or CHP may have different taxation ramifications then a Finance Lease.
Please see below various types of equipment that can be financed through this method:
Trucks, heavy commercial vehicles, buses, prime movers, tractors, bobcats, earthmoving equipment, industrial plant, computers, office equipment, medical equipment, farm equipment, machinery, agricultural equipment, building fit-outs, energy equipment, gym and fitness equipment just to name a few.
We have access to a variety of lenders that can offer very competitive rates for equipment finance. To enquire please fill out an enquiry form to the right and one of our expert consultants will be in touch.