Everything You Need to Know About Asset Finance for Machinery

Understanding Asset Finance for Contractors

For contractors across Australia, having access to the right machinery and equipment is crucial for business success. Whether you're buying new equipment or upgrading existing equipment, Asset Finance provides a structured approach to funding these essential purchases without depleting your working capital.

Asset Finance allows businesses to acquire the tools they need while preserving cash flow for day-to-day operations. This financing solution covers a wide range of items including office equipment, work vehicles, specialised machinery, and heavy equipment such as excavators, tractors, graders, cranes, and dozers.

Types of Commercial Equipment Finance Available

Contractors have several finance options available when applying for Asset Finance:

• Chattel Mortgage: You own the equipment immediately while the lender holds it as collateral. This option often provides tax benefits and allows you to claim depreciation.

• Hire Purchase: You make fixed monthly repayments over the life of the lease, with ownership transferring at the end of the agreement.

• Operating Lease: Rent the equipment for a specified period with options to upgrade or return at lease end.

• Finance Lease: Similar to hire purchase but with different tax implications and end-of-lease options.

What Equipment Can Be Financed?

Asset Finance covers an extensive range of business equipment essential for contractors:

Heavy Machinery
• Excavators and mini excavators
• Tractors and agricultural equipment
• Graders and earthmoving equipment
• Cranes and lifting equipment
• Dozers and bulldozers

Commercial Vehicles
• Trucks and heavy vehicles
• Trailers and transportation equipment
• Utility vehicles and vans

Factory Machinery and Equipment
• Manufacturing equipment
• Processing machinery
• Industrial tools and equipment

The Application Process

Applying for Asset Finance involves a streamlined application process designed to assess your business needs and financial capacity. Lenders will typically evaluate:

1. Your business's financial position and cash flow
2. Credit history and trading record
3. The type and value of equipment being financed
4. Your ability to service the proposed repayments

The loan amount available will depend on these factors, along with the equipment's value and your business's overall financial strength.

Interest Rates and Repayment Terms

Interest rates for Asset Finance vary based on several factors including the type of equipment, loan amount, repayment term, and your business's risk profile. Fixed monthly repayments help you manage cashflow by providing certainty around your financial commitments.

Repayment terms typically range from one to seven years, depending on the equipment type and expected useful life. Heavy machinery like excavators or cranes may qualify for longer terms compared to vehicles or office equipment.

Benefits for Contractors

Asset Finance offers several advantages for contractors:

• Preserve working capital for operational expenses
• Potential tax benefits through depreciation claims
• Fixed repayment schedules aid in cash flow planning
• Ability to upgrade equipment at lease end
• Access to newer technology and more efficient machinery

Working with Finance Specialists

Secure Me Finance specialises in helping contractors access Asset Finance options from banks and lenders across Australia. Our team understands the unique requirements of contractors and can structure finance solutions that align with your business cycle and cash flow patterns.

We work with multiple lenders to find loan options that match your specific requirements, whether you need a truck for transportation, specialised machinery for construction projects, or factory machinery for manufacturing operations.

Having the right equipment is essential for contractor success, and Asset Finance provides a practical pathway to acquire necessary machinery while maintaining financial flexibility. By working with experienced finance specialists, you can access competitive rates and terms tailored to your business needs.

Call one of our team or book an appointment at a time that works for you to discuss your Asset Finance requirements and explore the options available for your business.