As your company and business grows and develops, the need for new equipment can be an important consideration. You may also find expenses over and above your normal business operational costs and increased business development costs. Costs of purchasing or replacing equipment and associated expenses can often be covered by Equipment Loans Melbourne and Lending Specialists has access to industry experts who provide these types of finance.
Here’s what you need to Know about Equipment Loans Melbourne
An Equipment Loan is a loan agreement where you can borrow funds to purchase equipment for your office or business. In many cases, equipment loans are easier than other forms of financing because the asset to be acquired is the collateral. Equipment Loans also have the benefit of having low obsolescence for most equipment. Equipment loans can also be more suitable for the long term compared to an equipment lease because after making the down payment, you will gain the ownership of the assets purchased and you may have the future flexibility to utilize received equity to leverage capital when necessary.
Equipment Loans can vary depending on the terms of the borrowing amount and can also include financing of business vehicles, computers and technological equipment, tools, furniture and lighting fixtures. Your loan amounts will depend on the cost of the equipment purchased and on the firm’s historical and projected revenues and cash flow.
If you are confused about the difference between Equipment Loans and Equipment Leases, here they are:
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Equipment Lease |
Equipment Loans Melbourne |
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Payment Terms |
Leases involve the payment of rent over a set period of time. |
The Borrower repays an advance of funds with interest over a specific period of time. |
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Down Payment Requirements |
Lease finances a hundred percent of the value of the equipment expected to be used during the lease term. |
Equipment Loans usually require a down-payment and finances the remaining cost of the equipment. |
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Collateral Requirements |
Leased equipment usually reserves as the collateral needed to secure the transaction. |
Depending on the worth of the credit of the customer, an Equipment Loan may require the customer to pledge fixed assets for collateral. |
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Terms of Ownership of Equipment |
The customer has a right to purchase the equipment at the end of the lease or during the lease term, but the lease provider holds the legal title. |
The borrower will have the ability to hold the legal title to the equipment. |
Lending Specialists offers many different kinds of loans including Home Loans, Investment Home Loans, Commercial Loans, Business Loans, Self-Managed Superannuation Fund Loans and Vehicle and Equipment Loans Melbourne .
If you have any questions or would like to discuss further about the equipment loans Melbourne,
please do not hesitate to contact Lending Specialist Melbourne on (03)8805-1800 or email barry@lendingspecialists.com.au.
