Best Equipment Loans & Finance in Australia 2021
If your small business needs to financing heavy machinery, large pieces of equipment, medical devices, or even private cars, then you have come to the right place. We have listed the best equipment financing options for small businesses in Australia right below this paragraph! Equipment loans are extremely popular in Australia because a relative high amount of businesses are in the construction industry, and also because of the high costs of machines in comparison to the moderate cash-flow small businesses normally have.
Equipment Loans: The Base Figures
|Loan Type||Securities||Terms||Avg Loan Size||Estimated Interest Rate|
|Equipment Loan / Finance||Equipment||1-7 years||$100,000||1.6%-15%|
Best Equipment Finance Companies
As Rated by our Editors
What Kind of Equipment Loans do These Companies Provide?
The nature of the lenders on this page is that they are happy to finance small businesses meeting their criteria for any purpose. It may be for working capital, equipment, paying taxes or any other purpose. That means that all of the following forms of financing are readily available to the business owner.
Popular Sectors for Equipment Loan Applications
- Medical and Dental equipment financing
- Heavy and mining equipment financing
- Commercial equipment finance
- Used equipment financing
- IT equipment financing
- Dental equipment finance
- Fitness equipment financing
- Business vehicle financing
- Construction equipment loan
- Forestry equipment financing
- Church equipment financing
- Brewery equipment leasing
- Mining equipment financing
- …any business asset financing
What Makes These Lenders Particularly Apt for Small Business?
When it comes to the best equipment loans, whether it may be church equipment, brewery equipment or medical equipment, you normally need that equipment promptly. Our survey has shown that in many of the cases that small business in Australia are in need of financing, they need to replace an item that has been put out of use. If you are a small business in Australia and your salesman’s vehicle has totaled, you need a quick replacement and it is likely you won’t have enough free cash to afford it without some sort of financing. Banks are slow, and online lenders are quick.
What does quick actually mean in this context?
a) Apply online within minutes (you can even send a multiple application to several lenders via Become.co)
b) Get a response typically within 24h. Some lenders even go above and beyond and get back to you within an hour if this is in business hours.
c) After agreeing to the terms of the loans, money is in the bank instantly.
Your construction equipment can be purchased within a week!
Equipment Loans or Equipment Leasing?
Leasing equipment is another form of financing. In the same fashion that you’ll get a lump of cash from a lender destined to purchase equipment through that funding, you could also lease your equipment and pay for it in instalments.
Business finance come in three main ways:
- Debt financing – one-off borrowing, repaying a fixed amount over time.
- Equity financing – sell a portion of your equity for financing.
- Combination financing – a combination of the above.
Leasing is something completely different – when you stop making payments you don’t owe the money but lose possession of the equipment you purchased.
There are pros and cons for traditional equipment loans and equipment leasing. Equipment loans may end up being cheaper in the sense that you will own the machinery and could resell it while equipment leasing can be more hassle-free, but they are riskier in a sense of losing a key equipment in your business if you miss out on a payment.
If you want to read more about this subject this is a pretty good and straightforward comparison.
Is Equipment Refinancing Available Too?
Australia’s online lenders are also keen on refinancing and consolidating debt. As long as a business is financially solid and these lenders’ algorithms point out that that business could handle repayments and not default, there should be no issue with refinancing an existing equipment loan.
In the same fashion a business could refinance any debt that was incurred by his business, it could refinance this type of debt too. It would be done for the same reason a business owner would refinance any debt – credit card, bank loan or a small business loan – to consolidate multiple loans into one AND/OR reduce payments by obtaining a lower interest loans AND/OR free up some cash for working capital.
Equipment Finance Calculator
One of the most common issues relating to business equipment loans is the repayment schedule. We have created a small nifty tool for your enjoyment to see how much you’ll be expected to repay your financing:
Invoice Financing for Equipment?
One plausible solution for your need for financing for equipment could be against unpaid invoices using invoice financing companies.
Equipment Financing: Final Words of Caution
Although the best – quick and easy – equipment financing lenders as the one we recommend can come in handy for your equipment loan needs – you MUST to pay good attention to the equipment repayment calculator we have positioned above to make sure you are indeed able to make all your payments on time. It’s simple – if you miss out on payments, the percentage of interest accrued over the lifetime of the equipment loan will increase. If more than just a few payments are missed, you might be interested in knowing how to refinance your loan. You can always check this small business loans provider comparison.