Equipment Finance

Protect your Working Capital by accessing Plant and Equipment Finance

Buying the Plant, Equipment, Machinery or Vehicles your business needs to operate need not diminish Working Capital reserves.  Curtis Financial will help you determine whether it’s in the best interests of your business to use capital or take out Equipment Finance for your purchase.  If you decide on a loan, we’ll find the best deal for your business circumstances.

What is the best type Plant & Equipment Finance?

Horses for courses.  There are many different types of Equipment Finance products on the market and we’ve focussed on the four most common types here:

  • Finance Lease
  • Commercial Hire Purchase
  • Chattel Mortgage
  • Equipment Rental (also known as an Operating Lease)

Leasing arrangements – Finance Lease or Equipment Rental – finance the full cost of equipment being purchased.  Commercial Hire Purchase and Chattel Mortgages permit financing either part or all of the cost of equipment being purchased.

Loan periods are usually in the range of 1 to 7 years, however longer terms can sometimes be negotiated with lenders, depending on circumstances.

Click on the links above for more detail on each product.  Contact Curtis Financial on 0400 897 221 if you have any questions.

Finance Lease – who owns the equipment?

The lender – always!  A Finance Lease requires the lender to purchase the vehicle or equipment on your behalf.  You then pay rental instalments to the lender in order to use the equipment.  When you’ve finished using the equipment, it is returned to the lender.

For further information on Finance Leasing, contact Curtis Financial on 0400 897 221 .

Commercial Hire Purchase – who owns the equipment?

During the term of the loan – the lender.  Once your final loan repayment has been received by the lender, ownership of the vehicle or equipment transfers to your company.  That’s the main difference between Commercial Hire Purchase and a Finance Lease.

A Commercial Hire Purchase agreement is an arrangement between your company and the lender to purchase goods over an agreed loan term.  The agreement gives your company (hirer) possession of the equipment in return for regular payments to the lender (owner).

For further information on Commercial Hire Purchase, contact Curtis Financial on 0400 897 221 .

Chattel Mortgage – who owns the equipment?

Your company – immediately on purchase!  The asset – plant, equipment, machinery or vehicle – is then used as security for the loan.  Chattel Mortgages operate in much the same way as a traditional ‘car loan’ from a bank.

For further information on Commercial Hire Purchase, contact Curtis Financial on 0400 897 221 .

Equipment Rental (Operating Lease) – who owns the equipment?

The lender, at all times.  Equipment Rental, commonly known as Operating Leases, is an agreement to rent equipment without incurring the liability of any residual value at the end of the loan term.  At the end of the leasing term, the equipment is handed back to the leasing company (lender).  This can be a very efficient strategy for any business with a requirement to continually upgrade equipment.

For further information on Equipment Rental, contact Curtis Financial on 0400 897 221 .

Which is the right type of Equipment Finance for your business?

We’ve outlined the four main types of Plant & Equipment Finance here, but there are others that could be considered.

Tax and GST implications can vary according to loan type, as can the types of equipment which can be financed.  Curtis Financial works closely with your Accountant to ensure you get the right type of Equipment Finance for your business requirements and circumstances.

Discussing your particular situation with an experienced loans professional will highlight the pros and cons of various Equipment Finance options, putting you in position to make an informed choice.

Contact Curtis Financial on 0400 897 221 to assess your best options for Plant & Equipment Finance.