Machinery and Equipment Finance for your Business Print

Borrowing money to purchase Machinery and Equipment

Machinery Finance or Equipment Finance lets business owners acquire motor vehicles and business equipment quickly, with minimum outlay of funds.

Technically, when all payments are made to the finance provider and all outstanding amounts are cleared, title to the goods will
pass to the hirer.


Hire Purchase can be very flexible in its application. The customer can pay a deposit, and the repayment arrangements can be
structured to suit the customer's cash flow.

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machine and business loan finance

Features Benefits
The finance provider recognizes that lessees needs vary widely. Repayment schedules are flexible, and can be structured to suit the customer's cash flow. Customers can match repayments to suit their seasonal cash flow. Many customers can pay their lease rentals when they have the income available, rather than meet regular monthly installments.
Hire Purchase can be arranged with no deposit or an amount that suits the customer.
'Balloon' payments at the end of the term can be arranged. They are similar to the residual value of a lease. Balloons are payable on completion date of the contract. The balloon figure is determined by the amount financed, the nature of the goods and the length of the term. The customer can pay lower installments during the term of the contract, then pay the larger 'balloon' payment at the end of the contract if it suits his/her financial situation. There is a contractual obligation to repay the balloon repayment if it is included in the agreement.
The finance provider owns the goods until the end of the term. The customer gains automatic ownership & title on making the final payment. The customer does not have to return the goods to the finance provider as with a lease agreement. This suits customers buying chattels with a long effective life, which they intend to keep.
A Hire Purchase may provide tax benefits as the financial goods are used to produce assessable income. Both depreciation and the interest component of the repayments may be able to be claimed on income tax. Customers may be able to make use of the taxation benefits of hiring. The financier can provide the customer with the total amount of interest paid in each financial year allowing for efficient calculating.
Customers have the option of paying monthly, quarterly, half yearly, yearly or irregularly. This is set up at quoting/application stage and clearly documented in the contract for the customer's reference. This allows accurate capital budgeting because the customer is aware of the repayments they will incur during the entire term of the contract. Customers can negotiate higher or lower repayments in line with seasonal cash flow variations.

Apply today!