You are currently viewing why you need to consider equipment finance secrets

why you need to consider equipment finance secrets

Investing and expanding your business with equipment upgrades doesn’t have to be out of reach. Your business can have the required equipment and use it for the overall expansion of the business There are many types of financing terms for equipment and supplies, and it can be difficult to find the best one. An equipment finance broker uses their knowledge to compare, customize and process the best deals for your specific situation, regardless of your business. Equipment financing brokers will assist you in the equipment financing application process and will have access to a wide range of suppliers and products, giving you access to the best options, advice and services. 

In many industries, equipment is essential for business operations. In the construction industry, if you don’t have access to trucks, bulldozers, excavators, and forklifts, getting a job done for a paying customer can be very difficult. How do you transport your products to the location? While you can rent for a short time, the cost of renting the equipment adds up very quickly. Likewise, it would be difficult for you as a dentist to work without the proper medical equipment to effectively treat your patients. How would you safely and legally treat patients without well-maintained medical equipment that meets Australian standards? Equipment can be expensive to buy, maintain, and repair. As a business owner, you want to spend most of your time serving your customers as it will bring money into the business. The time it takes to inspect equipment can seem daunting, but we are here to tell you that it is a necessary investment of time and it is possible to fund equipment purchases in an inexpensive manner. 

In the future, this may mean hiring jobs that were previously denied you due to high order volumes or special equipment. The more jobs you can take, the more money you have in the business. The longer, the more diverse the jobs, the greater your customer base and the greater the chance of repetitive work and verbal recommendations.

With equipment financing, you get a secured loan to buy the equipment, and the equipment serves as collateral (also called “security”) for the loan. For example, when you take out a mortgage on a house, you buy a house with the house as the criterion for the loan. Since some form of security has been added to the loan, the risk to the borrower is lower, as is the interest rate. The advantage of equipment financing is that the lender can repay the equipment when you take out the loan, which means that the interest rates are significantly lower than if you had taken out an unsecured loan to purchase equipment.

Ding Financial have particularly deep knowledge and experience with yellow and civil equipment finance. Our specialised brokers seem to have developed unique relationships with lenders in their professions, offering an easier application process and unique product and equipment advice.

Leave a Reply