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Understanding Your Business Finance Options

Understanding Your Business Finance Options

When it comes to business finance options, things can often be confusing; however, we’ve put together this guide to help make things a little simpler to understand. Not only do we offer a vast range of options to suit all your finance requirements, we are proud to employ finance specialists who speak English, Mandarin, Japanese, Cantonese, Taiwanese, Serbian and Filipino, so we can assist you with all your business finance needs in a multitude of languages.

Equipment Rental

We specialise in rental finance for all businesses and across industries. There are many benefits to renting equipment when it comes to business finance. Renting equipment allows you to keep up with advances in technology that you can’t do as easily if you have to constantly buy new equipment.

Using equipment rental is one way that you can help to manage your business cash flow and gives you greater flexibility when it comes to owning equipment. There are many benefits to equipment rental:

  • You can update technology quickly as new items become available and avoid being hampered by obsolete technology.
  • Equipment rental offers you tax deductible payments.
  • You can ensure that you have a stable cash flow that isn’t eaten up by constantly purchasing the latest equipment.
  • You can consolidate all your equipment, installation, software, hardware, training and maintenance costs.
  • Fixed regular payments allow you to effectively budget and set affordable rates that are suitable for your company’s financial profile.
  • Equipment rental is available for a wide range of different types of equipment and assets.

Chattel Mortgage

You might not have heard of a chattel mortgage before, you may be more familiar with the term “equipment loan” but there are the same thing.  A chattel mortgage is a loan that is suitable for purchasing equipment and lets you take ownership of the equipment when they buy it. The mortgage element of the loan is where the equipment is used as the security for the loan.

Click here to find out more about our Equipment Chattel Mortgage or contact us for an obligation-free quote.

Novated Lease

A chattel mortgage isn’t the only form of finance that you can arrange for your business though; you may not be comfortable with securing a loan. Instead the idea of financing a loan using your monthly salary might be a much more appealing idea. A novated lease is ideal for people that have a salary package from their employer. This means that it comes down to the employer to pay off the finance lease.

Click here to find out more about our Novated Lease options or contact us on 1300 273 348

Finance Lease

A basic finance lease is a common option for helping to purchase equipment. The finance provider purchases the equipment and owns it. They then lease the equipment to you and you pay a fixed lease amount each month for a set number of months. When the lease period comes to an end, you then have the option of buying the equipment outright, re-financing the equipment of continuing the lease.

Click here to find out more about our Equipment Finance Leases or contact us for more information on info@creditone.com.au.

Equipment Operating Lease

One form of business finance that you might not have considered is the equipment operating lease. An equipment operating lease is nothing more than a simple rental agreement that helps you to avoid owning equipment.

Owning equipment may not be the most cost effective thing for your company; in fact the residual value liability may be detrimental to your company. Taking out an equipment operating lease means that you don’t acquire equipment as assets. Instead you are renting the equipment for a set period of time. Once the lease agreement ends, you simply return the equipment without anything further to pay.

This type of finance is only available for businesses. If you are trying to decide between an equipment operating lease and a finance lease, an operating lease has some advantages that include:

  • Working capital is maintained
  • All lease rentals are completely tax deductible if the equipment you have leased is being used to bring in taxable income.
  • There is no resale value risk.

You can also take out equipment operating leases to help with the maintenance costs of equipment including fuel costs and servicing, which can also help the cash flow of your business.

Click here to find out more about our Equipment Operating Lease options.

Equipment Commercial Hire Purchase

Finally, there is one other type of business finance option you might want to consider, and that is equipment commercial hire purchase. You may also know it as corporate hire purchase, CHP, hire purchase or offer to hire; but it is the same thing no matter what you call it.

This type of business finance is very common. If you took out this type of business finance, the financier would purchase the equipment on your behalf and then it would be hired back to you over a term that is set down as part of the agreement.

During this time, the equipment is owned by the financier, but you are able to use it. At the end of the term of the contract, you take on the ownership of the equipment. The total price of the equipment and interest charges have all been paid in full and you are free to do whatever you like with your equipment.

About Credit One

Credit One began in the late 1990s and sources suitable business and equipment finance solutions for clients throughout Australia and New Zealand. Whether you’re a sole trader looking to finance a business asset or an incorporated company sourcing an entire fleet, Credit One is the only name you need to know for all your commercial finance and insurance needs.

Our representatives are on hand, travelling across Australia to provide our customers with tailored business and equipment finance and are always happy to connect you with a business finance specialist in your area. So if you’re searching for a knowledgeable and reliable business partner to manage all your business finance and insurance needs, speak to the team who have been named Swann Insurance’s ‘Broker of the Year 2015’.

Contact us today on 1300 CREDIT (1300 273 348) to speak to an Equipment Finance Specialist or use our online finance quote tool to take advantage of our bank-beating rates and our wealth of finance experience.



Tags: Business Finance Options, Equipment Rental, Chattel Mortgage, Novated Lease, Finance Lease, Equipment Operating Lease, Commercial Hire Purchase, Credit One

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