Uses of Equipment Finance
Equipping your business with the right tools is crucial for growth. Credit One’s Equipment Finance is suitable for businesses of all sizes to get the necessary funds for various equipment needs — from heavy machinery to specialised technology such as:
- Farm equipment — tractors, combine harvesters, livestock handling equipment
- Construction machinery — excavators, bulldozers, cranes, generators, power tools
- Mining equipment — production drills, haul trucks, conveyor belts
These heavy-duty equipment often require high capital to acquire, which your business may not be able to spare. Equipment finance provides an avenue for your business to obtain the necessary equipment to boost your operative capacity while making manageable loan repayments over time.
How Does Equipment Finance Work?
Applying for equipment financing with Credit One is both quick and straightforward, offering an easier process than applying for a traditional loan. Here's what you can expect:
1. Check your business’s eligibility
We understand every business is unique, so eligibility requirements can vary. Use our online tool to gauge your eligibility instantly, so you can focus on your equipment research and selection.
2. Calculate your required loan amount
Total up the estimated funds you will need to purchase your desired equipment. This will allow us to help you find a financing option from our network of approved lenders that is tailored to your needs.
3. Apply online
After deciding on an ideal loan plan, you can lodge the loan application with us. Our brokers will quickly process the application on your behalf with the respective lender(s).
4. Receive your funds
Once the application has been approved, we will transfer the loan amount to your business accounts. Depending on the application, you can receive the funds as soon as the same day of application.
5. Purchase your equipment
With the necessary funds, your business can proceed to make the necessary equipment purchases. Your business will be required to make repayments according to the terms of the loan.
How Commercial Equipment Finance Differs from Leasing
Making the right call on equipment acquisition can impact your cash flow and future options. Equipment financing and leasing solutions are both viable options for companies looking to obtain the resources they need without significant upfront capital.
Financing allows you to purchase equipment outright with manageable monthly payments. This option provides ownership and future use potential, but may leave you with outdated equipment or different tax implications compared to leasing.
Leasing, on the other hand, enables companies to get temporary access to equipment for a fixed period with set payments, much like a rental situation. This often requires no upfront costs and caters to temporary needs, but it can be more expensive than owning in the long run and you won't own the equipment afterward.
Both options have their own merits and considerations that may be better suited for different business circumstances. At Credit One, our brokers can help you compare them based on your specific budget, growth plans, and equipment needs to find a solution that best fits your needs.
