Equipment Finance

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Buy or lease business equipment with RoadLoans

Sourcing the funds to pay for the purchase or lease of business equipment isn’t always straightforward, regardless of whether you’re buying inexpensive supplies or costly advanced machinery. That’s where RoadLoans comes in handy: we’re partnered with a range of reputable financiers who specialise in commercial finance solutions to help your business get approved.

With a straightforward application process and help from our trusted finance experts, you can have your new or used equipment deal signed, sealed and delivered in a matter of days from start to finish. You can get the ball rolling on your application with us today and have your business’ equipment needs covered fast.

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Help from expert consultants

Our consultants have decades of combined experience helping business owners like you secure top finance deals.

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Wide range of lenders

With a variety of specialist lenders on our panel, you’ll be in a great position to compare more options and potentially save more.

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Fast online application process

Don't worry about making unnecessary trips to sort out finance. Our speedy process is conducted online and over the phone.

The features and benefits of equipment finance

Finance 100% of its purchase price

There’s no need for you to put forward a deposit if you’re looking to buy equipment, as our lenders can approve you for the full price of purchasing it from your seller.

Low rates available

You can enjoy highly competitive interest rates and fees across our wide panel of finance partners, helping you secure the most affordable deal for your business.

Select a repayment term to suit you

Different businesses have different needs, so you can choose how long over which to pay for your finance agreement, ranging from 12 months up to five (lease) or seven (loan) years.

Diverse equipment types available

You can be approved to purchase a highly varied range of equipment, from industrial freezers and ovens to computers and other technology to heavy machinery and anything in between.

Optional residual payment for loans

On top of an optional deposit, you can also put down an optional residual payment as part of your loan agreement, which will help further reduce the cost of your ongoing payments.

More accurate budgeting with fixed payments

Because your finance deal’s repayments will be fixed from the outset of the agreement, you’ll know exactly how much you’ll have to set aside each month until the end of your business’ loan.

The equipment finance application process with RoadLoans

Bad Credit Car Loans Process

Get a quote and apply

First and foremost, tell us about you and your business and the finance you’re after with a quote. You can also fill out an application, which allows us to start comparing.

Discuss your options with your consultant

Once your consultant has compared your available options, they’ll return to you and tell you about the best and most affordable available to your business.

Sit back and have your form prepared

After you give the all-clear, your consultant will get to work submitting your formal loan application to your lender for approval in line with their requirements.

Get approved and own your equipment

If they’re happy, you’ll be sent a contract to sign and return before your loan funds can be advanced to your seller and you’ll be able to take ownership of your business equipment.

Equipment finance explained further

What equipment finance solutions are available to my business?

Equipment finance is merely one umbrella term for a variety of different finance options available to businesses looking to either buy or use equipment for commercial purposes. It’s important to understand the differences between these before you apply, as some may be better for your business than others. Your equipment finance options include:

Chattel mortgage

A chattel mortgage is essentially a loan to buy equipment. It works the same way as any other secured loan agreement: you apply for a loan to buy the equipment (for either some or all of its purchase price) and repay it over a pre-determined period between one and seven years. Your purchased equipment will also serve as collateral for the loan, meaning it’ll be required to meet your lender’s asset qualification criteria regarding age and condition.

Under this type of agreement, you’ll own your asset from the moment you buy it, meaning it’ll be included on your business’ balance sheet. Because you own the asset, you can use or modify it however you like (within reason, as your lender will still need it to hold value should it need to be resold). You can claim the interest on your repayments as tax deductions, as well as GST on the purchase price and depreciation of the asset.

Hire purchase

Hire purchase agreements are another option open to businesses looking to use or buy equipment. This is essentially a lease, whereby your lender owns the asset throughout your term as you gradually repay your debt and ownership is transferred to you at the conclusion of the agreement. This means that your business doesn’t own the asset for legal purposes and isn’t required to include it on its balance sheet.

This type of finance is generally more suitable for companies who conduct their accounting on an accrual basis, rather than a cash basis. While cash accounting records revenue and expenses the moment they’re received or paid, accrual accounting records these at the moment the transaction takes place. Hire purchases enable companies in this position to claim the GST on the purchase of their asset, which otherwise isn’t possible with a regular lease. This type of agreement also enables the claiming of interest and depreciation.

Finance lease

If you’re looking to lease a piece of equipment in the short term but eventually purchase it, you might look to a finance lease. This type of agreement essentially involves you renting your equipment from your lender for a set period, at the end of which you’ll be required to pay a residual in line with the ATO’s minimum requirements. The minimum required residual values for different term lengths are:

  • 12-month lease: 65.63%
  • 24-month lease: 56.25%
  • 36-month lease: 46.88%
  • 48-month lease: 37.5%
  • 60-month lease: 28.13%
 

At the end of the lease, you can do any of the following to pay your residual:

  • Pay out the residual and take ownership of the asset
  • Sell the equipment to cover the cost of the residual
  • Trade in the equipment for a newer asset and take out a new finance lease
  • Refinance the residual to extend your lease and continue the current lease

Operating lease

Operating leases are different from finance leases in several key areas. While the risk of obsolescence falls to you under a finance lease, this isn’t the case with an operating lease. These come without any residual value to pay and only require you to pay for the cost of renting it across your agreement before you can hand it back at the conclusion of the lease. Also, while all maintenance and on-road costs are required to be sorted by the business under a finance lease, these are all arranged for you with an operating lease, resulting in a higher payment but less time invested in organising these costs yourself.

How does my business qualify for equipment finance?

There are several key areas which you’ll be required to meet as part of your lender’s eligibility requirements for businesses. While they may differ from lender to lender, the main points to meet are:

  • You must have at least two years of trading under an active ABN
  • You must have a minimum monthly turnover of $5,000
  • You must be at least 18 years old and an Australian citizen or permanent resident

It’s important to note that we can still help find solutions for businesses which have been in operation for closer to 12 months and even those at a minimum of six months (if you’ve been working in the same industry for a while before starting your business).

In terms of the documents required for your application, you’ll be required to produce the following:

  • ABN and GST registration
  • Two years’ worth of tax returns
  • Information on regular expenses such as rent
  • Personal ID such as a driver’s licence

However, if your business is in a position where you’re unable to produce any tax returns, we can still help you out. You can turn to either low doc or lite doc finance, which both utilise alternative documents to help you qualify for your equipment finance. These can include business bank statements, Business Activity Statements (BAS) and an income declaration signed by your accountant. Speak with your RoadLoans consultant today: we can help businesses of all shapes and sizes access the financing they need.

More of your equipment finance questions answered

As mentioned, there’s a wide range of different equipment types which you can buy or lease. These include:

  • Car finance
  • Van, bus and truck finance
  • Finance for tractors and other agricultural equipment
  • Forklifts, excavators and other construction equipment
  • Computers and computer systems
  • Healthcare equipment
  • Boat and marine vessel finance

This depends on several variables, such as your business’ financial situation, the lender you choose to go with and how long it takes to find the equipment you’re looking to finance. However, you can have your application approved and settled in as few as 48 hours after you first apply with us. We work to have your application processed as quickly as possible so your business can gain access to the asset you need.

No – business loans generally don’t come with a maximum amount, as this will depend almost entirely on the value of the asset you’re purchasing and your business’ ability to support repayments comfortably across your chosen term. For instance, if your business is generating $10,000 in revenue each month, you won’t be approved for a loan with repayments of $10,000 or more.

Yes – if your business is in a better financial position or you come across a better, more suitable deal while you’re still repaying your existing loan, you’ll be able to switch to a new loan either with your current or a new lender. However, it’s important to bear in mind that you may be required to pay an early repayment fee for closing out your original agreement before its scheduled end date, so make sure it’s worth it before proceeding.

Yes – comfortably and consistently supporting your business’ loan or lease payments will go down as positive reporting on its credit report, which can not only increase its score but also make it easier to access similar finance in the future.

No – with RoadLoans, we can help you find the right equipment for your business’ needs, regardless of whether it’s located in your city or halfway across the country.