Equipment Finance

Whether you’re embarking on a new self-employment journey or managing an established business experiencing robust growth, the need for new equipment is inevitable. At Novo Business Solutions, we specialize in identifying the best financing options for your equipment needs—be it espresso machines for cafés or the latest vehicles for business operations.

Equipment Finance is a loan type secured by the asset itself, such as cars, trucks, trailers, agricultural machinery, or industrial equipment. Lenders offer various equipment finance solutions tailored to the borrower’s profile and the specific equipment type being financed.

Types Of Equipment Finance

Operating lease/Rental

An Operating Lease allows you to use a vehicle for a set term and mileage with all operational costs covered (excluding fuel and tolls). At the end of the term, you simply return the vehicle without any obligation to purchase it, as the leasing company retains ownership. This setup includes straightforward monthly payments and detailed monthly reports from the Lease Packaging company, making it an effective option for businesses managing multiple vehicles. Financially, payments are typically treated as operating expenses and do not appear as liabilities on your balance sheet. Read More

Finance Leases

A Finance Lease enables you to utilize various types of commercial equipment without owning them. The lender purchases the equipment and leases it to you for an agreed period, ideal for businesses that prefer not to deal with the responsibilities of ownership or disposal of equipment.

Chattel Mortgage

Under a Chattel Mortgage, you purchase an asset while the finance company provides the funds and secures their interest via a "mortgage" on the Personal Property Security Register (PPSR). The borrower retains ownership throughout the term, and upon completing all payments, the finance company releases their interest.

Novated and Business Vehicle Leases

Novated leasing is a popular option for financing commercial vehicles for both your business and employees. Payments are made from pre-tax salaries, reducing taxable income and tax liabilities.

Commercial Hire Purchases

Similar to finance leases, Commercial Hire Purchases allow your business to take ownership of the asset at the end of the lease term, often resulting in higher payments throughout the period. This option suits businesses planning to continue using the equipment post-lease.Read More.

Sale and Leaseback Agreements

A Sale and Leaseback Agreement allows your business to free up working capital by selling owned equipment to a lender who then leases it back for a specified period. This strategy provides immediate capital infusion while retaining the equipment's use and shifting ownership risks such as maintenance to the lender.

Support your business’s growth

Equipment finance minimizes the initial capital outlay required to acquire new commercial assets, allowing you to spread the cost over time. If you opt for a chattel mortgage, you benefit from no GST on the repayments and immediate ownership of the asset from the beginning of the loan term.

Potential tax benefits

Most businesses can claim input tax credits for the GST included in the purchase price of the equipment. Additionally, depreciation and interest expenses on the equipment may be tax-deductible, enhancing the financial appeal of equipment finance.

Immediate access to the latest equipment

Utilizing the most current technology can significantly enhance your business's operational efficiency and competitiveness. Equipment finance provides immediate access to the latest equipment, crucial for maintaining an edge in a fast-moving business environment.

Eliminate the risk of ownership

Owning expensive equipment can lead to additional costs such as depreciation, maintenance, and repairs. Equipment leasing offers a predictable expense structure, with the flexibility to either take ownership or return the asset at the end of the lease term, mitigating the risks associated with ownership.

Get In Touch

At Novo Business Solutions we have access to lenders and individuals who deal in private lending. So if you are either looking to borrow or know more about private funding, then contact us.