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Business Equipment Loans

All types of businesses occasionally need to spend money on new equipment if they want to continue providing their customers with the highest standards of service possible. Whether you are running a newly-opened retail outlet or a well-established manufacturing company, there will come a time when you have to consider replacing old equipment with new, in order to maintain efficiency and productivity across the board.

Equipment loans are the most obvious solution at times when major purchases are being considered but with so many different business loans for equipment available, how do you know which is best for your needs? The easiest way to ensure that you make the right choice when evaluating a loan for equipment is to enlist the help of an independent specialist. Let the team at Universal Finance help you to identify the perfect loan solution for your business.

We have been helping businesses across Australia to obtain competitive loans for equipment since 1999. As ASIC Credit Licensees and a full member of the Mortgage and Finance Association of Australia (MFAA), we are able to extend our credit services to companies in all areas of the country.

If you would like us to help you find the best business equipment loans for your specific requirements, call (03) 9088 8369 now. In the meantime, you can find more information about these types of loans below.

What Exactly Is a Business Equipment Loan?

A commercial equipment finance loan is a type of loan designed to help all types of companies obtain the equipment they need for their business activities. Newly formed companies often have to spend a substantial amount on equipment in order to meet their customers’ needs while more mature organisations will eventually reach a point where existing equipment needs to be upgraded or replaced. In order to maintain a healthy cash flow, most such companies elect to finance their purchases with an equipment loan for business purposes.

Equipment loans are sometimes also referred to as goods loans or chattel mortgages and they usually include the following terms and conditions:

  • The equipment is purchased directly by your business.
  • The equipment is owned by your business from the start.
  • The loan will be secured against the equipment.
  • Regular repayments are made until the loan is paid off.

Depending on the types of business loans for equipment you are considering, you may also come across loans that include a balloon payment at the end of the loan period. A balloon payment is a final payment made in one lump sum. The purpose of a balloon payment is to lower the monthly payments.

The interest rate on equipment loans for business will depend on a number of factors, including your company’s financial health, the amount you wish to borrow, the term (the time over which the payments are spread) of the loan in question and the equipment on which the loan is to be secured.

Pros and Cons of Equipment Loans

When compared to the alternatives – applying for an unsecured loan or taking money from your current account – equipment loans have much to recommend them:

  • Lower Interest Rates – Because your loan will be secured on the equipment that you purchase, you will be able to negotiate a more favourable rate of interest than would be possible with an unsecured loan. If you are confident in your company’s ability to make the repayments, a loan that is secured on the new equipment makes good sense.
  • Minimise the Impact on Your Cash Flow – If you try to finance your purchases with money from your business account, you may run into cash flow problems that are difficult to solve. With a loan for equipment on the other hand, you can spread the cost of your acquisitions over a number of years.
  • No Need to Risk Your Existing Assets – As we have already mentioned, equipment loans are secured on the equipment being purchased. This means you can access the more favourable interest rates associated with secured loans, without having to use your property or any other existing assets as collateral.

We firmly believe that a loan for equipment is often the best solution when a company needs to acquire new fixed assets but there are a couple of factors you should consider before applying for one:

  • You Will Be Making a Long-Term Commitment – If you take up a loan offer, you will receive the money you need to make your equipment purchases but you should also consider the repayments. You need to be sure that you will be able to make all of the payments on the agreed dates before you make a lasting commitment.
  • You Could Lose the Equipment if You Fail to Make the Payments – Business equipment loans are secured on the equipment being bought, which means that if you fail to make the repayments agreed with the lender, you could lose the equipment.

After evaluating the pros and cons for yourself, we are sure you will come to the same conclusion as our team of specialists: equipment loans are often the easiest and most convenient solution when funding for new capital asset purchases is required.

Universal Finance Equipment Loans

Thanks to our direct accreditations with more than a hundred lenders in Australia, we are able to find competitive loan packages for all types of commercial organisations and all types of equipment purchases. We are also able to quickly understand our customers’ needs, thanks to our long experience, which means you’ll find us very easy to talk to. From the moment you first contact us, through to the signing of your business equipment loan agreement, our team will be at your disposal, ready to provide you with any assistance or information that you may need.

If you would like more information about the various different types of equipment loans we can arrange or you would like to request a quotation, please don’t hesitate to call or message us right now.


How do I get a loan to buy equipment?

If you are ready to apply for a loan to buy new equipment for your business in Australia, we recommend using our quotation request form to get the ball rolling. Once we know a little about your circumstances and your requirements, we can help you to find a loan for equipment that represents a good deal for your business. If you are not sure how much you should borrow or encounter any difficulties when completing the form, please feel free to get in touch with us for personal assistance.

Is it difficult to get an equipment loan?

How difficult it is for you to obtain a business equipment loan will depend on several factors. These factors may include the type of equipment you wish to purchase, the total value of this equipment, the state of your company’s finances and the number of years over which you would like to spread the payments. However, we don’t just deal with prime lenders such as major banks and credit unions but with unconventional lenders and private investors too. Companies that have previously been unsuccessful when applying for loans are often able to find the credit they need with Universal Finance.

What size equipment loan can I obtain?

The sum you are able to borrow will also depend on a number of factors, including the type and value of the equipment you wish to buy, the state of your corporate cash flow and your projected turnover for future years. We have access to major lenders who are willing to offer very substantial business equipment loans to Australian companies; we also have access to smaller institutions that specialise in lower value loans. Whatever size loan you are looking for, we will help you to find a competitive deal.

Can the loan be used to buy new machinery?

Yes. A loan for equipment can be used to purchase any type of equipment that your company may require. Whether you need to invest in production machinery for a new factory or computer equipment for your offices, we can help you to find a willing lender. Some lenders may have their own preferences, with regard to the type of equipment they lend money for, but with our extensive network we are sure to be able to find a bank, credit union or private investor that can meet all of your needs.

Can I get an equipment loan if I have a bad credit history?

Companies and individuals with poor credit histories undoubtedly encounter more difficulties when attempting to borrow money for capital purchases. However, as a finance company with years of experience in the arrangement of bad credit loans, we are often able to help such customers find the business equipment loans they need. If you have a less than perfect credit history, please don’t let that stop you requesting a business loan quotation from Universal Finance right now. We will almost certainly be able to help you.