Why should I Finance Equipment?

Efficient use of cash flow is critical for all businesses. Assets, if purchased out right reduce cash flow in the year of purchase. The costs of borrowing may be reduced by tax deductions and you save further by paying with tomorrows dollars which are cheaper than today’s.

Which financier should I use?

It is vital the equipment is used as security and that equity in property and other business assets are preserved. Using a range of financiers and diversifying your source of funds is critical.

Do you provide finance for new start up business?

This is often possible. You will need to have a good business plan, preferably prepared with the help of your accountant and you will usually need to pay a deposit.

Can I pay out my contract early?

Yes. All financiers charge some penalty for early payout. The penalty varies with each financier and generally diminishes the further into the contract at the time of payout. Remember, you are agreeing to borrow money for a fixed term at a fixed interest rate.

What’s your interest rate?

The interest rate varies with many factors such as the amount borrowed, the reason for the loan and the financial position of the borrower. Interest rates may be calculated in different ways and comparing the percentages may be misleading. Concentrate on the repayments to assess a loan proposal because that is what is deducted from your bank account.

How long will my application take?

Once Lou has all the necessary information your application is usually submitted to a financier within 1 working day. Simple transactions are then assessed by a financier within 1-2 days. Complex transactions may take longer.

Can I finance goods I own already?

Once Lou has all the necessary information your application is usually submitted to a financier within 1 working day. Simple transactions are then assessed by a financier within 1-2 days. Complex transactions may take longer.

Can I finance second hand goods?

Yes, in most cases. It depends on the nature and age of the assets. The newer the asset is the better.

My financials are incomplete, can my business finance equipment?

Yes, for equipment up to $35,000. Ideally you have been in business for at least 2 years, a director owns property, you have clear Credit checks and a satisfactory business or credit reference. Approval may still be possible even if you don’t meet all of the 4 requirements listed.

Do I have to provide a directors guarantee?

Yes, unless the borrower is a public company or government department. Would you lend money to a business whose owners were not prepared to personally back their business? No, of course you wouldn’t and nor will any financier. If you won’t back your business with a personal guarantee then equipment finance is not for you.