6 tips to get your business kitted out with the right equipment

Published on November 19th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Invest in quality equipment while maintaining cash flow

It is vital that you choose a finance method that will be able to sustain the upgrading of your equipment when needed. Commercial loans come with flexible terms that allow you to upgrade your equipment, especially if you are planning to protect your cash flow for emergencies. However, be sure to check your loan features to see if it comes with features that are suitable for your business.

Options that come with no restrictions

Choosing equipment finance that comes with no restrictions can be beneficial to many businesses that plan on purchasing various equipment. It also means to check the minimum and maximum amount that you are allowed to borrow.

Choose a loan option that comes with flexible repayments

Not all businesses operate throughout the year which is something business owners have to consider when looking for financing options to purchase equipment. Always remember to ask your lender or banker about the repayment options. Most lenders will have the option of you paying weekly, fortnightly, or monthly to make repayments. However, there are some lenders that are also to set up a loan that works for seasonal businesses.

Keep an eye out for fees and charges

With so many options on the market, it can get confusing to know which one will be the right one in the long run. However, comparing the comparison rate of your finance options can help you know the true cost of a loan since this includes the fees and charges that come with it. Always keep in mind to check for fees such as establishment fees, early repayment fees, and other charges that can affect your loan.

Potential taxation benefits

Don’t let your business miss out on potential tax benefits that can be beneficial in the long run. There are equipment finance options that come with tax benefits, but these are assessed differently. To know which options will be more suitable for your business you can speak to your account or find out more information from the Australian Taxation Office (ATO) to see which will be applicable to your business

Will you be able to afford your loan?

Always check if you are able to afford before signing the dotted line to an agreement. This can prevent you from falling into a debt spiral or defaulting on your loan. Having a budget in place and assessing whether the equipment you would like to purchase will add to your business is essential.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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