Whether you’re from Mt. Isa or Ipswich, if you run a bar in Bundaberg or a gym in Gympie, getting the right equipment finance is vital to growing your business. If you’re in the start-up phase or are well-established and looking to grow, Savvy offers a range of flexible and competitive equipment finance options from chattel mortgages, hire purchases, operating leases, finance leases, and more. We tailor a solution that maximises your cash flow and accounting methods. Whether you’re looking to buy, lease, or want the best of both worlds, our consultants can help.
All equipment finance, whether you’re buying or leasing, comes with a range of tax incentives. With most finance options, you can claim the interest paid on your lease or purchase on your activity statement. If you opt for a chattel mortgage, you will get the GST paid and depreciation back on tax. You can also apply for the instant asset tax write-off, valued at up to $150,000 until the end of December 2020. (Reverts to $30,000 thereafter.)
One of the biggest industries in Queensland is agriculture and farming. Sometimes bumper crops come up and you need specialised or more equipment. But is it better to buy or lease? If you are having a one-off big harvest, an operating lease may be the best option, as you can lease short-term and hand the equipment back after the season is over. If you are expanding your acreage, buying may be a long-term growth solution.
Some businesses have bumper harvests and peak tourist seasons where they make the bulk of their revenue. The rest of the year might be lean and they go into “hibernation mode.” With all types of equipment finance, a facility can be set up where your repayments are ramped up when you have high cashflow and pared back when you experience this low period. This is to ensure your business can retain the equipment for the full loan term. If you only need equipment to bolster your operations during a peak time, you may be able to take out a short-term operating lease. Ask your loan consultant for more information.
Comparison rates are your best gauge to determine how much a loan will cost in total, instead of just looking at the interest rate alone. A comparison rate shows you the interest rate as well as most fees associated with the loan expressed as one number per annum (per year.) This way you can compare one loan against another and weight it up in an equal way. A loan with just the interest rate may be more expensive than an “higher” comparison rate when the fees and charges are factored in.
The conventional wisdom with any sort of major asset purchase is that you will need a deposit – consumers need one when they buy a house or a car in most cases – and equipment can be as costly as one or both – even more! However, with chattel mortgages, because they are non-consumer loans, do not have as many checks and balances on them. In short, your business can get a loan for 100% of your equipment’s value or even more than the value. This helps you pay for insurance, registration, installation, software, etc. over time, instead of tying up asset capital into operating liabilities.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
