Equipment Finance Perth

Compare comprehensive equipment finance solutions in Perth and other areas in Western Australia with Savvy.

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Western Australia is home to some of Australia’s best retail shopping, fine dining, and experiences, but also to many of our mines, manufacturing, and industrial plants. Savvy understands the needs of Western Australians and business in Perth, offering flexible and competitive equipment finance options. Whether you’re starting out or looking to expand, Savvy has the tools and resources to secure your business future with the equipment it needs to succeed. 

Businesses are different and their equipment needs are just as unique – so you can buy or lease your equipment and do it your way. Whether you want to purchase your equipment outright, lease it for a short-term or have the option to buy at the end of a lease, Savvy has a solution for your business. Choose from chattel mortgages, hire purchases, equipment leases, operating leases, finance leases, and more. Get competitive rates from our vast panel of commercial lenders and start moving today. 

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More on how to get approved for equipment finance in Perth

What type of tax incentives can I get on equipment loans?

There are many tax incentives when buying equipment and financing it with a loan. Your business can claim the GST back on the purchase price on the next activity statement. In a chattel mortgage, you can claim the interest paid and the depreciation on the asset. In a hire purchase, these may be deducted by your lender and passed on as savings. Buying certain assets may be eligible for the instant asset write-off scheme, which allows eligible businesses to write off those with a value of less than $20,000 (as of August 2023). 

Operating leases – what are they used for?

Operating leases are used for businesses that want to conserve their working capital or cash for other opportunities or to keep it as a resource. Operating leases give a business the flexibility to use equipment for a set period and hand it back when it’s no longer required, or needs to be upgraded, such as in IT applications for example. Operating leases are also classified as a business expense which is also a significant tax advantage. Operating leases can also be tailored to your cash flow, if it is seasonal. In most cases, you will not have to pay for regular maintenance; though you may have to keep the equipment in good condition for the lease term. 

Buying equipment at the end of a lease

Certain leases give you the choice to buy your equipment outright if you find the equipment is integral to business operations. This type of lease is known as a finance lease. Like any lease, you take possession of equipment for a set period and make monthly (or regular) repayments over the term of the lease. At the end of the lease, you are given the option to buy the equipment. This takes the form of a residual value payment. This is amount that the equipment is worth at the end of the lease. If you lease $50,000 of equipment and pay $30,000 over the loan period, you can buy the equipment for $20,000. You can also hand the equipment back or start a new lease with new equipment. 

Should I buy used equipment?

In most cases, a business should buy new or close to new equipment as possible. This is due to newer equipment having higher residual value, or conversely, low depreciation. A bank or lender will have a difficult time justifying a loan for a low-value piece of equipment, especially if it is used as collateral (or the ‘chattel’ portion of a chattel mortgage). This is due to higher risk associated with older equipment, as it may break down, wear out, and be less reliable. It is also more difficult to insure older equipment due to these factors. That being said there are some higher value pieces of machinery that stay useful for many years. At savvy we have financing options for older pieces of equipment that still hold their value and use in the market even if they might be 10, 20 years old.    

Your common questions on equipment finance in Perth

What is a chattel mortgage? How is it different to a hire purchase?

A chattel mortgage is a business finance option that allows a registered business to purchase equipment and take ownership right away. A chattel mortgage is a type of secured loan with many tax advantages. Businesses can claim GST, interest, and depreciation on their activity statements. A business can borrow more than the value of the equipment to make it a cash-flow neutral solution. A hire purchase is effectively the same, except the bank or lender retains ownership “on the books”.  

Is there a way to lease my equipment and buy it at the end?

Yes – a finance lease gives your business the option to buy the equipment at the end of a lease instead of handing it back. You will have to pay out the residual value to gain ownership and responsibility for upkeep and other associated costs. 

What type of equipment does Savvy finance?

All types of equipment you need to run a modern, thriving business. Agricultural equipment, gym equipment, retail fit-outs, IT infrastructure, transport vehicles, mine spec equipment, industrial machines, racking for warehouses – just to name a few. 

I run an agribusiness and need seasonal repayments. Is this an option?

Yes, we can tailor a solution for seasonal repayments according to your cash flow projections. 

Can I get unsecured equipment finance?

Our panel of lenders do offer unsecured business finance for select applicants, subject to credit checks and other fulfillment of eligibility criteria. 

I am a tradie starting their own business and need equipment. Can I get a loan or lease?

Yes – we can find lenders willing to loan to new businesses such as trades for competitive rates. This may be subject to your experience, business plan, and cashflow projections 

Can I apply for rent to own?

Yes, we have some rent to own options available. Talk to a loan consultant to find out more. 

Do you finance used equipment?

Yes – in some circumstances. This depends on the condition of the equipment and the type of equipment you wish to finance. 

How long can I lease equipment for?

Operating lease terms usually run between one and five years. This can vary depending on your circumstances and needs. 

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