Equipment Finance Sydney
Find out more about equipment finance options available in Sydney with Savvy.
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Sydney equipment finance solutions for busy business leaders
Equipment finance is the lifeblood of basically every commercial and industrial sector in Australia, and vehicles and machines of all shapes and sizes are what makes the economy tick. When your business needs to upgrade, replace, or purchase new or used equipment, you need finance solutions you can trust and the ability to put funding in place without delays. Whether you need business finance for a coffee machine, a lease for manufacturing equipment, or a secured loan to buy a truck – you came to precisely the right place.
Find fast, cost-effective options for equipment finance in Sydney
Finding the best equipment finance solution for your needs has got a lot to do with choice, convenience, and speed. Here at Savvy, our expert commercial finance brokers canvas dozens of specialist equipment finance lenders and offer a diverse range of products, so there’ll always be a solution that fits your aims and budget. We take the hassle and time out of sourcing commercial finance because we do the legwork for you, presenting relevant, cost-effective options swiftly so you can spend your valuable time running your operation.
How does equipment finance in Sydney work?
One of the most popular equipment finance solutions for many years has been the chattel mortgage. Chattel mortgages offer a range of tax advantages for business, and they’re a very effective way to purchase machines, vehicles, and tools. Just like with a personal car loan, Sydney businesses own equipment from day one, so they can claim depreciation as well as interest on repayments.
| Amount | Interest | Term | Monthly | Total cost | Total interest |
|---|---|---|---|---|---|
|
$80,000* |
5% |
4 Years |
1,389.64** |
$90,702.72 |
$10,702.72 |
|
*Business claims $7,272 on next Business Activity Statement |
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|
**Tax-deductible element per payment is approximately $178.38 |
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Customers who utilise chattel mortgage finance benefit from claiming back 100% of the purchase price GST the next time they file a BAS. Terms run up to seven years, with the option to refinance residuals. You can use a deposit or opt for 100% equipment finance.
Equipment leases come in two primary forms. Operating leases are the method of choice for businesses that want to outsource fleet management, maintenance, or both. Terms run between one and five years, and entire repayments are tax-deductible.
Finance leases offer end-of-term ownership via an ATO-set residual value based on the length of your lease. That means Sydney organisations only pay down depreciation during the term and have the option to refinance once that ends. Payments are 100% tax-deductible.
| ATO Lease Residual Values (Applicable at the end of each year) | |
|---|---|
|
Year One |
65.63% |
|
Year Two |
56.25% |
|
Year Three |
46.88% |
|
Year Four |
37.50% |
|
Year Five |
28.13% |
Correct as of August 2023.
What are my options for finding equipment finance providers in Sydney?
Savvy operates nationally, but we have long-standing relationships with some of Sydney’s top equipment finance providers. We’re in the business of leveraging that to help your company find more cost-effective finance solutions. To get the process started, all you need to do is give us a quick call. We’ll assign you an expert commercial finance consultant; they’ll get some brief background on your business and ask about the equipment you need.
Next, Savvy will go to work sourcing the most suitable, cost-effective equipment finance options for your specific needs. Once we’ve identified the optimal solution, we’ll liaise with the lender to make sure your application gets completed quickly. Savvy consultants stay the distance, so you’ll have all the help you need until your equipment gets safely delivered.
One of the primary advantages of using an equipment finance broker like Savvy is that Sydney businesses get to compare dozens of industry and sector-specific lenders who offer a range of products designed for commercial users. If you rely on a single lender, you’ll limit your options to one or a few solutions, but Savvy can access enough products to tailor a solution to the needs and circumstances of your individual organisation – whether you run a huge fleet of vehicles out of Parramatta or need to buy a coffee machine for your café in Circular Quay.
Explained: What you’ll need to apply for equipment finance
Identification documents
Most lenders need at least one form of photo ID like a driving licence or passport.
An active ABN
Lenders place various limits on this, but most will insist on your ABN having been active for a year or six months.
Equipment details
If you’re using a chattel mortgage, you’ll need to supply details like serial or VIN numbers, registration information for vehicles, plus a description of the equipment, including manufacturer details and model specifics.
List of your assets and liabilities
Depending on the loan amount and the lender, you may get asked to detail any other assets your business owns. You can also detail cash assets. You’ll sometimes also need to provide a list of existing finance commitments and like credit cards property loans.
A current profit & loss statement
Again, depending on the lender and loan size, you may be required to provide profit and loss information so the financier can assess the ongoing health of your business.
