What is Equipment Finance?
The tools, equipment and machinery your business uses are some of its most important assets. This can be anything from a tradie’s tools, office computers, work vehicles and equipment, or even specialised machinery. A business’s operation and profitability can often depend pretty heavily on its equipment, so if the opportunity is there, purchasing new equipment can increase both efficiency and profitability.
Equipment finance (also known as asset finance) is when a business borrows money with the purpose of purchasing new or additional business equipment. Traditionally, there are a few kinds of equipment finance, including hire purchase, chattel mortgage, and lease and rental options. However, Moula’s business loans are different from those.
In commercial hire purchase and finance lease options, the lender owns the equipment you have purchased, while your business uses it. Then at the end of the term, ownership may be handed over to you or you will have the option of purchasing the equipment from the lender. In other types of equipment lending, the equipment itself will be used as security and have terms around its maintenance, insurance etc.
What Are the Benefits of
Unsecured Equipment Finance?
With Moula, getting an equipment loan is much more straightforward than traditional business finance options. Our loans can be used for any business purpose. Because they’re unsecured, you won’t have to put up the equipment you’re purchasing (or any other assets) as collateral to secure your loan. This gives you much more flexibility and control over how you purchase, maintain and insure your equipment.
Typical equipment finance solutions can be complex, with different terms around ownership of the asset, how it has to be insured and maintained, as well as specific terms of the loan. Moula’s loans are simple, straightforward, and transparent. Your loan doesn’t have to just cover the equipment itself, but also the costs associated with installation and implementation, giving you more flexibility when purchasing new equipment.
With new equipment usually comes increased business productivity and profits. Moula’s loan terms range from 6 to 24 months, and our loans are flexible. So if you’re starting to reap the rewards of your new equipment earlier than expected, you can repay your loan early as well, with no early repayment fees or charges. Plus our fixed interest rates are totally transparent and our lending criteria doesn’t include collateral for the loan.