What is equipment finance?
As the name suggests, equipment finance is used to purchase equipment for your business. The lender will give you the cash to purchase the equipment, which then becomes the security for the money you are borrowing from them. Traditionally, the business owner would’ve had to take out an unsecured loan (at a higher interest rate) or use their personal property as security.
What’s the major drawcard?
New equipment can unlock an array of opportunities for your business, by allowing you to serve more customers, offer new services and improve efficiency. By servicing more customers - or serving your existing ones faster - you can increase your revenue and take advantage of growth opportunities that come your way.
Give me the details.
To give you an idea of how equipment finance works, let’s look at Sam’s business.
Sam owns a construction company and has worked in the industry for over 15 years. He needed some extra equipment so that he could keep up with all of the work he was getting. Instead of freeing up cash from other areas of his business or using his personal assets as security, Sam was able to use equipment finance. The new equipment he was able to purchase meant that he could serve all of his customers and continue to grow.
Think about your business: could you benefit from adding another vehicle to your fleet? Or maybe you need a specialised heavy vehicle like a bulldozer? How about updating your old gear with something that is bigger, better or faster? Equipment finance is applicable for a variety of items and is available with interest rates as low as 5% per annum.
Nat is the Communications Manager at Valiant Finance. She has a double degree in Journalism and Law, and a background in the fintech space, hailing from Asia's largest fintech hub, Stone & Chalk.