How To Use Equipment Finance To Grow Your Business

Nathalie jones valiant finance

Nathalie Jones

Monday, 12 December 2016

Getting equipment finance is one of the simplest and quickest ways to grow your business. The best part? The equipment that you purchase becomes the security for the loan. Let’s explore how it works.

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.

Related Posts

How To Get Your Business Set-up on Social Media

Want to reach your customers online? Are you ready to digitise your small business? First up: get smart about social.

How To Find The Right Loan For Your Small Business

Every business is unique. Every business loan is different. What features are most important to you? Consider these 4 things before applying for finance.

How To Use Equipment Finance To Grow Your Business

Getting equipment finance is one of the simplest and quickest ways to grow your business – and the equipment becomes the security!

5 Hidden Business Loan Fees To Watch Out For

Don't get caught out. Here are 5 hidden fees and charges that could apply to your small business loan.

How To Compare Business Loans Across The Market

You've explored your business finance options. What do you do next? How can you be sure you're comparing loans effectively and getting the best deal?

What Accountants Need To Know About The Online SME Lending Market

The SME lending landscape is fractured and tricky to understand. If you're an accountant working in the industry, keep these things in mind.

How To Unlock The Cash In Your Unpaid Invoices

Are unpaid invoices causing cashflow problems for your small business? Invoice financing may be the answer.

What is a director’s guarantee and why is everyone asking me for one?

You're applying for loans, you start getting positive responses, and suddenly you're asked for a guarantee. Don't sign until you read this!

Here's What Working Capital Can Do For Your Business

With so many business finance options to choose from, how do you know whether working capital is right for your business? Start by reading this.

Time To Refinance? Here's What You Need To Know

Are you ready to refinance? Reviewing your business loan every 2 - 3 years can save your SME a lot of money. Here's what you need to know.

7 Tips For Managing Business Debt

2018 is your year. Here are 7 quick tips and tricks to get back in the driver's seat when it comes to battling business debt.

19 Business Funding Mistakes To Avoid

Improve your chances of locking down the perfect business loan. Here are 19 business funding mistakes to avoid when you're applying for commercial finance.

5 Must-Ask Questions When Applying For A Small Business Loan

Getting the best rate is all about asking the right questions. Have you done your research? Here's where to start and why.

Debt or Equity: What's best for your business?

Need to raise cash for your business? We explore the use of debt versus equity, and how to decide which one is best for your business.