Construction equipment finance at competitive rates may enable operators to upgrade machines to take advantage of a boost in work with new housing targets. In efforts to meet the Federal Government’s new housing targets, many state governments and local councils are rezoning areas for residential and identifying key sites for new housing developments. To meet the authorities’ targets and timeframes, the building industry will need to be ready to start work when plans are approved. To ensure you’re ready to take advantage of potential increases in work on offer in your area, consider upgrading your equipment.
New machinery can provide significant benefits in greater efficiency, lower fuel costs, improved reliability, less downtime, lower maintenance costs and the potential to achieve increased productivity. Allowing more work to be completed in less time and deliver a better return to the business.
In addition to the prospect of lucrative work contracts, operators may be incentivised to upgrade their machinery by the recent cuts to interest rates. The Reserve Bank (RBA) cut the cash rate at their July meeting and another cut is anticipated at the Board’s 30 September meeting.
Consider your options, use our Calculator to work up loan estimates for budgeting and to help decide if upgrading is the right move for your business.
Construction Equipment Finance Facilities
Business assets used in the building and construction sector can be financed with Lease, Rent-to-Own, Chattel Mortgage or Rent-to-Own loans. All offer tax deductions, fixed interest rates, fixed terms up to 7 years, and end of term lump sum payments.
The decision as to which is the most suitable option involves considering the accounting method used by the business, the preferences with asset ownership and approach to tax deductions.
Upgrades to Existing Machines
Where an upgrade involves reconditioning existing units or purchasing additional attachments, financing may be provided with secured or unsecured credit. Where the item is considered suitable collateral by the lender, asset acquisition credit facilities may be used to finance the purchase.
Where an upgrade involves a new tech system or parts, an Unsecured Business Loan may be suitable to fund the work.
Interest Rates on Construction Equipment Finance
Interest rates on business asset loans vary with credit facilities, lenders, with new and used assets, and with individual businesses. With the recent RBA rate cut decisions, asset finance rates across the market have been changing. But differences can still be found with different lenders.
We assist operators to ensure they have secured their best possible rates by sourcing loans from our vast market coverage. Our lenders include specialists in lending to the building industry and financing heavy equipment. Ensuring more competitive rates are obtained compared to some banks and finance companies.
Small & New Operator Construction Equipment Finance
The work prospects presented in the building sector in coming years by the Government housing targets, may be the motivation some individuals require to finally make their move and set-up business on their own.
This may be as a sole trader, owner-operator as an incorporated entity, or in partnership with others. Affordable loans for new businesses can be more difficult to secure than finance for a long-established operation. Difficult, but not unattainable.
Our accreditation with specialist non-bank lenders allows us to provide machinery loan opportunities for new operators on a Low Docs and No Docs approval basis. Operators apply without all the usual financial documentation such as annual accounts, several years of tax returns, minimum levels of turnover, BAS returns and bank statements.
With little or no business financial details available, applicants will be required to provide their personal financial information and documents. The individual’s personal credit score will be reviewed. If planning finance for future purchases, new operators may take the chance to improve their financials by reducing current debts and loans.
Construction Equipment Finance – Machine Types
When planning machinery upgrades, be assured that all types of machines used in the building and construction sector can be financed with the same credit facilities. This includes yellow goods, wheeled goods, excavators, loaders, dozers, graders, cranes, lifting equipment and other units. All brands can be financed including CASE, Kubota, Caterpillar, Bobcat, and others.
Where extra accessories such as various buckets and attachments are required, they may be included in the same loan as the machine when purchased together. Where purchased separately, attachments may be financed with Unsecured Loans where not accepted as suitable loan collateral.
Differences with rates and loan terms are found with finance on new and used models. To decide if a new or used purchase is your most workable option, request quotes on both for comparison purposes.
If intending to buy used at auction, operators may benefit from applying for a pre-approved loan. This allows operators to know they are approved for finance and have a borrowing limit set for bidding.
Be prepared to take advantage of new work opportunities by upgrading with our affordable rates on construction equipment finance - contact Jade Equipment Finance on 1300 000 003 for a quote.
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.
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