Equipment Unserviceable and Out of Action? Cash Flow Insufficient to Cover the Repairs? Explore Machinery Repair Loan Options

A machinery repair loan is typically provided with an unsecured commercial credit facility through Jade Equipment Finance to cover services, parts and labour. When equipment is unserviceable and not working for your business, it can potentially place the entire operation in a precarious position.

Where the machine is critical to the operation, it may mean reduced income and reduced funds to cover operating expenses. The priority must be to get that machinery working again and quickly. But when repairs are major and the cost is significant, that may not always be a simple process.

We understand the pressures facing many operators, especially in the current economic climate. Where cash flow is already under pressure, we may have a solution with a machinery repair loan. Solutions are individually sourced by our expert brokers to suit the specific needs of the operation. Consider the options and discuss your specific situation with us.

What is a Machinery Repair Loan?

A machinery repair loan is financing to cover the costs of repairs, maintenance and servicing of equipment used in a business operation. The equipment may be used in any industry sector – agriculture, construction, medical, civil works, transport and production and processing.

As the cost of repairs is essentially a service, this type of expense is not suited to secured commercial credit facilities. That is, the purpose of the loan cannot be offered as collateral for the finance. With no collateral available, we offer operators a choice of unsecured commercial credit facilities to meet this type of expenditure. Unsecured Business Loans can be a workable loan solution for repair work. Rates may be fixed or variable and the interest and lender fees are usually tax-deductible. Workable fixed terms are negotiated by our brokers to best deliver a repayment schedule that meets cash flow and turnover.

An Overdraft is another option. Most businesses will already be familiar with and operate with a Bank Overdraft. This type of credit provides a flexible line of credit for businesses to use when required, with interest only charged on the funds utilised over the time utilised.

If you have an Overdraft but without sufficient credit to cover the current repair expenses, speak with us about the option we may source for you. Through our non-bank lenders especially we can source highly competitive rates.

Unsecured Business Loans typically have similar if not the same interest rate as Business Overdrafts. But Overdrafts may offer a more flexible option with operators provided with the opportunity to paydown the debt when funds allow, reducing the interest accrued.

A Business Loan will typically be arranged over a fixed term with fixed monthly payments and exit fees if the loan is finalised prior to the end of that term.

For a deeper discussion on which credit facility may work best for your current requirements, connect with a Jade broker.

What Can a Machinery Repair Loan Cover?

Unsecured commercial credit facilities have the versatility to cover a wide range of business expenses. To fix, service or maintain equipment, those expenses may include replacement parts; engine reconditioning; complete motor replacement; complete overhaul; major scheduled servicing; and general repairs.

Loans may cover labour, parts and materials and additional attachments or accessories to repurpose the machine for a different crop or project.

Compare Repair with Replacement Finance

Where repairs are extensive in scope and in cost, operators may like to consider the option of replacing rather than repairing the equipment. While the outlay will clearly be greater in total, the total replacement equipment finance package may present a more feasible option with the trade-in or resale of the current machine used as a down payment on a new unit.

Secured equipment finance to purchase new equipment offers lower rates than the unsecured credit products used to fund repair work. New assets may also present a less costly option in regard to maintenance over coming years, while the current machine may require further and ongoing work to remain operational. New equipment may also present an opportunity to realise other benefits with fuel efficiency and improved productivity.

Work up estimates on Lease, Chattel Mortgage, CHP and Rent-to-Own on new machinery prices and compare the overall package with the financing costs of repairing the machine with our Finance Calculator.

Get Equipment Back in Action ASAP – Fast Loan Service!

We know how important it is for operators to get their equipment operational when repairs are needed. We support businesses with prompt attention to enquiries and fast processing of applications to get quick answers. Many operators will receive their answer – approval or not, with offer, within 24 hours, enabling the okay to be given to the repairers and the work to commence.

For a machinery repair loan to get unserviceable units back to work, speak with Jade Equipment Finance 1300 000 003.

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.