Drones or unmanned aerial vehicles (UAV) are becoming essential equipment across many industry sectors. Extensively used for several decades in defence applications, developments in technology and affordability have brought these versatile vehicles into the general commercial sector and are being increasingly adopted for general business operations. Providing an eye in the sky for a wide range of applications.
In agriculture, drones can be equipped to carry out spraying operations and to monitor crops and livestock. Coverage of live events especially sporting events has been revolutionised with drone camera equipment, both fixed and unfixed.
Enterprising businesses are using drones to making deliveries of much-needed medical supplies and much-wanted coffee in difficult to access and remote areas or simply to save delivery times. Drones are widely used for surveillance work of power and other utilities infrastructure and cabling; in professional photography especially for real estate; for monitoring a range of conditions in many terrains; for data and information gathering; for geo-mapping by engineering firms; and for surveying dangerous to access areas for general monitoring, mining and for search and rescue operations.
While the smaller drones will be below the minimum loan amount for most Jade lenders, the larger, professional level drones and their associated equipment would meet our lender requirements and be eligible for finance under our Equipment Finance category.
Drones can increase efficiency, expand operations and work into otherwise inaccessible areas, improve service offerings and increase safety and may be an investment you are considering. If so, we provide information on purchasing with drone and technology financing.
Types of Finance Available
For the purchase of drones used primarily for business purposes, subject to meeting our lender requirements, Jade offers our comprehensive range of loan types.
Loans for drones include:-
These types of finance facilities vary in regard to the way they treat GST, when and how an income tax deduction benefit is realised, entry as an asset or liability in a company’s balance sheet, suitability to either the cash or accruals method of accounting, the interest rate and some other aspects.
The interest rate varies due to differences in how each loan type is structured. To see the interest rates we are currently achieving on equipment finance, please refer to our Loan Interest Rate Comparison chart.
Deciding which is the most appropriate finance for your specific drone purchase and which is most suited for you individual business set-up, a range of factors need to be considered. To assist you with this decision-making process, we recommend that our customers refer to their accountant or their financial advisor. While our Jade consultants are experts in sourcing and structuring finance, it is not our role as your lender to provide advice on issues pertaining to financial objectives of individual businesses. Simply have the conversation with your accountant then brief your Jade consultant as to which loan type you would like us to source for you.
Lender Options
While drone technology has apparently been around for over two decades, it has primarily been used in military and defence applications. The availability of professional and commercial grade drone equipment is relatively new for the business community. As such, not all lenders might embrace and understand your uptake of drone technology and may be reticent to provide you with the appropriate finance.
Fortunately Jade Equipment Finance is not limited to just one or only a few lender options. We are accredited with multiple banks and non-bank lenders. So we have plenty of choices to source the lender that will offer you the cheapest and most cost-effective finance quote for your drone purchase.
If you’ve never worked with a lender like Jade before, the process is simple and straightforward. Our services are available to all types of businesses – SMEs, sole traders, owner operators, family entities, partnerships and large corporate organisations.
You just brief us on details of the drone equipment you are considering buying, provide details around your business financial situation and what loan type you are seeking and we do all the work from there. We source you a quote from across our lender panel, negotiating on interest rates and loan conditions to secure the cheapest and most suitable offer. On your acceptance of that offer, we’ll handle the paperwork to save you time and hassle.
Planning Your Finance
If you’re considering a range of different drone makes and models, you are welcome to use our equipment loan calculators to get rough repayment estimates to assist with your planning. We provide two calculators which can be used together or separately. The interest rate calculator shows the rates we are offering on different types of loans. You enter your loan amount, which can be 100% of the purchase price, and the loan term you want, to calculate repayment estimates for different loan types.
The equipment loan calculator adds another dimension with the inclusion of the balloon/residual. This is part of the loan which is set aside for payment at the end of the loan term. Enter the data around your loan, including the interest rate for the loan type you have selected plus any balloon you may choose and the repayment estimate will be calculated.
Alternatively, just get started with your loan application by applying online or giving us a call.
Contact Jade Equipment Finance on 1300 000 003 to discuss your drone equipment finance requirements.
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.
