Machining Equipment Finance Options

One of the key priorities areas that the Prime Minister, Scott Morrison has flagged for economic recovery is manufacturing. A priority being to achieve sovereign capability across a number of specific sectors. While a significant amount of funding is on the table for companies to participate in the initiative, at Jade Equipment Finance we see opportunities for businesses at various stages in the supply chain. Specifically for engineering and machining workshops.

For businesses to make the necessary pivots and other moves to manufacturing to meet the objectives as set by the Government, it is highly likely that new equipment and machinery will be required. While some of these machines will be acquired as complete units, in many cases, workshops may be called upon to create the necessary customised components and mechanisms to adapt existing equipment for new lines of production.

Workshops may be seeking to invest in their own machining equipment in order to meet demand. Jade Equipment Finance can assist by working with your business to source cost-effective and workable finance options for the acquisition of new machining equipment.

Types of Machinery Financed

We source finance solutions for a wide range of machining equipment across multiple industry sectors. The type of machinery includes, but may not be limited to:-

  • Lathes including metal lathe machines
  • Boring bills
  • Milling machines
  • Plasma cutters
  • Presses
  • Grinding machines
  • Drilling machines
  • Power saws of all sizes and applications
  • Machines with multi-tasking capabilities
  • Welding equipment across a range of applications
  • CNC machines
  • Inspection and testing equipment

Both new and used equipment can be financed, subject to individual lender guidelines. Guidelines may apply to minimum and maximum loan amounts and conditions in relation to the age and working life of second hand equipment.

Eligible Businesses

Jade Equipment Finance works with customers in many locations across Australia and we’re well aware that engineering, metal-working and general machining workshops exist in many business structures. We provide finance options for the full range of business types and company structures: sole traders, small businesses, partnerships, SMEs, family businesses and large corporate concerns.

As your finance lender, our services are designed to source you cheap finance and in doing so, ease the time pressures usually associated when business operators seek to arrange their own finance. We save you the time that you don’t really have in the first place!

Your Jade consultant can become an essential component in your business planning team, providing access to exclusive industry-only lenders and expertise in structuring your finance deals. We’re accredited with multiple banks and lenders to provide you with greater scope in sourcing finance that genuinely meets your objectives.

Loan Types Available

Depending on your financial objectives and accounting issues, you can select from our full range of commercial finance facilities for equipment finance:-

These finance products offers its own individual features in regard to the treatment of GST, tax deduction benefits, balance sheet entry and suitability to either the cash or accruals method of business accounting. Due to interplay between finance type and business accounting, it is best to refer to your accountant for advice on choosing which will deliver the best outcome for your business.

Special Finance Considerations

For operators who are just starting up a new business, possibly branching out on your own, choosing to work as a sole trader and for other reasons, sourcing finance through the traditional banking sector can pose a challenge. Not all will meet the strict guidelines and have all the documentation required by the banks.

For businesses that do not meet those guidelines, Jade Equipment Finance does offer low docs and no docs equipment finance. This specialised type of finance is for businesses that do not have all the complete financial accounts required by some lenders.

Being offered a no docs or low docs loan is subject to individual lenders, but Jade does have accreditation with non-bank lenders that have proven on many occasions to be more flexible in granting cost-effective no docs finance deals.

In order to be eligible for this type of finance you will need a minimum of a current ABN and proof of identity and preferably be registered for GST and the ability to provide at least basic details of business income/expenditure.

This type of loan does attract a higher interest rate but your Jade consultant will be working towards achieving the cheapest rate equipment loan and a workable solution for your business.

Capitalising on Government Initiatives

As part of the COVID-19 stimulus efforts, the Federal government has introduced a raft of measures which can potentially deliver an enhanced tax benefit for businesses in regard to investment in assets such as machining equipment. These include the Instant Asset Write-Off and temporary full expensing. These do have timeframes and eligibility criteria but should be noted as possibly significant in bringing forward your machining equipment purchases.

To discuss the options available to you in regard to machining equipment finance, contact Jade Equipment Finance on 1300 000 003

DISCLAIMER: THE INFORMATION, OPINIONS, DATA, POLICIES, PRODUCT SPECIFICATIONS AND OTHER CONTENT CONTAINED AND EXPRESSED IN THIS ARTICLE HAS BEEN OBTAINED THROUGH RECOGNISED REPUTABLE SOURCES, PRIMARILY IN THE PUBLIC DOMAIN. LIABILITY IS NOT ACCEPTED FOR ANY ERRORS OR MISINTERPRETATION OF SAID CONTENT. THIS CONTENT IS NOT INTENDED OR PROVIDED AS THE SOLE SOURCE OF INFORMATION OR AS SPECIFIC FINANCIAL ADVICE IN REGARD TO MAKING DECISIONS BY INDIVIDUALS OR BUSINESSES. THOSE THAT CONSIDER THAT THEY NEED PROFESSIONAL ADVICE SHOULD REFER TO A FINANCIAL ADVISOR.