As full service finance brokers, Jade Equipment Finance has the expertise to discuss no deposit equipment finance options with all types of businesses and for all types of equipment. Our consultants are licensed finance professionals, highly trained and skilled negotiators when it comes to bargaining great equipment finance deals with no deposit with lenders on behalf of our customers.
Subject to lender approval, we are ideally positioned to structure a no deposit equipment loan that suits your business set-up, your accounting methods, your balance sheet approach, your treatment of GST and tax and move you forward to achieving your business goals.
No Deposit: Explainer
It is important to differentiate no deposit finance from deposits requested from the seller.
When purchasing equipment you may be asked to pay a deposit to confirm the sale.
- If purchasing from a manufacturer or dealer, a deposit would usually be requested as their assurance that you are proceeding with the purchase while you arrange your finance. They will be confident to remove those goods from their inventory, prepare the goods for delivery to you and proceed to carry out any necessary customisation to suit your requirements.
- If purchasing equipment at an auction, you will most likely be required to pay a deposit on the fall of the hammer. Requirements will vary across auction houses so if you are intending to buy at an upcoming auction, review their terms and conditions beforehand so you are prepared.
- If purchasing equipment from a private seller or another business, they may request full payment to secure the sale or some form of interim deposit to allow you time to arrange your loan.
In these instances, it may be only a holding deposit, ie a credit card imprint, and will be returned to you when your Jade consultant arranges settlement with the lender.
No deposit finance refers to no deposit being required by the lender who is extending your equipment finance.
- 100% of the purchase price is included in the finance deal.
- Subject to individual lender criteria.
Your Jade consultant can negotiate these terms for you, where possible.
There can be significant benefits in no deposit financing. If purchasing high-priced goods, ie machinery equipment worth $100,000+ or even a motor vehicle around $20,000, even a 5-10% deposit payment can represent a significant cash outlay to some businesses.
- No deposit conserves cash reserves, supports cash flow.
- No deposit allows 100% of the purchase price to be treated as per your finance type in relation to GST and tax deductibility.
- The value of goods when the loan term expires should be considered. As good financial management practice, if paying no deposit, you need to be sure that the balloon, residual or buyback amount does not exceed the value of the goods at the end of the loan term.
- By paying a deposit, you reduce the overall amount of your loan. This may be beneficial in reducing the monthly repayments or the loan term, so you pay off the equipment earlier.
Our consultants are available to discuss your options for a no deposit machinery loan and ready to work with you to achieve your objectives.
To discuss finance options contact Jade Equipment Finance on 1300 000 003.