Are you a tradie looking to purchase a piece of used equipment that’s over 15 years old? The best rates and terms on used equipment loans at your fingertips.
When it comes to equipment loans, many people are under the impression that it will cost them more to finance an older equipment compared to the cost of financing new. We do not discriminate against older assets. We understand that commercial equipment, like trucks, trailers and excavators are a crucial part of a tradies business operations. Also, most new business owners are not able to purchase an expensive new trucks and equipment.
Getting finance can be a stressful experience, but it doesn’t have to be that way. The goal of this blog post is to give you the knowledge necessary to make an informed decision about your equipment financing needs.
What loan amounts are available?
The minimum equipment loan amount that you can apply for is $15,000. If you are looking to buy a new or lease equipment, then there is no limit on how much money you can borrow from an approved lender.
Do I need a deposit?
If you own property, and are considered as asset-backed, you have a good chance of getting approved for a truck finance without having to put any money down. This is obviously subject to the lender’s approval. If, however you are a renter or have an adverse credit history recorded on your credit report, you may be required to provide a deposit of between 10% to 20%.
Equipment loan interest rates
Equipment loan interest rates are set by the lender, and it determines how much you will pay for your loan over a certain period. Interest rates fluctuate constantly. They are also dependent on your personal situation, e.g., Experience in the industry, work contract letter confirming pay, property owner or renter, Deposit power and an acceptable credit file from a Credit reporting bureau. We offer a range of rates to suit your needs. Truck loans are available at competitive variable interest rates, as well as fixed-interest and even deferred payments for primary producers.
Major lenders
Typically, a bank won’t finance any equipment older than 8 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a small new car.
But banks are far from the last option when it comes to lending. Most banks look at equipment older than 10 plus years old, as high-risk assets. For instance, if an excavator that was 10 plus years old, had to be repossessed and sent to auction, the number of buyers looking for older equipment would be reduced. Therefore, the ability to reach a sale price required to payout the loan would be at risk. Also, the likelihood of an older equipment incurring major mechanical failures and rebuilds is also increased. So, the banks tend to shy away from these assets.
Diverse funding solutions
We provide our business clients with a range of personalised, fast and flexible finance options and private business loans. We specialise in a variety of finance solutions Australia wide utilising non-bank lenders. Should you be having problems getting a loan from the bank? Out of time and out of options? We can help.
At Berra Finance we can customise a private loan solution. Because we have private funds available for truck loans, we can have your financing approved fast.
Is it hard to get equipment finance or equipment loans as a tradie?
No. Tradies can apply for a low-doc loan to purchase or lease equipment, with the same ease as major companies. With no documentation on income required, it is easy to get finance approved because all that matters is your ability to repay the debt.
Do you help self-employed with equipment loans?
Yes. We have a range of different types of financing that are available, such as low doc loans and fully verified options for self-employed people.
The process for getting equipment finance is relatively easy. The first step to applying for a loan or financing is to complete an Asset Finance Enquiry where you will fill out some basic information about yourself such as your contact details, employment status, equipment details etc. This should take around 5 minutes at most.
Should I buy new equipment or used equipment?
Some people prefer to buy new equipment because the resale value is higher and there are less chances of mechanical faults. Others may choose used equipment over a new, as it will be cheaper but more likely to have some issues with reliability or wear-and-tear. It’s important that you know what equipment suits your needs before you start looking at equipment. Having said that, most of our customers are small business owners who prefer to finance older assets.
Can I buy used equipment?
Yes, you can. Just because the equipment is old does not mean that it cannot be financed. In fact, the equipment finance market is not just for new. If you are looking to purchase older which still has good resale value and low hours, financing could be perfect for your needs. The lenders tend to do a desktop valuation on the PC on for sale sites. If the asset being financed is within the pricing guidance of equivalent equipment you should not have an issue.
How Long Is the equipment loan term?
The maximum loan payback period is five years if the equipment is older than 10 years. Some lenders will even allow you to include a balloon/ residual payment at the end of the contract. But this tends to be at the lender’s discretion, depending on the client’s personal circumstances.
Equipment loan eligibility criteria
This will determine whether you are eligible for a loan and the amount. You’ll need to provide us with information about your business or employment history, as well as details of your assets and liabilities. At a minimum you should have the following:
- 6 Month ABN Registration
- Work source letter
- Business bank statements (6 months)
- No unpaid defaults on credit file
- Industry experience
Fast Approvals
Good deals won’t wait around for slow-moving banks and lenders to organise and approve your finance. Sellers want to sell quickly and usually have plenty of buyers making offers. The used vehicle market is highly competitive so once you’ve found a good quality, well-priced used heavy vehicle you need to move quickly or risk losing the deal.
Can you help me with business finance or working capital too?
Yes. We also offer a range of business finance and working capital solutions to help you with your financing needs, including overdrafts, term loans and more.
The benefits include:
- Fast approvals without having to provide documentation on income or assets
- Competitive interest rates that are tailored for everyone’s requirements
- Flexible term lengths to suit your needs
- Range of different types for business finance available
Can I apply online? Yes! We have a range of loan products that are approved in minutes over the phone or online.
Expert finance consultants
As Asset finance specialists, we understand the variety of challenges that businesses face when operating in the construction industry. We take the time to understand your individual business’s needs and pick the best finance solution for you from the wide variety of options available. Whether you are a contractor or running an entire operation, we can get you in the driver’s seat in no time.
DISCLAIMER: The information contained in this document is general in nature and should not be relied upon as legal advice. Berra finance does not warrant the accuracy or completeness of any representations made in the document or that the material is suitable for any purpose. You are responsible for assessing the material and seeking your own legal or financial advice. To the fullest extent permitted by law, Berra finance excludes all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in connection with your use of or reliance on the material contained in this document. This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Berra Finance as at the date of publication and may later change without notice.
