Financing Equipment: A Smart Move for Growing Businesses
Whether you're replacing aging machinery, upgrading to the latest technology, or expanding your operations, Equipment Finance remains one of the most strategic ways for established businesses to invest in growth, without tying up valuable working capital.
Even if your business is well-established and profitable, using external finance for equipment purchases can offer a range of benefits, from tax advantages to improved cash flow management.
Here's what you should consider before financing your next piece of equipment.
Why use Equipment Finance instead of paying upfront?
Even with capital on hand, financing equipment can make better business sense, here's why:
Preserve Cash Flow
Keep your working capital available for operational needs, payroll, or unexpected expenses
Stay up-to-date
Upgrade or replace outdated assets without large upfront costs
Tax Benefits
Depending on the structure, repayments and depreciation may be tax-deductible
Flexibility
Choose finance terms that align with your seasonal cash flow or project cycles
Boost Purchasing Power
Afford better quality or higher capacity equipment that supports long-term productivity
What are the Equipment Finance options?
For established businesses, there are several tried and tested options:
Chattel Mortgage
You own the asset from the outset. Ideal if you're registered for GST, as you can typically claim the GST upfront
Finance Lease
The lender owns the equipment; you lease it over a term and may have the option to purchase at the end
Operating Lease
Suited for short-term equipment use or assets that are regularly upgraded, with no ownership obligations
Each structure has it's pros and cons depending on your tax position, asset life and cash flow needs.
What lenders look for in established businesses
Established businesses tend to have more finance options available (and potentially better rates), especially if you:
- Have strong consistent cash flow
- Maintain clean credit history
- Can provide up-to-date financials (e.g. tax returns, profit and loss)
- Have a stable trading history
- Backed by real estate (not used as security)
Even so, working with a Finance Broker can help ensure your application is positioned to get the most competitive terms available.
Why work with a Finance Broker (even if you're an experienced business owner)?
It might be tempting to go directly to your bank, but an independent Finance Broker can give your business an edge:
- Access to multiple lenders, not just one product or interest rate
- Tailored structuring based on your balance sheet, cash flow, and tax strategy
- Faster turnaround on approvals and settlements
- Expert negotiation to secure better rates or flexible terms
- Support with upgrades, early payouts and refinancing down the line
Think of a broker as your long-term finance partner, someone who understands your goals and works with you across multiple transactions as your business evolves.
Final Thoughts
If your business is growing, the right equipment can help take it to the next level, but how you finance that equipment can make just as much of an impact as the asset itself.
Equipment Finance gives established businesses the flexibility to invest without compromise, improve cash flow and stay competitive in today's fast-moving market.
Looking to Finance your next Equipment purchase?
At RLA Finance,
- We work for you: Comparing lenders, doing the legwork, and meeting when it suits you to help you find the right loan with more options.
- We do the hard work: Comparing a range of loans using our market knowledge to find options that suit you, then we decide together.
- We support you through the whole process: From finding the right finance to handling paperwork, managing the application and following it through to approval.
Operating for 30+ years, with dedicated experience in Equipment Finance brokering, no matter your personal or business goals, we have got you covered and are committed to you for the long haul!