Choosing the perfect earthmoving equipment finance can be very important for revealing the growth opportunities of your construction business. Financing helps you in acquiring essential equipment such as excavators, loaders and bulldozers without any substantial upfront investments. This helps in freeing some of the important working capital for other areas of your business like hiring skilled labour or taking on some of the big projects. Here is a comprehensive guide that allows you to explore several earthmoving equipment financing options that are available in Australia along with important considerations and the process of applications.

Advantages of earthmoving equipment finance

Earthmoving Equipment Finance provides you with various range of loan and leasing options specially designed for the requirements of the construction industry. By financing the equipment purchase you will get the following benefits:

Preservation of the working capital: Rather than depleting the cash reserves, financing permits you to spread the cost of the equipment over some defined period. This helps in freeing up some of the important working capital for other functional expenses like the materials and the payroll.

Unlocks novel opportunities: Financing gives you the empowerment to take on some of the big projects that need special equipment. This assists you in the expansion of your service offerings and reaching new clients, thereby driving some of the business growth.

Enhances flow of cash: Financing mainly involves fixed monthly payments, offering great predictability and stability in the flow of cash as compared with big upfront buying. This permits good financial planning along with budgeting.

Enjoy tax benefits: Based on the financing options you are selecting and your specified tax situation, there might be potential tax benefits in association with the equipment financing. It is often recommended to have a consultation with the tax advisor to understand the inferences for your business.

Earthmoving equipment financing is not limited to some of the machines but there are several things that you can finance for tackling varied construction projects such as:

Excavators

Screeners

Crushers

Blackholes

Skid steers

Dump trucks

Pavers

Bulldozers

Graders

Various financing options for earthmoving equipment

With various financing options available, selecting the correct one for your specified requirements is important. Here are some of the financing options available for earthmoving equipment:

Mortgage of the chattel: This is a financing option that helps you borrow money for buying equipment and the equipment serves as a security for the loan. On making all the repayments, you can get the complete ownership of that equipment. Chattel mortgages are one of the popular choices for contractors who require financing for specified equipment and plan to keep it for the long term.

Hire buying: As compared to the chattel mortgage, a hire purchase agreement mainly includes burrowing money for buying equipment. However, the ownership might only transfer upon some final balloon payment towards the end of the agreement. This option is suitable for situations where you require the equipment for a specified period of time but might not want to commit to complete ownership.

Leasing capital: Same as loan, ownership of equipment is transferred to you towards the end of the lease term mainly for a small final payment.

Operation lease: It provides you with a rental agreement for the equipment for a set period. This option helps you in upgrading to new equipment towards the end of the lease term without the issue of reselling the old one.

Conclusion

So, if you are looking to unlock the potential of the earthmoving business, there are many financing options available for securing the equipment financing you require for taking on new projects and attaining your goals