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Business, Commercial and Equipment Finance

Car Loans

Wanting to purchase that zippy red sports car, or are you wanting to update the equipment in your processing plant for increased efficiencies?

A Better Choice Broker can help you with whatever your vehicle or equipment financing needs may be. We have numerous relationships with specialised equipment financers and we can put together the most competitive equipment finance package available.

Sound good, sounds even better when we tell you that the majority of Better Choice Mortgage Services equipment finance packages don’t require bricks and mortar security. Speedy, cost efficient and probably no real estate security that’s how equipment finance should be.

Commercial Purposes Equipment

The vast majority of equipment is financed via a chattel mortgage.  As the name implies, the equipment loan is secured by a chattel (car, dump truck, front end loader) as opposed to real estate.

It is common for the lender to lend 100% of the purchase price of the equipment.  If the equipment is specialised in any way, or the equipment is dated, or if the lender has any concerns regarding the borrower, they may seek a sizeable deposit as opposed to lending to 100% of the purchase price.

Generally the term of an equipment loan is 5 years, and sometimes 7 years.  Utilising a final balloon payment of up to 50% of the equipment purchase price may be implemented to minimise repayments during the loan term.

This is only practical if the lifespan of the equipment is more than 5 years.

The borrower has the option of paying the final balloon payment (which would be sizeable), or refinancing the balloon amount over another term of approximately 2-3 years.

Equipment Finance loans do not have the ‘bells and whistles’ associated with home loans, i.e. 100% offset and redraw.

Other types of equipment finance include:

  • Finance lease
  • Operating lease
  • Novated Lease
  • Hire Purchase

Personal Purposes Equipment

Predominantly cars, boats, motorbikes and caravans etc.

Loans are much the same as loans for commercial equipment, but generally attract a slightly higher interest rate.

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