Ok so i am toying with the idea of buying some machinery. Just wondering how loans for this is set up.
ie how many years is financce over, is there a residual and any other info
cheers lee
Hi Lee
Dont hardly do a deal these days as very limit market place but usually over 3-4 years and residual will depend on what the machinery is.
Not a great answer but not much to go on.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
ledgend80 wrote:Ok so i am toying with the idea of buying some machinery. Just wondering how loans for this is set up.ie how many years is financce over, is there a residual and any other info
cheers lee
Equipment finance is what your after.
You can only do this sort of finance in a company name or personal purchase etc…Finance can go from 1-5 years and for bigger projects and bigger companies it can be extended to 15 years.
And yes there are residual value,but that will depend on the valuer’s comments etc..Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Lee,
Generally the 3 options for this are a lease, a commercial hire purchase, or a Chattel Mortgage. Nearly all asset finance I do is now a Chattel mortgage, which seems to suit the majority, and most accountants seem to prefer too. The machinery is bought in your name, and the bank/lender takes a mortgage over it. You pay it out, and it is yours. A good lender will allow you to be flexible with your repayment structure (for example if you have seasonal work that affects cashflow) and generally terms from 1 to 5 years.
You can also choose to have a residual or balloon payment, or have nil – again up to you with a good lender, depending on what you want to do at the end of the term (keep? sell? update?) With asset finance I arrange, we prefer the goods to be no older than 7 years at then end of the term, although this is not 'carved in stone' for large equipment & machinery.
You will get competitive rates this way too (7.5 to 9.5% depending on what it is – car is different rate to a bulldozer) and also be able to claim back your gst, interest, and depreciation.
So……go shopping!Cheers
thaks for that
say for an example if i was to buy a brand new piece of equipment for 500k including gst what is the monthly repayment that i would be looking at with or without residule. i have been offered x amount of dollars a month and just wondering if it would stack up as a viable option
ledgend80 wrote:thaks for thatsay for an example if i was to buy a brand new piece of equipment for 500k including gst what is the monthly repayment that i would be looking at with or without residule. i have been offered x amount of dollars a month and just wondering if it would stack up as a viable option
….hard to say there are many variables. Need a lot more info.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
