Equipment finance offers a number of options if you're looking to buy new equipment for your business, or replace things which are old or need upgrading. Brandon Stannett of BOQ says its flexibility, and the fact that the loan is tied to the useful life of the asset, make it a highly effective method of financing. By separating equipment finance from your regular bank borrowings, you're also able to retain those to cover growth, investment and working capital. Outlining the four most common methods of equipment finance, he stresses the importance of exploring with your banker, financial adviser and/or accountant the most suitable one for your business and the type of equipment you need. The tax implications, as well as the methods of repayment, will vary but interest rates will be comparable to those for any other type of business financing.
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