Equipment Finance

Equipment finance for businesses

Equipment finance helps a business buy machinery, medical or diagnostic equipment, construction equipment, IT hardware or other assets without paying the full cost upfront. The equipment itself usually serves as the lender’s primary security, and the repayment period is matched to the asset’s useful life.

Early Grow helps manufacturers, healthcare providers, contractors and other businesses compare equipment finance options from partner lenders and prepare the proposal.

Common structures

• Equipment loan – you own the equipment from the start, and it is hypothecated to the lender.
• Hire purchase – ownership passes to you after the final instalment.
• Lease – you use the equipment for a period and pay rentals. The accounting and tax treatment differs from a loan, so ask your chartered accountant.
• Used equipment finance – offered by some lenders, subject to valuation and the age of the asset.

Who is it for?

Proprietorships, partnerships, LLPs and companies that need productive assets. Doctors and diagnostic centres financing medical equipment are also common applicants. Lenders look at your business vintage, turnover, profitability, banking record and credit history, and at how the equipment will generate income.

Documents usually required

• KYC of the business and its promoters.
• Business registration and GST documents.
• ITRs and financial statements, usually for the last two to three years.
• Bank statements.
• A pro forma invoice or quotation for the equipment.

How Early Grow helps

1. We understand the asset, its cost and the purpose it will serve.
2. We suggest whether a loan, hire purchase or lease is worth exploring. Please confirm tax and accounting treatment with your chartered accountant.
3. We shortlist partner lenders and compare their margin, tenure and pricing.
4. We help you compile the proposal and documents. The lender appraises it and decides.
5. The lender normally pays the equipment supplier directly.