As with any loan, if you’ve looking to finance construction equipment, it really pays to shop around and borrow from a trusted and tenured company. From low doc and full doc equipment loans, rent to own, secured and unsecured equipment loans, bank-funded loans, and even private loans. How do you know which is best for your business income and workload? We have put together a list of the most common equipment loans to try and explain just that.
Wondering about heavy machinery financing or earthmoving equipment finance? Speak with the Machinery Direct team today on 1300 794 684. We can help finance construction equipment with competitive interest rates and easy monthly repayments.
Earthmoving Equipment Finance: Low or Full Doc Loans?
Low Doc Equipment Loans
Low doc equipment loans are loans which require very minimal documentation to complete the borrowing process. Often, all that is needed is a signed and dated privacy form, the application form and any necessary proof of identification.
A low doc equipment loan will still give you access to the most competitive loan rates and types, all without the need for compiling a full list of business and supporting documentation. A low doc equipment loan will usually work for business that:
- Are ABN registered for at least 12 months
- Do not require a loan of more than $200,000
- Can provide a deposit or use a security asset
- Are buying equipment from a dealer
If you’re a business owner looking to finance construction equipment and are short on time and documentation, a low doc equipment loan might be the best choice for you.
Full Doc Equipment Loans
Unlike a low doc equipment loan, a full doc loan requires a full series of business and supporting documentation for proof of business and income. This type of loan is primarily for ABN registered businesses who are less than 1-year old. For a full proof of income, companies usually provide their most recent tax return, as well as the supporting documentation mentioned above in the low doc loans section.
Important notes about full doc loans:
- More in-depth financial analysis comparted to no or low doc loans, so wait times can be lengthy
- Can provide a higher borrowing amount
- Borrowers can enhance their credit score through the National Credit Reference Scheme
For businesses with less than 1-year of ABN registration, but need more capital to finance a diverse range of special earthmoving equipment, a full doc home loan could be your best option.
Should I Rent to Own?
Rent to own financing can be an ideal solution for both large and small businesses. This makes it ideal for companies ranging from those in a year or less of ABN registration to established companies looking to expand their current fleet or replace faulty machinery.
Common benefits of rent to own plans for earthmoving equipment finance are typically:
- Flexible loan terms, usually anywhere from 12 – 60 months
- Can strengthen your companies’ credit score with renting to ownership
- All payments are 100% tax deductable
For companies new and established looking for flexible finance options, rent to own plans are a favourable option for equipment finance.
Have more questions about heavy machinery financing or earthmoving equipment finance? Get in touch with our finance team on 1300 794 684 to get pre-approved today. We can help finance construction equipment with competitive interest rates and easy monthly repayments on your construction machinery in just 3 days!