From trucks and cars to agricultural equipment, businesses can’t operate without the right tools. In this video , David Koch explains why business owners don’t need to outlay a lot of cash for the vehicle and equipment they need.

Get the equipment you need

Why vehicle and equipment finance makes sense for your business

Businesses need vehicle and equipment – there's no getting around it. For your company, that might mean a new POS system or hardware. Maybe the office equipment is due for a refurbishment or you simply need new office chairs. Perhaps your priority is buying a vehicle for your small business or upgrading your tools and machinery.

How to fund your necessary purchases

If spending your business capital isn't an option, a vehicle or equipment finance loan could be the solution. David Koch explains why.

What type of small business financing do you need?

In a nutshell, vehicle and equipment financing enables you to purchase vehicles, machinery, office equipment or other requirements on a lease or rental basis. There are several options available for small business funding, including:

  • Vehicle and equipment loan. These are business loans you take out to buy a piece of equipment. You own the asset, and the bank uses it as security (in case you default on repayments). This is the option chosen by most businesses, and makes up 78% of the market.
  • Equipment lease financing/finance lease. In this scenario, the bank or lender would own the equipment and rent it to the business for an agreed term at a fixed rental rate. At the end of the term, you have several options: return the equipment to the lender, refinance the equipment or purchase it outright.
  • Hire purchase. If you opt for this type of loan, the finance provider owns the equipment and you make repayments on it until the end of the term, when it then becomes your property.

Worried about making repayments?

It’s a concern for many business owners dealing with a cyclical cash flow, and banks are responding with flexible repayments for vehicle and equipment financing. Repayments can be matched to periods of higher cash flow – giving you peace of mind during quieter times in your business. You’re also able to borrow the full amount of the purchase price, which means you can reserve your cash flow for other areas of your business.

Important information

The information contained in this article is correct as of July 2018 and is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.

Want to keep exploring?

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After more?

Loans and finance

Starting a business or looking to expand? Our range of business loans, overdrafts, equipment and trade finance options can help you achieve your goals.

Business vehicle & equipment finance

Find the right finance solution for your vehicle and equipment needs.

NAB Business Vehicle and Equipment Loan

The easy way to purchase vehicles or equipment. Keep money in your business with no upfront deposit.

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