Running a business in Gosford often means you need reliable vehicles to keep operations moving. Whether you're looking at work vehicles for your team, a new truck for deliveries, or specialised machinery like excavators and cranes, the upfront costs can put a real dent in your cash reserves.
That's where asset finance comes in. As Asset Finance Brokers, we see how this type of funding helps local businesses get the equipment they need while keeping their cashflow healthy.
What is Asset Finance?
Asset finance is a funding solution that lets you acquire vehicles and equipment without paying the full purchase price upfront. Instead, you spread the cost over time through structured repayments. The vehicle or equipment itself serves as collateral for the loan, which often means more favourable terms than unsecured lending.
For Gosford businesses, this means you can get that new delivery van, upgrade your fleet of work vehicles, or invest in specialised machinery without draining your working capital.
Types of Asset Finance Available
When you're buying new equipment or upgrading existing equipment, you'll typically encounter these main finance options:
Chattel Mortgage
With a chattel mortgage, you own the vehicle from day one while the lender holds security over it. This option works well for established businesses that want:
• Immediate ownership benefits
• Potential tax advantages through depreciation
• The ability to claim GST credits upfront
Hire Purchase
Under a hire purchase agreement, you make fixed monthly repayments over the life of the lease. Ownership transfers to you after the final payment. This suits businesses that prefer:
• Predictable payment schedules
• Lower initial outlay
• Protection against vehicle depreciation during the term
Operating Lease
An operating lease lets you use the vehicle without owning it. At the end of the term, you return it or have options to purchase. This works for businesses wanting:
• Lower monthly payments
• Flexibility to upgrade regularly
• Maintenance packages often included
What Vehicles Can You Finance?
Asset finance covers a wide range of vehicles and commercial equipment finance extends to various machinery types:
• Light commercial vehicles and vans
• Trucks and trailers for freight and logistics
• Excavators, dozers, and graders for construction
• Tractors and agricultural machinery
• Cranes and lifting equipment
• Factory machinery and industrial equipment
• Office equipment for business operations
The loan amount you can access depends on factors like your business's financial position, the asset's value, and your intended use for the equipment.
How the Application Process Works
Applying for Asset Finance doesn't have to be overwhelming. Here's what typically happens:
- Initial Consultation: We discuss your business needs and the type of vehicle or equipment you're considering
- Documentation: Gather financial statements, business details, and equipment specifications
- Lender Matching: As an Asset Finance Broker, we can access Asset Finance options from banks and lenders across Australia
- Assessment: Lenders review your application, considering factors like loan amount and your business's capacity to service the debt
- Approval and Settlement: Once approved, we coordinate the purchase and finance arrangements
The streamlined application process means you can focus on running your business while we handle the paperwork.
Interest Rates and Loan Terms
Interest rates for asset finance vary based on several factors:
• Your business's credit history and financial strength
• The type and age of the vehicle or equipment
• The loan amount and term length
• Current market conditions
• The specific lender and product chosen
Loan terms typically range from one to seven years, depending on the asset type. Heavy machinery like excavators or cranes might qualify for longer terms than light commercial vehicles.
Managing Your Business Cashflow
One of the key benefits of asset finance is how it helps you manage cashflow. Instead of a large upfront payment that could strain your working capital, you spread the cost over time. This approach lets you:
• Preserve cash for day-to-day operations
• Invest in multiple pieces of equipment simultaneously
• Match repayments to your business's income cycles
• Potentially claim tax deductions on interest and depreciation
Why Work with Asset Finance Brokers?
As an Asset Finance Broker serving the Gosford area, Coco Finance Broking brings several advantages to your equipment purchase:
• Access to multiple lenders and loan options rather than being limited to one bank
• Experience matching business needs with appropriate finance solutions
• Understanding of local market conditions and business requirements
• Ongoing support throughout the application and settlement process
We work with businesses across various industries, from tradies needing work vehicles to construction companies requiring heavy machinery like tractors, graders, and dozers.
Making the Right Choice for Your Business
Choosing the right asset finance option depends on your specific circumstances. Consider factors like:
• How long you plan to keep the vehicle or equipment
• Your preference for ownership versus flexibility
• Cash flow patterns and seasonal variations in your business
• Tax implications and accounting preferences
• Maintenance and warranty considerations
Whether you're a Gosford-based contractor looking at a new excavator, a logistics company expanding your truck fleet, or a manufacturer investing in factory machinery, the right finance structure can make a significant difference to your business operations.
At Coco Finance Broking, we understand that every business has unique requirements. Our role is to help you understand your finance options and connect you with lenders who can support your growth plans.
Ready to explore asset finance for your next vehicle or equipment purchase? Call one of our team or book an appointment at a time that works for you. We're here to help Gosford businesses access the funding they need to grow and succeed.
