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Getting an Equipment Loan

Need a loan to buy business equipment? Bizcap can help you out.

The outlay of capital required for machinery and equipment investment is a common challenge that many small to medium businesses face. Equipment loans are an excellent solution for businesses that need to purchase or lease equipment. These loans can provide businesses with the financial resources they need to buy equipment without having to pay the full amount upfront. This page covers all things related to equipment loans, and how they can help your business grow.
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What are Equipment Loans?

Equipment loans are a type of loan that small business owners can use to purchase or lease equipment. These loans are typically secured, meaning that the equipment being financed is used as collateral. This collateral can reduce the risk for the lender, which can lead to lower interest rates for the borrower.

Equipment loans can be used to finance a variety of equipment types, including heavy machinery, office equipment, vehicles, and more. They can also be used to finance both new and used equipment, depending on the lender’s policies.

Why Get an Equipment Loan?

There are several reasons why businesses may choose to get finance to purchase equipment. Firstly, it allows businesses to acquire necessary equipment without having to pay the full amount upfront. This can be particularly beneficial for small businesses with limited cash flow. Equipment loans can also help businesses conserve their working capital.

Another advantage of equipment loans is that they can offer tax benefits. In many cases, the interest paid on an equipment loan is tax-deductible. This can result in significant savings for businesses, particularly those with high tax liabilities.
“We pride ourselves on saying yes to more customers more often – and in most cases, cash flow capital, or a bridging loan, can make a world of difference to SMEs”

- Bizcap

Types of Equipment Loans

There are several types of equipment loans available to businesses, each with its own advantages and disadvantages. The most common types of equipment loans include:

Term Loans: this type of loan provides a lump sum of money to be used for equipment purchases. Repayment terms are typically fixed, with interest rates based on the borrower’s creditworthiness.

Equipment Leases: this type of loan allows businesses to lease equipment for a set period, typically 1-5 years. At the end of the lease term, businesses can choose to purchase the equipment, return it, or lease new equipment.

Small Business Administration (SBA) Loans: the SBA offers a range of loan programs, including equipment loans. These loans are typically easier to qualify for than traditional term loans, and they can offer lower interest rates and longer repayment terms.

How Can I Choose the Right Equipment Loan for My Business?

When selecting an equipment loan, businesses should consider several factors, including the loan amount, interest rate, repayment terms, and collateral requirements. Businesses should also ensure that they are working with a reputable lender with a track record of success.
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It’s also important to consider the long-term costs of the loan. While a lower interest rate may be attractive in the short term, longer repayment terms can result in higher overall costs.Equipment loans can be a useful financial tool for businesses that need to purchase or lease equipment. Like any financing option, however, equipment loans have both advantages and disadvantages. Here are some of the main pros and cons of equipment loans:

Advantages:

Preserves working capital: Equipment loans can help businesses preserve their working capital, allowing them to use their cash flow for other expenses or investment opportunities.

Tax benefits: As mentioned earlier, equipment loans can offer several tax benefits, including deductible interest, instant asset write-offs, depreciation, and GST credits. These benefits can help reduce a business’s tax liability and improve their cash flow.

Predictable costs: Equipment loans typically have fixed interest rates and predictable repayment terms, which can help businesses budget and plan for their expenses.

Better equipment: By financing equipment with a loan, businesses can afford to purchase higher-quality equipment than they could with cash on hand. This can help improve productivity, efficiency, and competitiveness.

Disadvantages:

Interest and fees: Like any loan, equipment loans come with interest and fees, which can add to the overall cost of the equipment. Borrowers should carefully review the terms of the loan to ensure they understand the total cost of borrowing.

Collateral requirements: Equipment loans are typically secured loans, meaning that the equipment being financed is used as collateral. If the borrower defaults on the loan, the lender may repossess the equipment. This can be a risk for businesses that rely heavily on the equipment.
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Limited flexibility: Equipment loans are designed to finance specific equipment purchases or leases, and the funds cannot be used for other purposes. This can limit a business’s flexibility and ability to pivot their strategy.

Long-term commitment: Equipment loans are typically long-term commitments, with repayment terms ranging from 1 to 10 years. Borrowers should ensure they have a stable cash flow and the ability to meet the loan obligations over the long term.
“We understand how businesses work, and we work with our partners – financial advisers – to make the process easy. They also get paid industry-leading commission for funding deals through us”

- Bizcap

As stated earlier, in Australia, there are several tax benefits-applicable to equipment loans, depending on the type of loan and the specific circumstances of the borrower. Here are some of the tax benefits that may apply:

Deductible Interest: the interest paid on an equipment loan is usually tax-deductible. This means that businesses can claim a deduction for the interest paid on the loan in their tax return, reducing their taxable income and lowering their tax liability.

Instant Asset Write-Off: the Australian government has introduced an instant asset write-off scheme that allows eligible businesses to claim an immediate deduction for the cost of eligible assets, including equipment, up to a certain threshold. The threshold has varied over the years, but in the 2021-2022 financial year, it is $150,000. This means that businesses can claim the full cost of the equipment as a deduction in the year it was purchased, reducing their taxable income and tax liability.

Depreciation: in addition to the instant asset write-off, businesses can claim depreciation on the equipment purchased with an equipment loan. Depreciation allows businesses to deduct the cost of the equipment over its useful life, rather than in one lump sum. This can provide a longer-term tax benefit, as businesses can claim a deduction for the depreciated value of the equipment each year.

GST Credits: if a business is registered for Goods and Services Tax (GST), they may be able to claim GST credits on the purchase of equipment using an equipment loan. This can help to reduce the cost of the equipment, as businesses can claim back the GST paid on the purchase.

It’s important to note that the specific tax benefits applicable to equipment loans in Australia may vary depending on the type of loan, the equipment being financed, and the borrower’s individual circumstances. It’s always a good idea to consult with a tax professional to ensure that you’re taking advantage of all the tax benefits available to your business. Equipment loans can be a useful financing option for businesses that need to purchase or lease equipment.

Fast Funding for Equipment Finance

If you find yourself in a situation where you need finance to purchase equipment, lenders such as Bizcap offer SME owners access to the funds they need, within the day.
Smart solutions for SMEs

Fast Business Loans

Alleviate cash flow constraints with fast access to funds.

Learn More

Small Business Loans

Thinking of growing your business? Think Bizcap.

Learn More

Secured Business Loans

Larger loans with flexible repayment terms.

Learn More

Bridging Finance

Plug cash flow gaps at heavily reduced rates.

Learn More

Line of Credit

Now lending up to $750K. Have funds at your fingertips whenever you need them.

Learn More

Speak to a loan expert

Call now to speak with a Bizcap Loan Specialist. They can talk you through the options that best suit your needs.
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1300 922 223
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info@bizcap.com.au
PO Box 195, Balaclava VIC 3183
Support

How fast can I get a business loan approved?

Eligible businesses can get a Bizcap fast business loan approved in as little as three hours, with same-day funding available.

Timing depends on your application, the funding solution, and how quickly we receive any additional information we need.Compare our solutions here

What is a non-bank business lender and how does it work?

A non-bank lender provides business funding without being a traditional bank.

Unlike many banks, non-bank lenders may use more flexible assessment criteria. At Bizcap, we consider factors including business revenue, trading history, recent performance and individual circumstances when assessing applications.compare our solutions
The specific amount of your business loan is influenced by factors like your business's cash flow, operational duration, assets, and loan purpose. We assess these aspects to gauge your business's health and creditworthiness.

Is Bizcap a direct lender?

Yes. Bizcap is a direct lender offering business lending solutions to eligible Australian businesses without requiring a broker.

This means you deal directly with Bizcap throughout the application, assessment and funding process.

Does Bizcap work with brokers?

Yes. Bizcap works with brokers across Australia to help their clients access a range of business funding solutions.

Brokers can refer eligible clients to Bizcap and work with our team to find an appropriate funding option for their circumstances.
Delays can occur when customers provide partial or inaccurate information or supporting documents. To ensure your loan is processed as quickly as possible, be sure to provide accurate and complete information.

How much business funding can I get?

Bizcap offers business loans from $5,000 to $7.5 million and Lines of Credit up to $750,000.

How much you may be eligible for depends on the funding solution and factors such as your revenue, trading history, business performance, and individual circumstances.
Traditional banks can often take weeks to provide an outcome for a business loan application. Non-bank lenders, while generally faster than banks, can still take several days to process fast business loans. In contrast, Bizcap can grant you access to the capital you need in less than 24 hours. This exceptional speed makes Bizcap the fastest business lender in Australia and New Zealand.

What types of business loans does Bizcap offer?

Bizcap offers a range of small business financing options, including Fast Business Loans, Small Business Loans, Secured Business Loans, Bridging Finance, and Lines of Credit.

Funding ranges from $5,000 to $7.5 million depending on the product and your eligibility.
Bizcap prides itself on being a low doc lender, meaning we require fewer documents for business loans than other lenders, including both banks and non-bank lenders. This streamlined approach enables us to expedite the business loan application process, but it is still essential for applicants to provide the requested documentation in a timely manner.

Can I get a business loan to help with cash flow?  

Yes. Bizcap provides small business loans and other funding solutions that can help cover wages, suppliers, inventory and other expenses when cash flow is tight.
After you complete your application (a simple form that includes your details and business bank statements), we assess your file without running a credit check and make you a conditional offer.

Can I get a business loan funded on the same day?

Yes. Eligible businesses may receive funding on the same day their application is approved. Bizcap's fast business loans can be approved in as little as three hours, with same-day funding available.

Other Bizcap funding solutions may be available in as little as 24 hours. Actual timeframes depend on the funding solution, your application and any additional information required.

Payments are determined by factors such as the amount and consistency of the business’s cash flow, the number of years the business has been in operation, the assets owned by the business, and the proposed use of funds. We also charge an establishment fee on the loan, which is agreed upon upfront.

What is Bizcap’s business loan approval process?

To apply for a business loan, complete Bizcap’s online application and provide your business details and bank statements.

We’ll assess your application and, if eligible, may provide a conditional offer without an upfront credit check. If you choose to proceed, we may need additional information or checks before final approval and funding.
For Bizcap Fast and Small Business Loans, you will need:1. An active Australian Business Number (ABN). This demonstrates that your business is operating legally in Australia.2. At least 4 months of trading. This helps us assess your business’s stability and potential for growth.3. A monthly revenue of at least $12,000. This criterion helps us determine how much we can lend you, as well as your ability to manage and repay the loan.

To find out the eligibility criteria for Bizcap Secured Business Loans, Bridging Finance and Line of Credit, please refer to the Eligibility section of our .

Do you get a dedicated lending expert at Bizcap?

Yes. Bizcap customers have access to a dedicated Loan Specialist who can assist with their application, discuss available funding options and explain the next steps.

What can I use my business funding for?

Bizcap business funding can be used for a wide range of business purposes, including:

- Managing cash flow
- Paying suppliers
- Purchasing inventory or equipment
- Hiring staff
- Marketing
- Business expansion
- Unexpected expenses
We understand that businesses sometimes need short-term financial support, which is why we offer business loans with varying terms. If you know that you will only need a loan for a brief period, just let us know, and we can structure your loan accordingly. Businesses who qualify for our can receive up to 65% off our standard rates.

Do I need collateral to get a business loan?

Not always. Some Bizcap small business loans may be available without property being provided as upfront security.

Fast and Small Business Loans up to $30,000 may be available without upfront security, although a personal guarantee is required. Other products have different security requirements.
Fast and Small Business Loans up to $30,000 may be available without upfront security, although a personal guarantee is required. Other products have different security requirements.


Why choose Bizcap for a business loan?

As a non-bank lender, Bizcap takes an open-minded approach to business loans. We look beyond credit scores, considering your revenue, trading history and business performance to assess funding options that suit your needs.

With approvals in as little as three hours and same-day funding available for eligible businesses, you can get the funds you need, fast.
As you build a relationship with Bizcap, demonstrating your ability to reliably and punctually pay off your loan, the factor rate will likely decrease.

Can I get low doc business loans from Bizcap?

Yes. Bizcap offers a streamlined application process with minimal paperwork.

To apply for a business loan, you'll typically need your business details and bank statements to get started. Additional documents may be required depending on your application.

Can I get a business loan with bad credit?

Yes, businesses with poor credit may still be eligible for Bizcap's small business loans.

A low credit score doesn't automatically rule you out. We also consider factors such as your revenue, trading history and recent business performance.

How do repayments work on a Bizcap business loan?

Bizcap business loans can have daily or weekly repayments, depending on your approved funding arrangement.

Your repayment amount, frequency and loan term will be outlined before you accept the funding.

Does Bizcap reward early repayment on business loans?

Yes. Eligible Bizcap business loans may receive a discount for early repayment.

Can I get business funding to manage seasonal cash flow?

Yes. Bizcap offers business funding solutions that can help manage cash flow during quieter periods or cover upfront expenses before peak sales periods.

Funding can be used for inventory, wages, additional staff, marketing and supplier costs. Short term business loans can also help bridge cash flow gaps between preparing for increased demand and receiving customer revenue.

How many businesses has Bizcap helped with funding?

Bizcap has provided more than $5 billion in business funding and approved over 100,000 small business loans globally, helping businesses access funding for cash flow, expansion and other business needs.

Will applying for a business loan negatively impact my credit score?

Not initially. Bizcap can provide a conditional loan offer without conducting an upfront credit check.

If you decide to proceed with the loan, a credit check may be required before funding.

What are the eligibility requirements for a Bizcap business loan?

Eligibility depends on the funding solution.

For Bizcap Fast and Small Business Loans, businesses generally need:

- An active ABN or ACN
- At least four months of trading history
- Minimum monthly revenue of $12,000

Other Bizcap funding solutions have different eligibility requirements.

Can I use a business loan to pay for inventory and logistics costs?

Yes. Bizcap business funding can be used to purchase inventory, pay suppliers and cover transport or logistics costs.

This can help businesses manage upfront expenses without putting additional pressure on day-to-day cash flow.

Can I get a business loan while waiting for unpaid invoices?

Yes. Bizcap small business loans can help businesses manage cash flow while waiting for customers to pay outstanding invoices.

Funding can be used to cover wages, supplier payments and other operating expenses during temporary cash flow gaps.

Can I use a Bizcap business loan to purchase equipment?

Yes, Bizcap business loans can be used to purchase or upgrade equipment for your business. This includes machinery, tools, technology and other essential equipment needed to support day-to-day operations or business growth.

Can I use a business loan to buy vehicles or expand my fleet?

Yes. Subject to eligibility and assessment, Bizcap business lending can be used to purchase business vehicles or expand an existing fleet.

Can I use a business loan to hire staff or expand my business?

Yes. Bizcap small business loans can provide working capital to support business growth, including hiring staff, opening new locations and expanding services.

Funding can also be used for recruitment, wages, fit-outs, purchasing inventory or equipment, marketing and other business expansion costs.


Only once you decide to proceed with the loan do we run a hard inquiry to make the offer unconditional. If you’d like to find out how much your business would be eligible for, for an obligation-free offer.

Small business loans, approved in as little as three hours

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