Commercial loan

Commercial equipment finance is a type of business loan that allows you to purchase or lease equipment for your business operations. Equipment can include anything from machinery, vehicles, computers, furniture, or tools. Depending on your business needs and preferences, you can choose from different types of commercial equipment finance, such as:

• Chattel mortgage: This is a loan where you own the equipment from the start, but the lender has a mortgage over it as security until you pay off the loan. You can claim depreciation and interest expenses as tax deductions, and you may also be eligible for temporary full expensing for eligible assets. You can choose the loan term, repayment frequency, and residual value that suit your cash flow and budget.

• Asset lease: This is a lease where the lender owns the equipment and you pay a fixed monthly amount to use it for a certain period. You do not have to pay a large upfront cost, and you can claim the lease payments as tax deductions. At the end of the lease term, you can either pay a residual amount to own the equipment, refinance the residual to continue the lease, or sell the equipment and start a new lease with new equipment.

• Equipment rental: This is similar to an asset lease, but with more flexibility. You can rent the equipment from the lender for a fixed term, and you can return it, extend it, or buy it at fair market value at any time. You can also upgrade or replace the equipment as your business needs change.

• Commercial hire purchase: This is a contract where the lender buys the equipment and hires it to you for a fixed term. You pay a fixed monthly amount that includes interest and principal. At the end of the term, you have the option to buy the equipment by paying the remaining balance. You can claim depreciation and interest expenses as tax deductions, and you may also be eligible for temporary full expensing for eligible assets. You can choose the contract term, repayment frequency, and residual value that suit your cash flow and budget.

Commercial equipment finance can offer many benefits for your business, such as:

• It can help you acquire the equipment you need to grow your business without paying a large upfront cost. You can spread the payments over a period of time that suits your cash flow and budget.

• It can allow you to use the equipment as security for the loan, which may reduce the interest rate and make it easier to get approved.

• It can offer you tax advantages, as you may be able to claim depreciation and interest expenses as deductions. Depending on the type of finance, you may also be eligible for temporary full expensing, which allows you to deduct the full cost of eligible assets in the year they are first used or installed.

• It can give you flexibility to choose the loan term, repayment frequency, residual value, and ownership option that suit your business needs. You can also upgrade or replace the equipment at the end of the term if needed.