Start-Up Equipment Finance: How to Get the Fnds You Need

Launching a new business comes with big ambitions - and big expenses. From tools to commercial vehicles and specialised machinery,  many start-ups rely on key equipment to get operations off the ground. But how do you fund these essential purchases without depleting your capital?

That's where start-up equipment finance comes in. Even if your business is new or lacks trading history, there are ways to secure funding and set yourself up for long-term success.

Why Equipment Finance Makes Sense for Start-Ups

Unlike unsecured loans, equipment finance is backed by the asset itself, making it more accessible for early-stage businesses. It allows you to:

• Preserve working capital by avoiding large upfront purchases.
  
• Access the latest equipment from day one.
  
• Establish credit history for future borrowing.
  
• Align repayments with revenue to manage cash flow more effectively.
  

Funding Options Available to New Businesses

While lenders may see start-ups as higher risk, there are still finance options available if you know where to look and how to prepare:

1.  Chattel Mortgage: A popular choice for start-ups purchasing vehicles or equipment. You own the asset from day one, and the loan is secured against it. Repayments and interest may be tax-deductible, and you can often claim GST upfront.
2. Rental or Operating Lease: Ideal if you want lower upfront costs and the flexibility to upgrade equipment over time. The lender retains ownership, and you treat the repayments as a rental expense.
   
3. Low Doc or No Doc Loans: These are designed for businesses with limited financial history. While they may attract slightly higher interesr rates, they offer a practical path to funding when traditional lenders say no.
   

how To Boost Your Chances of Approval

Even as a new business, you can take proactive steps to make your application more appealing:

• Prepare a clear business plan outlining your operations, target market, and projected revenue.
  
• Contribute a deposit to reduce the lender's exposure.
  
• Offer additional security such as personal guarantees or other business assets.
  
• Work with a specialist broker like Australian Equipment Finance, who understands the unique challenges start-ups face.
  

Australian Equipment Finance's Support For New Ventures

Our team works closely with lenders open to supporting new businesses, and we help you navigate the process to give your application the best shot at success.

Ready To Launch?

Contact us today to explore how equipment finance can power your start-up forward without compromising your cash flow.