The benefits of equipment finance for your business

In a competitive and changing environment, you may be looking for ways to grow your business or improve your operations. One strategy is to update your equipment. This could be because your existing equipment is near the end of its lifespan. Or perhaps you want to take advantage of emerging newer technologies.

Updating equipment could bring a range of benefits. Purchasing new vehicles or equipment may help to maximise productivity. It may also minimise downtime and repair costs. The result is efficient processes, that help you provide quality products and services for customers.

But while investing in new assets offers opportunities, it can also be expensive. Bendigo Bank Head of Cash Flow Products and Strategy, Andrew Vines, explains that “when new assets are purchased using cash reserves, this can impact cash flow and the ability to meet other demands on business working capital”.

To address this, many businesses look at equipment finance options. This may allow them to benefit from new equipment without having to use cash reserves.

Many diverse businesses could benefit from equipment finance to drive their growth and productivity. “Equipment finance is a great funding solution for our business customers,” Andrew says. “Our customers finance a broad range of assets through our equipment finance facilities. We see things like cars, trucks and trailers. Buses and coaches. Engineering plant, concrete pumps and mobile cranes. Medical equipment including x-ray and radiological equipment. Laptops, servers and other computing assets.”

Equipment finance options

There are different types of equipment finance loans that are flexible and can be tailored to suit your business needs. As Andrew explains, “Equipment finance allows businesses to preserve capital and pay for the asset over an extended period. The equipment finance facility is typically secured only against the asset being acquired.”

So, what are some options that might suit your business?

An equipment loan allows you to purchase an asset, using the equipment as security for the loan.

With a finance lease, the bank purchases and owns the asset and leases it to you for an agreed period. At the end of the term, you can make an offer to purchase the asset.

For the purchase of vehicles for employees, a novated lease may be an option. It’s designed specifically for employee motor vehicles that form part of a salary package arrangement.

Equipment finance fuelling growth: the case of AVIS Ballarat

AVIS Ballarat is a great example of a business that has benefited from equipment finance solutions.

Bendigo Bank has supported AVIS Ballarat through several growth initiatives. This included the financing of a new showroom, and adding another franchise to the business, located in West Melbourne.

“Bendigo has supported us to invest in vehicles that take us from strength to strength, and backs us through market cycles,” says AVIS Ballarat owner Darren Rix. “Bendigo Bank takes a long-term view of our business. The bank is always happy to provide finance facilities to support our growth. And loan repayments are structured to suit our needs.”

Andrew notes that building relationships with our customers like Darren, and understanding their needs over the long term, is part of Bendigo Bank’s ethos. “For us, it’s all about helping our customers to build the best businesses they can in the most efficient and cost-effective way."

Bendigo Bank has a range of equipment finance options. Its business specialists can support you to find a solution to suit your business.

Make an enquiry today.