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two baristas working in a cafe making coffee using kitchen equipment

In the ever-changing business landscape, having access to quick and flexible financing options can be a game-changer.  One such option that is gaining traction is Equipment Line Finance.

This financial tool allows businesses to acquire essential assets and equipment without the hassle of extensive financial documentation and multiple applications. 

Let’s delve into the specifics of Equipment Line Finance and explore how it can benefit different types of businesses across various industries.

What is Equipment Line Finance?

Equipment Line Finance is a financing facility that focuses on providing funds for the acquisition of equipment that is vital to a business’ operations. What sets this type of financing apart is the streamlined assessment process.

Instead of needing to provide intricate financial statements, the assessment is based primarily on the business’ bank statements for the prior 6-month period.  This approach considerably speeds up the approval process, generally with an impressive 24-hour turnaround time.

Upon approval, the facility is created with a drawdown limit- this could be up to $500,000.  This drawdown limit can be utilized for multiple purchases of equipment, giving businesses the flexibility to acquire what they need, up to the total limit of the facility.


How does it work?

Once the facility and limit are setup, each transaction with the Equipment Line Finance facility is structured as a new contact under a 5-year term, with principal and interest repayments to a nil balance at the end of the term. When a new purchase is made, an invoice for the purchase is uploaded into the lender’s online portal (this can be actioned by the client directly or by the broker).  The process is hassle-free, and the need for serial numbers is generally not a requirement, simplifying the transaction process.

With each new contract the available funds for the facility decrease. e.g. have a $500,000 facility and setup a contract for a $10,000 piece of equipment which is then drawn down, leaving $490,000 remaining available in the facility.

Businesses also have the option to pay out or pay down existing contracts within the facility using the online portal at their discretion and anytime they wish with smaller early payout costs than most traditional asset finance contracts.

The available balance for the facility increases as repayments are made on existing contracts, offering a revolving credit line that can be utilized for future equipment purchases.


Advantage of Equipment Line Finance

1.  Efficiency & Speed

Equipment Line Finance offers a rapid approval process with minimal documentation requirements, providing businesses with access to fast funding within as little as 24 hours.  This efficiency saves businesses valuable time and allows them to seize business opportunities swiftly. Purchases in future are not required to be submitted for approval and are paid within 24 hours of a correct invoice being provided.


2.  Flexibility

The ability to utilize the facility for multiple purchases up to the approved limit offers businesses the flexibility to adapt and grow without constantly seeking new financing options.  This is particularly beneficial for businesses that require a range of equipment as a part of their day-to-day operations, avoiding multiple applications in short periods of time.


3.  Cost-Effectiveness

With ZERO establishment fees and ZERO monthly account fees, Equipment Line Finance presents a cost-effective financing solution.  Businesses can focus on managing their repayments effectively without worrying about additional expenses.


4.  Diverse Application

Equipment Line Finance can be used for a wide array of assets, including catering and hospitality equipment, solar panels, technology, telephone equipment, POS (point of sale) systems, AV equipment, vehicles, trailers, and more.


I want to talk about Equipment Line Finance for my business…

If you would like to know if Equipment Line Finance is suitable for your business and individual situation, please get in contact with the Alegra Financial Solutions team. 

We are happy to walk you through the options available to you, and help support the growth of your business:  (08) 7084 1278