Plant Equipment & Machinery Finance

Finance for Your Plant, Equipment and Machinery

At Vie Financial, we understand that every business – and every purchase – is unique. We work to understand your business, working directly with your Accountant to ensure we cover every contingency and then based on our expertise determine which financier is suited to provide the finance based on your business and the type of plant and machinery you are purchasing.

We pride ourselves in having access to competitive finance for transport, construction/building, manufacturing, earthmoving, logging, mining and many other related service industries. We can also assist with vehicle finance for employees who use their own vehicle predominantly for work purposes.

Whether you’re looking to refinance an existing plant or replace an old plant with brand new equipment and machinery, Vie Financial has access to a vast variety of loan options.

From equipment hire purchases to flexible and affordable chattel mortgages, we have a lending solution for you.

We can also help find the best deals for your business and the lowest possible commercial lease financing rates. From operating leases to finances leases, you can choose from several lease solutions tailored to your business needs.

Heavy Industry Finance

Vie Financial helps businesses in the heavy industry, manufacturing, and mining finance commercial enterprise business machinery, industrial energy machinery, rail and aviation plants, materials handling equipment, and more.

We help find tailored loans and leases for plants and all types of heavy machinery, working with you to select the right financing product to help your business.

Our diverse network of lenders gives you more flexibility and savings opportunities.

Equipment Finance and Leasing Options

There are numerous equipment loan, finance, and leasing options. Some of the most common include:

  • Commercial Hire Purchase – With commercial hire purchase, the finance provider purchases the machinery or equipment on the business’s behalf. The company then “hires” the equipment from the finance provider at a fixed monthly repayment over an agreed upon period.
  • Chattel Mortgage – A chattel mortgage provides direct financing, allowing a business or operator to take ownership of equipment as soon as possible.
  • Finance Lease – A finance lease acts as a commercial loan and involves the purchase of goods for business purposes only.
  • Sale/Hire Back – A sale/hire back is established after you have purchased the equipment. It can take the form of a lease, commercial hire purchase, or a chattel mortgage.
  • Novated Lease – A novated lease is similar to commercial hire purchase. With a novated lease, the finance provider purchases the equipment on the business’s behalf, then the company “hires” the machine at a fixed monthly repayment over an agreed upon period.
  • Operating Lease – An operating lease is often used to fund computer hardware, printing equipment, telephony, and other technologies.
  • Fully Maintained Lease – This type of financing option allows you to bundle all work vehicle expenses, such as fuel and maintenance, into a single affordable monthly payment.

Operating Leases

Operating Leases are designed for industries needing to keep their plants and machinery up-to-date. An operating lease effectively serves as a rental lease, providing a heavy industry business with access to current equipment whenever old equipment breaks down or wears out.

Instead of a liability, accountants view operating leases as part of operating costs. Some lenders have exchange programmes in place to minimise costs.

Machinery Finance as a Business Overdraft

Plants and machinery are significant expenses that can cost upwards of seven figures or more. Many lenders offer a redraw facility or business overdraft to finance plant machinery and industrial equipment.

However, some lenders charge fees for redrawing on a loan, so you should discuss this option with a financial consultant to see whether or not the benefits of redrawing are higher than the costs.

Plant Machinery & Equipment FAQ

Should I buy new or used plant machinery or equipment?

Heavy industrial machinery can be quite an expense and significantly add to the initial setup costs of a business.

While depreciation will occur, it will happen at a slower rate than older plant or machinery. However, an older plant or machinery can cost substantially less and serve just as well if properly maintained.

Leasing vs. Buying – Which is right for me?

When it comes to plant and machinery financing, a business must examine its priorities.

If a plant is needed for a one-off project or another short-term use, then leasing may be a cost-effective, cash flow positive solution.

However, if you need equipment long term and its depreciation is measured in decades rather than a few years or months, buying is generally the best option.

Not only can you control a performing asset and resell the machinery for a profit over time, but it can be leased to others for a fee as well.

Why finance?

For many businesses, financing is a smart option for several reasons, including:

  • Flexible loan amounts from $5,000 to $5 million or more
  • Flexible terms up to five years or longer in certain circumstances
  • Fixed repayments and tailored monthly payments
  • Suitable for all industries and business structures
  • Can provide startup funding
  • Can be used to fund the full purchase price and GST
  • No registered mortgage debentures or additional property security required.