How to Get the Best Equipment Loan Rates in NZ
If you want to grow your manufacturing or engineering enterprise, it’s important to be able to acquire the equipment that will be necessary for the success of your business. From laser cutters to lathes, forklifts and dedicated vehicles you will likely have a list of machinery and tools that will best support the day-to-day operations of your business.
Obtaining this equipment can be financially challenging, and your business may not have ready funds available for purchases of this size. The good news is that the GVK Finance team is here to assist you in securing equipment financing and we can help you lock in the best equipment loan rates.
In this blog, we’ll explore how equipment financing works, what types of loans are available in the New Zealand market, and steps your business can take to secure the best loan rates.
What is Equipment Financing?
Equipment financing helps businesses acquire new or used equipment without having to pay the full purchase price upfront. Whether you are looking to finance earthmoving, construction or material handling equipment, our team at GVK Finance can help secure the best loan rates for your business.
Equipment financing is designed to give your business flexibility by spreading the repayment cost over a fixed period of time. This means you can manage your cash flow effectively without needing to spend large sums of money. There are two main types of equipment financing in New Zealand, each offering different advantages depending on your business’s financial situation.
Equipment Loans
This financing option allows you to borrow money for the purpose of purchasing equipment for your business. Your business makes regular repayments until the loan is repaid on the specified date in the contract. The loan is secured against the equipment purchased, and once it has been paid off, your business has outright ownership of the equipment.
Equipment Leasing
A perfect choice for businesses looking for more flexibility. Your business will lease the desired equipment for a set period of time while making regular repayments. Once you have reached the end of the leasing term, your business has the option to purchase the equipment outright, continue to lease it, or simply return it if it’s no longer required for daily operations.
How Equipment Financing Works
Applying for an equipment loan might seem like an overwhelming process, but we are here to support you every step of the way. We’ll work with you through the application process, where a lender will assess your current financial health, creditworthiness, and the overall value of the equipment you need for your business. These factors will be used to determine your loan eligibility, terms and rates.
Securing the Best Equipment Loan Rates for Your Business
At GVK Finance, we are committed to helping small to medium sized businesses secure loans for equipment needed to support the operations of their business. Our team has extensive industry experience and knowledge combined with strong relationships with a wide network of funders. Based in Auckland, we work closely with financial providers to ensure you have access to the best finance options in the New Zealand market.
Before getting started with your application, there are a few factors that will support you in getting the best equipment loan rates to ensure there are lasting benefits for your business.
Improve Your Credit Score
Strong creditworthiness is appealing to lenders, who are then more likely to offer you a better loan rate. Your business and personal credit scores play a key role in determining the rate. It’s crucial to pay close attention to paying off and clearing any outstanding debts and correcting errors in credit reports. Also, making sure that you are lowering the amount of credit you are using compared to your total available credit limit can improve your overall credit score.
Optimise Cash Flow
Ensuring that your cash flow is in a solid position can contribute to demonstrating financial stability and your business’s ability to manage loan repayments effectively. Review your current cash flow management and make improvements accordingly by forecasting your cash needs, cutting unnecessary expenses and ensuring invoices are paid on time.
Prepare Financial Statements
Before submitting your application, gather accurate information and up-to-date financial statements. This might include documents such as profit and loss statements, cash flow statements, balance sheets and so on. Not only are these documents important to support your application, but they will also showcase that your business understands its financial position and ability to repay and service the loan.
Get in Touch
If you’re ready to secure the best equipment loan rates in New Zealand, contact the team at GVK Finance to get started and keep your business moving forward.
Our team will work with you to secure the best possible loan rate and structure for your business. Benefits include fixed or monthly payments and the option to finance equipment over short or long terms, depending on your unique requirements and needs. Our interest rates are competitive and will vary based on the amount you are borrowing, the loan term and your credit history.
By working with qualified and experienced Asset Finance Brokers, you will receive expert advice and help along with a streamlined application process. We’re here to assist your business in confidently investing in new equipment that will support the growth and success of your business.