Any construction site would benefit from having at least one bobcat. Because of the many attachments available, these construction vehicles are as versatile as they come. Since they are versatile and relatively simple to move, store, and operate, bobcats are frequently the first plant or machinery operators get for which they may need bobcat loans.
This makes the bobcat an attractive option for anyone contemplating going into business for themselves. To make matters worse, only a select few companies can purchase bobcats. It’s hardly surprising that Australian businesses are turning to equipment loans instead of savings to fund expensive new equipment, given the high initial cost and regular upkeep requirements. You can find and compare bobcat finance loans from over 60 Australian lenders online on Business Finance Loans.
Why Get A Bobcat Loan?
There’s no denying the usefulness of heavy gear, whether transporting products or cutting down on labour costs during construction. Tools like bobcats are reliable and effective ways to simplify and speed up any task. There are benefits to getting a bobcat loan or a type of ABN Loan, including:
Avoiding An Upfront Lump Sum Payment
An enormous one-time investment can affect any business, whether a startup or an established one. A bobcat may cost hundreds of thousands of dollars, which is money that you could put to better use in other areas. Instead of paying cash, it is better to take out a loan to pay for heavy machinery. With the ability to stretch out payments, the total expenditure of cash is reduced.
Reduce Business Costs
Bobcat loans are one option for businesses looking to reduce costs. It allows you to breathe while managing your money, making it a viable choice for new companies or those trying to find cost-effective ways to upgrade their current machinery. You may locate a solution that meets your requirements and provides you with the necessary tools without breaking the bank by doing some preliminary investigation.
Most lenders on Business Finance Loans are willing to provide business loans. Companies may get the equipment they need immediately and start utilising it while paying it back over time.
Find & Compare Bobcat Finance
Since there are different types of equipment loans, you will need to find & compare bobcat finance. When deciding on a bobcat loan, you should consider the tax consequences of payments and depreciation charges, if you want it on your financial statements, and whether you want to own the bobcat at the end of the financing period.
Knowing the various types of loans available will help you choose the one that is most suitable for your company and bobcat (and whether or not you would be required to make any extra payments). There are four possible channels if you’re looking for a bobcat loan:
- Operating Lease– With an operating lease, the bobcat is only considered an asset once the lease term ends. All of its financing costs are deductible. At the end of the lease term, you can return the equipment to the lessor or purchase it from them for the agreed-upon sum.
- Chattel Mortgage- The bobcat is used as collateral in a chattel mortgage, similar to a traditional secured loan. Similar to the first financing option, your interest payments and depreciation costs will be tax deductible after the bobcat is paid off. Once the lease is over, the bobcat is yours to keep.
- Commercial Hire Purchase- In a commercial hire purchase arrangement, the bobcat is considered personal property and included in your financial accounts. Unlike bobcat depreciation, which is only deductible up to a certain amount, interest on this loan is fully deductible. After you’ve paid off the debt, the bobcat is all yours to keep (although, in some situations, you will have to make a final residual payment).
- Finance Lease– You, the lessee, will assume ownership of the bobcat and be able to keep it off the accounts throughout the term of the lease. You can claim a tax deduction for the amount that you paid toward your debt. After the end of the loan period, you may either surrender the bobcat to the lender (the lessor) or purchase it from them.
Secured Business Loans & Finance Online
We understand you are busy running your business. But acquiring the right business loan matters, and we make it easy for you. We have a simple online process, a user-friendly website and helpful experts you can contact in case you need additional information about secured business loans.
We promise you a seamless experience and help you connect with 60 different lenders from across Australia. With so many options at your disposal, you can be sure to find the loans you need to further your business and achieve your goals sooner than later.