Chattel Mortgage or Hire Purchase:
Explained In the world of business finance, two prominent options stand out: the chattel mortgage and the hire purchase. Both offer businesses the opportunity to acquire essential equipment, write-off GST, depreciation, and interest, and even borrow more than the equipment’s value to cover additional expenses. The key difference lies in ownership and accounting methods. With a chattel mortgage, your business “owns” the purchases, treating them as assets on your books while paying off the loan. On the other hand, a hire purchase means the lender retains ownership of the asset, and you pay for its use over time. Choosing between the two depends on your business’s accounting preferences and long-term goals.

Is Investing More in a New Truck Worth It?
For burgeoning businesses, the temptation to cut costs during startup is understandable. However, opting for a cheaper, older truck might prove costly in the long run. Investing in a new truck offers numerous benefits, including an extended lifespan, high reliability, improved fuel economy, enhanced safety features, lower maintenance costs, and most importantly, higher resale value. A new truck, if well-maintained, can serve your business for years or even decades. While the upfront cost may be higher, it is essential to think long-term and consider the potential savings and returns. Moreover, the lower risk associated with buying new may lead to better deals on truck finance and insurance rates.

Navigating Forklift Finance:
Making the Right Choice As businesses expand into larger premises or warehouses, the need for a forklift or lift truck becomes inevitable. Determining the right forklift involves several factors. Consider whether a smaller, electric-powered forklift or one with an internal combustion engine suits your specific needs. Emissions regulations may play a role, especially when handling foodstuffs. Analyze your business’s usage requirements within the warehouse or loading trucks and find a model that aligns with those needs. While buying new might be enticing, keep in mind that market trends can change. Assess the feasibility of leasing or hiring options as well. Don’t forget to calculate the forklift’s lifetime value, including insurance, specialized training, fuel or electricity costs, and maintenance expenses over its lifespan.

Navigating IT Equipment Finance in a Changing World
The rapid pace of technological advancement, often referred to as Moore’s Law, poses unique challenges for IT equipment finance. With computer power roughly doubling every eighteen months, businesses must stay adaptable to innovation. Cloud-based computing and efficient productivity software have somewhat slowed the pace of depreciation. When financing IT equipment, consider leases that offer flexibility to keep up with emerging technologies in your industry. A rolling lease could provide access to new equipment on a fixed term, allowing you to embrace essential technology without committing to massive depreciation costs.

At Australia Finance House (AFH), we are committed to providing comprehensive solutions for your commercial equipment finance needs. With a team of experienced Relationship Managers and access to an extensive network of lenders, we tailor personalized finance options that align with your business goals. Let AFH be your trusted partner on your journey to acquiring essential equipment and securing your business’s success. Contact us today to explore your equipment finance possibilities and make informed decisions for your business’s future.