Business and Finance, Finlease

Finlease: A finance roadmap to owning the first machine


Finance broker Finlease says starting an earthmoving business takes guts, and securing the right financing shouldn’t be the biggest obstacle.

While traditional banks might hesitate to lend to newcomers, there are smart ways to get the equipment needed to build the future. Finance broker Finlease offers these recommendations.

Alternative finance options

Banks often favour established businesses, leaving start-ups feeling frustrated. Fortunately, alternative lenders understand the potential of new ventures and offer specialised equipment finance options.

Options for used machines and private sale

A reliable, used machine can be a wise first investment, allowing companies to start generating income and build equity, instead of spending money on rentals.

Used equipment can come at a significantly lower price point, reducing upfront costs. Plus, with proper maintenance, it can deliver years of reliable service, getting the business off the ground without breaking the bank.

The 12-month strategy

A common approach for newcomers is to finance with a second-tier lender for 12 months, often with a 60 per cent or 70 per cent residual. After a year, there’ll be “runs on the board,” making it easier to refinance with a lower-rate lender.

The power of a small deposit

If you’re a homeowner, consider leveraging equity to secure a deposit for the equipment loan. This can unlock better interest rates and more favourable terms.

Timing your ABN registration

If you’re planning to start a business, consider registering your Australian Business Number (ABN) sooner rather than later. Having an ABN for over a year can make financing easier, even with mainstream lenders.

Consult a trusted broker

Finally, finding the right finance broker is crucial, especially for a new business. Seek a broker who understands the earthmoving industry and can connect to lenders who specialise in new businesses.

They’ll guide you through the options, advocate on your behalf, and help you get the best deal to launch your business with confidence.

Ready to get your earthmoving business off the ground? Contact a Finlease Equipment Finance Specialist to discuss financing solutions tailored to your needs.


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