Match the finance to the asset
Explain what the equipment will do, its expected use and whether it is new or used. Supplier acceptability, asset condition and valuation can affect the lender’s decision.
Equipment Loan Guidance
Invest in equipment with a workable repayment plan.
Plan equipment finance around your business needs and expected cash flow. Discuss the asset, supplier quotation and repayment budget before selecting a funding structure.
An enquiry is not a loan application approval. Availability, pricing and final terms are determined by the lender.
Who this is for
Connect the asset to its business use
A lender may review the equipment’s type, supplier, age, condition and expected use alongside business financials. For used machinery, valuation and remaining useful life can be especially relevant. Explain how the purchase supports operations and when it is expected to contribute revenue.
Purposes to discuss
- Business machinery
- Medical equipment
- Production upgrades
- Replacement equipment
Permitted use of funds depends on the chosen product.
What to understand
Look at the whole investment.
Budget beyond the purchase price
Include installation, delivery, insurance, maintenance and any taxes in your planning. Ask which expenses are financed and which require an upfront contribution.
Review ownership and security terms
The equipment may be subject to a lender’s security interest. Understand insurance obligations, repayment terms and any restrictions on selling or transferring the asset.
Prepare with purpose
Documents for a useful first discussion
Use this as a starting checklist. The chosen lender will confirm the records, format and period it needs for your case.
Use the website form for an initial enquiry. Do not include account passwords, PINs or sensitive identity numbers in the message.
Read the documents guide- Supplier quotation and equipment specifications
- Business registration and relevant licences
- Bank statements and business financial records
- Applicant identity/address and tax records
- Details of existing borrowing and proposed own contribution
From planning to review
Your equipment loan preparation path.
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Specify the equipment
Obtain a detailed quotation, specifications and supplier information.
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Calculate the complete cost
Allow for delivery, installation and expenses outside the loan.
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Prepare financial evidence
Set out existing commitments and realistic repayment cash flow.
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Review the asset terms
Confirm security, insurance, disbursal and closure obligations.
Repayment planning
Match repayment to productive use
Compare EMI and total interest against the equipment’s expected operating contribution. Leave room for servicing and downtime. Financing a purchase does not guarantee the asset will deliver the revenue in your plan.
Calculate an illustrative EMI
Questions, answered
Equipment Loan questions
Can used equipment be financed?
Some providers assess used assets, depending on age, condition, valuation and their product policy. Acceptance is not automatic.
How should I choose the repayment period?
Consider cash flow, maintenance costs and the useful life of the equipment. Compare written repayment schedules and the total cost before deciding.
A useful next step