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A business equipment loan (also known as a chattel mortgage or bill of sale) is a loan agreement where you borrow funds to acquire an asset. You provide security for the loan by way of a mortgage to the Bank over the asset financed.

What Are The Benefits Of An Equipment Loan?

A business equipment loan gives you the ability to obtain the funds from a lender to purchase the equipment for your business. If you are obtaing equipment finance for businesses purposes? It is possible that there are tax implications regarding your equipment loan or equipment lease. You should always speak with your account before obtaining any form of finance.

+ You are generally not required to provide a deposit
+ Repayments may be tailored to suit your cashflow
+ You don’t pay GST on the loan or the repayments
+ You retain ownership of the asset throughout the term of the equipment loan
+ The interest component of the payments and the depreciation on the asset may be tax deductible, provided you use the equipment to generate assessable income.