Equipment Finance

Find finance or re-finance for the office, yellow-metal or other equipment needs that your business has.

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Speed of Funding

Within Hours
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Interest Rate

Starting at 15%
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Finance amounts

Up to R5M
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Finance amounts

From R10k
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Interest Rate

From 7%
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Speed of Funding

Takes a Few Days

What are my equipment finance options?

We specialize in finding you finance or re-finance that will suit your business.

Instalment Sales

Want to own the asset you're buying? Instalment sales might be your best bet.

Lease to Own

Need to free up cash with lower monthly instalments? A flexible equipment lease agreement may be what you need.

Rental Facilities

Looking for short term rental facilities? We've got you covered.

Choosing the right type of equipment finance

A quick overview to help you decide

Instalment Sale

Lease to Own

Rental

Repayment type

Fixed monthly over a defined period
More flexible monthly, over a flexible period
On a when-needed basis. Short or long term available

Monthly cost

Repayment plus interest
Fixed repayment that is agreed in advance
Fixed fee that is normally based on the amount of usage

End of contract

You own the asset
Option to buy
Normally no option to buy

Main drawback

You take on more balance-sheet debt
If you choose to buy, the overall cost may be higher
More expensive due to the increased flexibility

Main benefit

Tax benefit due to increased depreciation rate
Cash savings because of lower monthly payments
Monthly payment is tax deductible and you can claim VAT

Instalment Sale

Lease to Own

Repayment Type

Fixed monthly over a defined period
More flexible monthly, over a flexible period

Monthly Cost

Repayment plus interest
Fixed repayment that is agreed in advance

End of Contract

You own the asset
Option to buy

Main Drawback

You take on more balance-sheet debt
If you choose to buy, the overall cost may be higher
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Main Benefit

Tax benefit due to increased depreciation rate
Cash savings because of lower monthly payments

What type of assets can I finance?

Technology Hardware
Solar Equipment
Office Equipment & AV
Yellow Metal Machinery
Office Automation
Telecom Products
Security Equipment
Medical Equipment
Mining Equipment
Construction Equipment
Power Generation
Auto and Aviation Equipment

What is Equipment Finance?

Equipment can be purchased outright for cash or alternatively financed.  Equipment finance offers different options to purchase or acquire the right to use the equipment and generally uses the equipment as collateral.

The different types of equipment finance (also known as asset finance) differ mainly on how ownership transfers (if at all).  Sometimes the funder owns the equipment and you ‘rent’ or ‘lease’ it over a term.  At some stage you may have the ability to own it near the end of the term of the agreement; it all depends on the contractual terms.

Deciding between these options requires careful consideration of cash flow, as well as whether you actually want to own the asset, and importantly there are tax and VAT implications.

Do you qualify?

Through FundingHub, you are likely to qualify for an unsecured loan if you meet the following criteria:

  • 12 months trading history
  • An average of R60k+ revenue per month

* Figures are for example purposes only, and may vary from business to business.

The Different Types of Equipment Finance

Instalment Sale

This is the usual loan amortisation structure where you have monthly payments made up of a principal amount and an interest rate amount.

After the agreed repayment term, you will own the piece of equipment.

Lease to Own

This is a slightly different structure that normally involves an option to buy and a residual or balloon payment at the end of the lease period.

There are advantages of a lease-to-own structure like tax incentives. These are listed in the table above.

Rental

An equipment rental agreement is normally a fixed-period where you need a piece of equipment for, and then give it back to the rental company. You may opt for a long-term rental.

The advantages here are that you don't have to worry about maintenance or any complex accounting for the asset.

Equipment Refinance

Equipment refinance allows you to use the assets you own to pay for your business operations.

Equipment refinance is a quick and easy way to get access to cash when you have got paid-for assets.

The types of equipment you may be able to refinance include:

  • Aircraft and aviation equipment,
  • Yellow metal and construction equipment
  • Mining equipment,
  • Medical equipment,
  • Agricultural equipment,
  • Industrial and process equipment,
  • And more..

Cost of Equipment Finance

Equipment finance loan interest rates can range from 8% p.a upwards.

Interest is either charged on a fixed-percentage or prime-linked basis.

This is entirely dependant on the type of equipment finance option that you opt-in for.

The pricing models for lease, rental and refinance agreements are all different.

For example, if you refinance an old piece of equipment that does not have a lot of residual value, you may pay more for the loan compared with if you used a newer more valuable piece of equipment.

How Does an Equipment Finance Application Work?

We've designed our equipment finance application process to be as fast as and convenient as possible.
We only collect the most important information, and keep you informed on what you need to provide to maximise your application profile and get your best offers.

1

Step 1: Apply through FundingHub

One application form will mean you find equipment finance offers from multiple different lenders.
It's fast, and free, and fully online.

2

Step 2: Add Information and Documents

FundingHub allows you to pause an application, and finish at a later stage. We guide you through the different document requirements, and which lenders need what information.

3

Step 3: View Loan Offers

We will present you with a list of all your loan offers. This takes seconds to fetch, and the list will be continually updated as you add more information to your profile.

4

Step 4: Choose an Offer

All the specifics around, pricing, fees, speed of funds and the different lenders is laid out for you. If you have questions, we've got an independent analyst who can help you choose the right offer.

5

Step 5: Finalise Application with Lender

Once you've decided on your preferred offer, you can finalize your equipment finance application with the lender and agree on terms, rates and specifics.

Check your Equipment Finance Options

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Start now. Get finance in 48 hours.

By answering a 5 minute set of questions, you'll be able to fetch a full list of equipment finance options.

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Applications are free, and won't affect your credit score.