Business asset finance guide

If you are a developer that also builds your own projects (developer/builder) you may need significant amounts of equipment that you need but don’t want to have the large upfront cost of ownership.

This can reduce your individual project overheads by spreading the cost of this equipment across multiple projects. It can also improve your business cashflows.

CPC Lending Solutions can provide you with the asset finance you require to lease the equipment you need to build an impressive and profitable development.

What is business asset finance?

Business asset finance is a loan that you use to lease equipment. For developer/builders, that may include:

Bulldozers
Conveyors
Cranes
Demountable buildings
Excavators
Graders
Loaders
Shipping containers
Trailers
Trucks

Crowd Property Capital has relationships with a diverse range of asset finance lenders that are keen to support property developers.

Why use business asset finance?

Asset-backed loans allow you to get the equipment you need to do the highest-quality job in the shortest amount of time.

The alternative to business asset finance would be to:

Lease the equipment with your own money – which might be an inefficient use of company money and damage your cashflow
Buy the equipment with your own money – which might have an even greater financial impact
Make do with less equipment – which might result in a slower, lower-quality build

Business asset finance offers other advantages:

No collateral needed – because the equipment itself is the security
No depreciation costs – because the equipment is owned not by your company but the asset finance company
No maintenance costs – assuming the asset finance lender has agreed to cover maintenance and repair
Rapid loan approval based on minimal business trading information such as bank and BAS activity statements.

Also, if the loan term matches the life of the asset, it’s a perfectly tailored solution.

That’s why if you organise the right business asset finance facility and use it in the right circumstances, it’s not a cost but an investment in your future profits.

What are the benefits of business asset finance?

The main benefits of business asset finance for property developers are that you can:

Protect your cashflow
Deploy your capital most efficiently
Acquire high-quality equipment in a cost-effective way
Avoid depreciation
Avoid maintenance costs
Budget easily (because asset finance payments are fixed)

But it’s important to be very selective with your choice of asset finance lenders. That’s because interest rates, fees and borrowing conditions can vary widely from lender to lender. Also, while some asset finance companies are transparent and professional, others are a nightmare to deal with due to their sneaky lending practices and poor customer service.

Need asset finance for your development projects?

Crowd Property Capital is experienced with every type of property development finance, including securing asset-backed loans for developers.

We know your specific needs and financial position are different to those of other property developers, so we’ll take the time to understand your unique circumstances. We’ll then source a reputable asset finance company that can help you secure the equipment you need, with a competitive interest rate and favourable borrowing terms.

That will maximise your chances of running a successful, profitable business.

To discuss your business asset finance options,get in touch with David Lovato.

Phone: 0434 932 634
Email: [email protected]

Get Finance

“CPC is a professional outfit, Dave displays all the top characteristics of a quality finance broker. Highly effective communication and prompt provision of requested information greatly assists in the loan assessment process benefiting both the client and the lender. His end to end knowledge of the loan application and settlement process is invaluable when navigating through sometimes complex and time sensitive scenarios”

Greg Turner - Trilogy Funds ManagementLender Testimonial

“CPC’s grounding in development management sets them apart from other finance brokers in the construction lending space. Initial assessment of project risks and deep understanding of their developer clients needs allows Solido to quickly assess his deals. Dave stays involved in the projects after initial settlement which is invaluable in assisting both developer and lender on the way through and at loan exit.”

Beau Quarry - Solido Capital Lender Testimonial

“David is highly responsive, always professional, kind and patient. We were impressed with the detail and updates provided by David throughout the lending process. David has shown a high degree of understanding in the structuring and brainstorming of an optimal funding solution, finding a suitable solution for both the capital provider, and the client”

Lender TestimonialSouth Yarra VIC

Frequently asked questions

What are examples of asset finance?

Examples of asset finance are loans for construction equipment like bulldozers, or excavators.

What is asset finance in Australia?

Asset finance in Australia refers to asset-backed loans that are used to buy specific assets like excavators.

Asset finance can also cover lease agreements, which is when lenders buy assets the developer needs and leases them back to the developer. It might also cover the repairs and maintenance costs.

What are the benefits of business asset finance?

Business asset finance benefits a developer because it frees up their cash so they don’t have to spend large sums of money buying equipment or vehicles.

In some cases, the asset finance company will also cover the repairs, so the developer only needs to budget for a fixed lease repayment cost each month.

How can I secure business asset finance?

You can secure business asset finance by contacting a finance broker, like CPC.

Alternatively, you can apply directly to a lender, although this may result in a longer, more difficult and less successful outcome than working with a finance broker.

When should I use asset finance?

Asset finance is ideal for when you need to buy an asset that would put a drain on your resources.

Asset finance in the form of a lease is also suitable when you only need an asset for a short period of time.

Legal & Compliance

Crowd Property Capital Pty Ltd (CPC)

A registered company under the Corporations Act 2001, ACN 600 539 544

An accredited member of the Finance Brokers Association of Australia (FBAA) Member No M-352808

A licensed Corporation under the Property, Stock and Business Act 2002, Corporation License No. 10065109.

A member of the Real Estate Institute of NSW (REINSW)

David Lovato (Sole Director) holds a Certificate IV in Finance and Mortgage Broking and Property Services (Real Estate Agents License No 201 604 57 )