Business Loan vs Equipment Finance – Which Is Right for You?
Choosing between a business loan and equipment finance depends on what you're purchasing, your tax situation, and your cash flow needs. Here's how to decide.
Business Loans
- Flexible – funds can be used for any business purpose
- Unsecured options available (no asset required as security)
- Higher rates than secured equipment finance
- Good for working capital, marketing, staff, or mixed expenses
- Interest generally tax-deductible
Equipment Finance
- Secured against the equipment being purchased
- Lower rates due to security
- Tax benefits including instant asset write-off, depreciation, and GST credits
- Equipment is the collateral – personal assets may be protected
- Structured for asset purchases (trucks, machinery, vehicles)
When to Choose Each
- Choose equipment finance when purchasing a specific asset – it's generally cheaper and offers tax benefits
- Choose a business loan when you need general working capital or funding for multiple purposes
- Combine both if you need to cover the asset cost plus installation or operating costs
Get Started
Contact The Asset Financing to find the best solution for your business.
Contact The Asset Financing at theassetfinancing.com.au/contact