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| Vehicle and Equipment Finance |
With equipment and vehicle finance, it gets easier to invest in new equipment. You can take the vehicle and equipment finance from reputed lenders and use the amount as your working capital. This equipment finance is apt for businesses which are established, and you need to take this finance to purchase of light commercial vehicles, trucks, cars and any office equipment. This includes manufacturing, printing and medical equipment or even any industrial equipment. Multiple companies offer this finance with different terms and conditions. For smooth running of the business, you need to choose the best lender for your business finance. All you need is to consider their interest rates, the tenure of the loans and you must check their hidden costs such as application or processing fees, late fines, pre-payment charges or foreclosing fees.
Things to consider while you choose the vehicle and equipment finance?
As mentioned, there are differences in the terms and condition of different companies offering this vehicle and equipment finance. To ensure you make the right choice in accordance with your requirement you need to consider specific factors. Some of which are listed below.
- Prepayment Penalties and Fees:
Though paying off the loan early is a choice most of us would like to make, you need to know that specific loans are charged a prepayment penalty which tends to increase the overall expense. Lenders are mainly get their profit from interest, late fine charges and processing fees of the loans. But if you close your loan account before tenure then the lender may charge you an additional amount of your outstanding loan amounts. There are quite a few companies which do not charge these prepayment penalties. Ensure you go through this factor before applying for a loan with a specific company.
- Auto Renewal Clauses and Hidden Fees:
It is important to go through the contracts and make sure you read the fine print as the hidden fees are normally mentioned here. In case you are confused in any manner, it is advisable to seek professional help. There are quite a few auto-renewal clauses that lead the company to extend the term of repayment. If you cannot repay their amount within the prescribed tenure, then the lender can extend your tenure and provide you few months extra to repay your loan. In this case, the lender can charge you an extra amount and you must check these hidden charges before you apply for vehicle and equipment finance.
- Rates:
You need to check the interest rates of the lenders and compare the same with other companies to choose the low-interest loan. The other penalties and fees can be the taxing factors in the long run. You may avail some tax deduction by seeding the loan accounts in your tax calculation. But for that, you must consult with your tax consultant and check the terms and conditions for the same.
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| Vehicle and Equipment Finance |
Types of Equipment and Vehicle Finance:
You can find different types of vehicle and equipment loans in the market and you can choose the best one according to your requirement. Listed below are some types of equipment and vehicle finance available with different companies.
1. Operating lease or rental
2. Finance Lease
3. Fleet Management and leasing
4. Chattel Mortgage or Equipment loan/commercial loan
5. Commercial Hire purchase
6. Novated Lease
7. Equipment Import finance
8. Premium Funding for Insurance
There are multiple companies listed online. For detailed information, you need to log on and find out which company offers the best deals. You can make a choice in accordance to your requirement and you must go through the terms and conditions of the different companies before signing the final loan contract.