Quantum Business Finance

The benefit of Equipment Finance is based on the concept that it is the use of an asset that makes money, rather than its outright ownership.

Generally, business assets either make you money by doing or making something, or they save you money by reducing your reliance on outsourcing.

By financing business assets you are getting an immediate benefit from a business asset while preserving working capital for stock, consumables or expansion. And the asset will pay for itself over time, as it helps you to produce income.

If structured correctly, what you pay monthly, quarterly or seasonally for that asset will be a fraction of the benefit it will bring you.

For your business, Quantum Business Finance has the expertise to choose the right bank, get the right facility, put the finance submission together, and deliver the right outcome on the best possible terms.

Our market position guarantees we get preferential interest rates, and in most instances our fee is paid by the lender.

Equipment Finance products provided by Quantum Business Finance are:

Finance Lease

This is the most common form of Lease agreement, usually preferred by private companies who like to acquire the asset at the end of the lease by offering to pay the pre-determined "residual" value. Terms, residuals and rental frequency can be structured to suit a client's specific cashflow requirements, or to maximize tax benefits during the lease period. Lease payments are usually fixed at the beginning of the Lease term, although variable rate facilities may be available for facilities over $1 million.

Operating Lease

Larger corporates and Government departments favour Operating Leases as they are treated as an "operating" rather than a "capital" expense. i.e. equipment can be acquired against an operating budget without the need to obtain capital expenditure approval. Both the asset and liability remain off the balance sheet, which leaves gearing ratios in tact.

Chattel Mortgage / Hire Purchase

Chattel Mortgage and Hire Purchase (also known as Asset Purchase) are usually preferred by private companies who like to ultimately own their equipment. These facilities often suit cashflow as a GST input credit is still available even though the asset has not been fully paid for. Fixed or variable rate structures are available over terms of up to ten years.

Interest rates are usually fixed at the beginning of the term, although variable rate facilities may be available for facilities over $1 million.

Domestic Leveraged Lease

This is traditionally one of the most cost effective ways to finance a major equipment acquisition and is often used in the financing of high-cost 'big-ticket' items in the $50m+ range. In addition to the Bank and the customer, leveraged leasing involves a third party credit provider who provides the bulk of the funds needed to acquire the leased item.

Sale & Leaseback / Sale & Hireback

In some circumstances, assets already owned can be refinanced as part of an overall corporate debt restructuring, or alternatively as a mechanism to accelerate or even defer tax deductions. This product may also be available to assist business acquisition or upgrade existing plant and machinery.