WHAT WE FINANCE
Delphic Finance can seek quotes from multiple lenders in the market to ensure you are getting the best lender, structure and interest rate for your particular purchase.
Plant & Equipment
We have arranged finance for all types of equipment from lathes for workshops to printing equipment for large scale printing businesses. We can find the right lender for your particular asset, structure the loan appropriate to your cash flow and planned asset lifespan and then seek the most competitive interest rate & fees.
HOW WE DO IT
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.
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.
Hire Purchase / Chattel Mortgage
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 cash flow as a GST input credit is still available even though the asset has not been fully paid for. Interest rates are usually fixed at the beginning of the term.
Lo Doc Equipment Finance
We deal with many different lenders including those who will do "Lo Doc" loans. This can be particularly helpful if you are in a new business looking to add assets or if you need an asset quickly, but haven't finalised your financial accounts.