Business equipment financing

• Equipment finance options explained

  Like all major commercial lenders, BOQ Specialist offers two product options when it comes to financing medical equipment: lease or chattel mortgage. Each has different tax benefits. Our finance specialists can talk you through these option in more detail and ensure you end up with the most effective choice for your practice.

  What is a lease:

  This is where BOQ Specialist own the equipment while your business rents it over a period of time and pay a residual amount at the end of the lease term.

  What is a chattel mortgage:

  This is where you own the equipment and BOQ Specialist provide the finance to you for the purchase, and the equipment is used as security for the loan.

• Choosing the right type of finance

  Choosing the right loan term for your equipment finance:

  It is important to finance your equipment over a term that matches the legitimate lifespan of your equipment. Don’t make the mistake of being forced to continue paying for equipment years after it has passed its used-by date.

  Because we have an in-depth understanding of the type of equipment you use, and work closely with suppliers, our specialists can help you find the right loan term that suits your cash flow and will never leave you continuing to pay for equipment that needs updating.

  Choosing the right residual:

  A residual, also referred to as a balloon, is the final payment due at the end of a loan agreement. The amount is set at the beginning of the loan and is included in your agreement and repayment schedule. The residual should match the true value of your equipment at the end of its finance period.

  Our finance specialists can help you match your final payment with the second 

• Earn reward points on your equipment purchases with a BOQ Specialist credit card

  At BOQ Specialist we like to do things differently. One of the things that makes us unique in the market is the option for our clients to purchase equipment via their BOQ Specialist credit card to earn reward points on the cost of the equipment as well as on the repayments.

  How it works:

  A lease or chattel mortgage contract is agreed to prior to you purchasing the equipment. We then temporally increase the limit on your card to allow you to make the purchase, then the transaction is transferred from the card to the agreed upon fixed term contract and you earn frequent flyer points per dollar financed. 

Equipment finance FAQs

• What is an equipment loan?

  Equipment can be funded via either a loan (chattel mortgage) or lease / rental facility. The key difference is with a chattel mortgage (loan) you own the equipment and are therefore able to claim GST on the acquisition and ongoing depreciation. A chattel mortgage can have a balloon (lump sum payable at end of term) to help reduce monthly repayments for cashflow needs). 

  Whereas with a lease or rental, the equipment is acquired by BOQS and we lease/rent the equipment to you for an agreed monthly instalment. At the end of the lease/rental period there is an agreed residual balance, for a lease this is generally inline with the anticipated value of the equipment as per ATO guidelines. 

• Do you offer finance for “used/second-hand/auctioned” equipment?

  Yes we can fund second hand equipment.

• Is there a limit on the number of equipment pieces I can get financing for?

  No limit to number of equipment pieces acquired, we understand that medical, dental and veterinary practices rely on a number of pieces of equipment in order to treat patients. 

• Is there flexibility in repayments to help my cashflow?

  Yes, we can provide fixed or variable rate options given the current rate environment, additionally in some instances for large equipment purchases we can structure repayments if the equipment is income deriving to aid in cashflow management. A balloon or residual can also help reduce monthly repayments/instalments to assist in your cashflow.

• Can my l equipment be purchased at the end of the loan or lease period?

  The residual or balloon can either be paid out in full or refinanced for an additional term. For a lease/rental if the residual is paid out in full a tax invoice transferring ownership of the equipment will be provided to you for tax purposes. 

• What type of equipment do you finance?

  We fund all types of equipment whether equipment relating to an administrative practice or office or medical, dental and veterinary equipment. Equipment can vary from small handpieces used in dental practices to large radiology and diagnostic equipment day surgery hospital needs. 

  Some of our most frequent equipment loans include:

  • Radiology
  • Imaging
  • Diagnostics
  • Treatment
  • Life support
  • Portable emergency
  • Monitoring
  • Dentistry
  • Surgical
  • Testing
  • Computers
  • Other technology