How Can Green Equipment Finance Helps Grow Your Business?

If you’re a business owner or sole trader, you’re always looking for ways to save money, be more efficient and help your business grow. You may also be looking for ways to reduce carbon emissions and appeal to environmentally conscious existing and prospective clients. Green equipment finance solutions are a great way to do all of these.

Finance Brokers Victoria can assist you to find the right green equipment solutions to finance the purchase of energy-efficient equipment. This could include:

• solar panels
• wind turbines 
• hybrid and hybrid diesel vehicles including trucks and earth-moving equipment
• fully electric vehicles

What are the benefits of Green Energy Finance? 

There are many benefits of investing in technology using green energy finance:

1. By investing in energy-efficient equipment, you’ll be doing your bit to help the environment. 
2. You can reduce your energy bills while increasing your energy efficiency. Energy-efficient equipment uses less power than its traditional counterparts. By selecting energy-efficient equipment, you will use less energy, which can lead to significant savings over time. However, do your homework as some products are not as energy efficient as you may be led to believe.
3. You can save on ever-increasing fuel prices by switching to zero or low-emissions vehicle
4. You can help improve your business’s environmental credentials. This can be helpful if you’re trying to attract eco-conscious customers or tenders.
5. The Australian government have a number of grants, funding and tax incentives available for businesses that are considering moving to more sustainable practices. To find out more, visit the energy.gov.au website. 
6. The Victorian Government offer a registration discount of up to $100 per year for light motor vehicles classified as Zero Low Emission Vehicles (ZLEV)

What should you consider?

If you’re thinking of going green and doing your bit to combat climate change, there are a few things to consider before applying for financing:

1. Make sure the equipment you’re purchasing is actually energy efficient. 

There are many products on the market that claim to be ‘green’ but don’t live up to the claims. Do your research and make sure you’re getting the real deal. Smaller equipment will display an energy rating to help you with your purchase.

2. Make sure that the cost of the equipment is offset by the savings you’ll make 

Consider the savings you will make on your energy bills and fuel costs. If the savings are not worth the outlay, it may not be worth it from a financial point of view.

3. Make sure that you can get finance for the equipment you want to purchase. 

Not all lenders will finance green equipment, so it’s important to talk to your finance broker who can help you find one that does.

Are green loans different to traditional equipment finance? 

Green financing works in the same way as traditional equipment financing. You can choose from secured and unsecured loans as well as leasing and hire purchase options. 

What equipment finance solutions are right for my business?

A chattel mortgage is the most common finance option to purchase equipment for most businesses. The lender will use the equipment as security for the loan which means the interest rate will generally be lower. Your business will have ownership from the outset, unlike some other forms of finance. 

You will also have some flexibility when it comes to repayments. You can make a smaller monthly repayment and pay a balloon or residual payment at the end of the term. Alternatively, you could pay a higher monthly repayment to lower or eliminate the need for the balloon payment. This will depend on your cash flow

But don't despair, if your business doesn't qualify for secured finance, you still have options to get the right deal to allow a more sustainable workplace. Leasing and hiring purchases may still be an option.

Talk to the team at Finance Brokers Victoria

Talk to the professional team at Finance Brokers Victoria who is specialists in equipment finance. 

Our friendly staff can offer advice, find you the right deal and we will even do the paperwork!

Contact us at 0482 078 000 and let us help your business on the path to a more sustainable future.