Understanding Asset Finance for HVAC System Purchases

What is Asset Finance for HVAC Systems?

When you're self-employed and need to purchase or upgrade HVAC systems for your business, Asset Finance can provide the funding solution you're looking for. This type of commercial equipment finance allows you to acquire the heating, ventilation, and air conditioning systems your business requires without tying up your working capital.

Asset Finance works by using the HVAC equipment itself as collateral for the loan. This means the equipment you're purchasing secures the finance, which often results in more favourable terms compared to unsecured lending options. Whether you're buying new equipment or upgrading existing equipment, this financing method can help manage cashflow while getting the systems you need.

Types of Asset Finance for HVAC Equipment

There are several loan options available when it comes to financing your HVAC systems:

Chattel Mortgage
This option allows you to own the equipment from day one while making fixed monthly repayments over the agreed term. The HVAC system serves as security for the loan, and you can often claim tax benefits as the owner of the asset.

Hire Purchase
With Hire Purchase, you make regular payments throughout the life of the lease and gain ownership at the end of the term. This can be particularly useful for businesses that want to spread the cost over time while eventually owning the equipment outright.

Benefits for Self-Employed Businesses

As a self-employed business owner in Victoria, Asset Finance offers several advantages when purchasing HVAC systems:

1. Preserve Working Capital: Instead of using your cash reserves, you can maintain liquidity for other business needs
2. Tax Benefits: Depending on your structure, you may be able to claim depreciation and interest as tax deductions
3. Flexible Terms: Loan amounts and repayment periods can often be tailored to suit your business needs
4. Keep Up with Technology: Regular upgrades become more manageable when you're not outlaying large lump sums

The Application Process

Applying for Asset Finance to purchase HVAC systems involves a streamlined application process. Most lenders will require:

• Financial statements or tax returns
• Details about the equipment you're purchasing
• Information about your business and its operations
• Proof of income and business registration

As finance brokers, we can access Asset Finance options from banks and lenders across Australia, which means we can compare different loan options to find terms that work for your situation. This includes comparing factors like interest rate, loan amount limits, and repayment structures.

HVAC Equipment Covered

Asset Finance can cover a wide range of HVAC equipment, including:

• Commercial air conditioning units
• Industrial heating systems
• Ventilation equipment
• Refrigeration systems
• Ducting and installation equipment

Whether you're in construction, hospitality, retail, or any other industry requiring climate control, these finance options can help you acquire the equipment necessary for your operations.

Working with Archbold Financial

At Archbold Financial, we understand the unique challenges faced by self-employed business owners when it comes to securing finance. Our experience with equipment finance means we can guide you through the various finance options available and help you understand which type of Asset Finance might suit your circumstances.

We work with multiple lenders, which allows us to present you with various loan options rather than being limited to a single provider's products. This approach helps ensure you have access to competitive terms and can choose the finance structure that aligns with your business needs.

From work vehicles and office equipment to specialised machinery like excavators, tractors, graders, cranes, dozers, trucks, and trailers, Asset Finance covers a broad range of business equipment beyond just HVAC systems. If you're also considering other equipment purchases, we can discuss how to structure finance across multiple assets.

For self-employed individuals who may have previously found it challenging to access traditional lending, Asset Finance can offer a pathway to acquire necessary equipment while building your business's financial profile.

Ready to explore your Asset Finance options for HVAC systems? Call one of our team or book an appointment at a time that works for you.