Top 5 Equipment Finance Options for NZ Manufacturing Businesses
Equipment Finance

Top 5 Equipment Finance Options for NZ Manufacturing Businesses

Compare the best equipment financing solutions for manufacturing companies

Introduction

Choosing the right equipment finance solution is crucial for manufacturing businesses in New Zealand. This guide compares the top financing options available, helping you make an informed decision for your equipment needs.

Finance Options Compared

Equipment Loan

Traditional equipment financing with fixed terms

Key Features

  • Fixed monthly payments
  • Equipment serves as security
  • Terms up to 7 years
  • Option to purchase at end of term

Best For

  • Long-term equipment needs
  • High-value machinery
  • Established businesses
  • Tax-efficient financing

Equipment Lease

Flexible leasing arrangements with upgrade options

Key Features

  • Lower upfront costs
  • Regular equipment upgrades
  • Maintenance included
  • Off-balance sheet financing

Best For

  • Technology-dependent equipment
  • Rapidly evolving machinery
  • Businesses wanting flexibility
  • Operating lease tax benefits

Hire Purchase

Gradual ownership through regular payments

Key Features

  • Own equipment at end of term
  • Fixed interest rates
  • Structured payments
  • Asset on balance sheet

Best For

  • Asset ownership goals
  • Long-term equipment use
  • Tax deduction benefits
  • Predictable payments

Operating Lease

Short to medium-term equipment rental

Key Features

  • No ownership obligations
  • Include maintenance
  • Flexible terms
  • Return equipment at end

Best For

  • Short-term projects
  • Testing new equipment
  • Seasonal requirements
  • Cash flow management

Line of Credit

Flexible funding for multiple equipment purchases

Key Features

  • Revolving credit facility
  • Draw funds as needed
  • Multiple purchases
  • Flexible repayment options

Best For

  • Multiple equipment needs
  • Ongoing purchases
  • Variable funding requirements
  • Quick access to funds

Key Considerations

  • Total cost of ownership
  • Tax implications
  • Maintenance requirements
  • Technology obsolescence
  • Business growth plans
  • Cash flow impact

Ready to Finance Your Equipment?

Let us help you find the best equipment finance solution for your manufacturing business.

Written by Emma Wilson

Equipment Finance Specialist