Financing a Power Generator or other Energy assets

No business can survive in the modern world without reliable power. A power generator provides electricity by running a diesel or petrol powered engine that turns an on-board alternator to generate electrical power. Power outlets on the unit allow you to plug extension cords, electric-powered tools and appliances into it. In general, the more powerful the generator, the more outlet combinations are available.

One of the things that never cease to amaze us at Cashflow Recovery, is every time there is a disaster, natural or man made is the request for financing power generators increase.

Specialised lenders operate in the market place providing cash flow friendly payment plans for capital intensive energy assets. Power related assets that can be financed include.

Approved asset list
Solar Photovoltaic (PV)
Solar Water Heating
Battery Storage
Lighting
Heating, Ventilation and Air-Conditioning (HVAC)
Boilers (gas, electricity, oil, biomass)
Cogeneration (CHP)
Electric Vehicle Charging (EV)
Engines, generators, motors, turbines (Gas, Diesel, Hybrid, Wind, Steam)
Building management systems (BMS)
Power Factor Correction (PFC)
Voltage Optimisation (VO)
Anaerobic Digestion (AD Plant) and associated equipment
Meters (embedded networks, infrastructure)
Ground and Air Source Heat Pumps

Businesses typically utilise a Chattel Mortgage to purchase Business Assets.

What is a Chattel Mortgage?

With a chattel mortgage, you are the owner from day one. In this case, the asset is the ‘chattel’ or security for the loan. You make agreed repayments until the end of the term of the loan, and the deal is done.

You can choose to have a residual or balloon payment at the end of the loan period to reduce the cost of your regular repayments. However, it’s ideal if this residual amount reflects the proposed value of the asset at the end of the loan period, so you’re not left having to pay out more than the asset is worth at the end of the term.

  • You are the owner, and you can retain ownership at the end of the term (assuming any balloon is paid) with no further payments to the lender.
  • When the asset is for business purposes, the interest on your repayments can be claimed as a tax deduction.
  • You can claim the GST on the purchase price as a tax deduction and depreciation.
  • The equipment is listed as an asset on your balance sheet from day one.

What does a Business need to have to qualify for a these types of equipment loans?

  • ABN registered for 12 months or more
  • Asset purchased from a licensed dealer
  • Purchase price up to $150,000 (larger amounts can be arranged)
  • Director / proprietor is a property owner
  • the term of the loan, and the deal is done.

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