The Ultimate Guide to Equipment Finance for IT Consultants

The Ultimate Guide to Equipment Finance for IT Consultants with Emu MoneyThe Ultimate Guide to Equipment Finance for IT Consultants with Emu Money

As an IT consultant in Australia, having the right equipment is crucial for your success in the industry. However, purchasing new equipment can be a significant financial burden, especially for small businesses and freelancers. This is where equipment finance comes in to play. Equipment finance is a financial solution that allows IT consultants to acquire the necessary equipment without having to pay the full upfront cost. Instead, you can spread the cost over time through regular repayments. This can be a game-changer for IT consultants who want to stay up-to-date with the latest technology but don't have the capital to make a large investment upfront. By opting for equipment finance, you can access the equipment you need to run your business efficiently. Whether it's computers, servers, software, or other hardware, equipment finance provides you with the means to acquire and upgrade your equipment as your business grows. One of the main advantages of equipment finance is its flexibility. It allows IT consultants to preserve their cash flow by not tying up funds in large equipment purchases. Instead, you can allocate your cash towards other areas of your business, such as marketing or expanding your clientele. In addition, equipment finance offers tax benefits for IT consultants in Australia. The lease or loan repayments may be considered as a deductible expense, reducing your taxable income and ultimately saving you money.

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What is Equipment Finance?

Equipment finance is a financial solution that allows IT consultants in Australia to acquire the necessary equipment for their businesses without paying the full upfront cost. It works through a lease or loan arrangement with a finance provider, which allows you to distribute the cost of the equipment over a period of time. Equipment finance is tailored to meet the specific needs of IT consultants. It enables you to access the latest technology and equipment required for your business operations. This can include computers, servers, software, networking devices, and other hardware necessary for your work. When you choose equipment finance, you enter into an agreement with a finance provider who purchases the equipment on your behalf. You then make regular payments, either through lease repayments or loan repayments, over an agreed-upon term. The finance provider retains ownership of the equipment during the term of the agreement. However, you have full use of the equipment and can benefit from it in your business operations. At the end of the term, you may have the option to purchase the equipment, upgrade to new equipment, or return the equipment to the finance provider. Equipment finance offers flexibility and scalability for IT consultants. It allows you to acquire the equipment you need without depleting your working capital or tying up funds in upfront purchases. Additionally, it provides tax benefits as lease or loan repayments may be considered as deductible expenses. By opting for equipment finance, IT consultants can access essential equipment while managing their cash flow effectively. In the following sections, we will explore the advantages, considerations, and different types of equipment finance available for IT consultants in Australia.

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Top 10 Types of Equipment IT Consultants Can Purchase With Equipment Finance

IT consultants can purchase a wide range of equipment using equipment finance. This includes computers, servers, and networking equipment. These essential tools allow consultants to perform tasks, store and manage data, and establish robust networks for their clients. Equipment finance provides the flexibility to acquire these necessary items without upfront costs.

Here are some common types of equipment IT Consultants can purchase with equipment finance:


Computers are the backbone of IT consultancy. They enable consultants to perform tasks, run software, and analyse data efficiently.


Servers are essential for IT consultants who handle large amounts of data or provide hosting services. They allow for centralised storage, data management, and seamless connectivity.

Networking Equipment

Networking equipment, including routers, switches, and modems, enables IT consultants to set up and maintain robust networks for their clients.


IT consultants often require specialised software for tasks such as programmeming, database management, cybersecurity, and project management.

Data Storage Solutions

With the increasing amount of data generated, IT consultants require reliable and scalable data storage solutions, such as external hard drives, solid-state drives, and cloud storage services.

Security Systems

IT consultants need to protect their clients' systems and data from cybersecurity threats. This includes investing in firewalls, antivirus software, intrusion detection systems, and encryption tools.

Collaboration Tools

Collaboration tools such as video conferencing software, project management platforms, and team communication tools facilitate seamless communication and coordination between IT consultants and their clients.

Testing and Diagnostic Equipment

IT consultants often need specialised equipment for testing and diagnosing technical issues. This can include network analysers, cable testers, and hardware diagnostic tools.

Mobile Devices

Mobile devices, including smartphones and tablets, allow IT consultants to stay connected and provide on-the-go support to their clients.


IT consultants may also require various peripherals like printers, scanners, monitors, and input devices to enhance their productivity and deliver quality services.

Top 10 Ways IT Consultants Use Equipment Finance For Growth

IT consultants can utilise equipment finance to fuel their growth. This includes upgrading technology, expanding service offerings, improving efficiency, enhancing data security, and investing in specialised equipment. Equipment finance enables consultants to scale operations, streamline communication, and adopt remote work capabilities, driving their business forward.

Here are some common reasons IT Consultants use equipment finance for growth:

Upgrading Technology

IT consultants can use equipment finance to upgrade their technology infrastructure, allowing them to stay current with the latest advancements and provide enhanced services to clients.

Scaling Operations

With equipment finance, IT consultants can access additional equipment to scale their operations as their business grows. This can include expanding their server capacity, increasing the number of workstations, or upgrading networking equipment.

Expanding Service Offerings

By utilising equipment finance, IT consultants can invest in specialised equipment to expand their service offerings. This could involve acquiring equipment for data recovery, cloud computing, cybersecurity, or specialised software for niche industries.

Remote Work Capabilities

Equipment finance enables IT consultants to invest in remote work tools and equipment such as laptops, mobile devices, and video conferencing systems, allowing them to work effectively from any location.

Improving Efficiency

IT consultants can leverage equipment finance to acquire tools and equipment that improve efficiency and productivity. This could involve purchasing software for automation, hardware for faster data processing, or ergonomic equipment for enhanced comfort and well-being.

Enhancing Data Security

With equipment finance, IT consultants can invest in advanced security systems and tools to protect their clients' sensitive data. This includes firewalls, intrusion detection systems, and encryption technologies.

Streamlining Communication

By utilising equipment finance, IT consultants can invest in communication tools and platforms that streamline collaboration with clients and team members. This includes project management software, team communication tools, and video conferencing solutions.

Specialised Testing Equipment

IT consultants may use equipment finance to acquire specialised testing equipment, such as network analysers and diagnostic tools, to troubleshoot issues more efficiently and provide accurate solutions.

Mobile Technology

Equipment finance allows IT consultants to invest in mobile technology such as smartphones and tablets, enabling them to provide on-the-go support and stay connected with clients and colleagues.

Disaster Recovery Solutions

IT consultants can utilise equipment finance to obtain backup and disaster recovery solutions, ensuring the protection and availability of critical data in the event of a system failure or data loss.

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Advantages of Equipment Finance for IT Consultants

Equipment finance for IT Consultants in Australia brings several advantages, enabling them to secure the necessary equipment for their operations. Here are some of the advantages:

Financial Flexibility

Equipment finance offers IT Consultants in Australia financial flexibility by providing affordable monthly payments instead of a large upfront investment. This allows consultants to conserve their capital and allocate funds to other essential business needs. Upgrading or replacing equipment as technology advances becomes easier, enabling consultants to stay competitive in the rapidly evolving IT industry.

Enhanced Cash Flow

By opting for equipment finance, IT Consultants can effectively manage their cash flow. Financing equipment instead of purchasing it outright allows them to spread out the cost over a fixed term. This preserves working capital for daily expenses and facilitates business growth. Maintaining a healthy financial position and seizing opportunities in the IT landscape becomes more manageable through this steady cash flow.

Access to Latest Technology

Keeping up with the latest technology is crucial for IT Consultants. Equipment finance provides access to cutting-edge equipment without the burden of upfront costs. Consultants can lease or finance the latest computers, servers, software, and other IT tools. This advantage allows them to deliver superior services and stay ahead of the competition by operating at peak efficiency.

Tax Benefits

Equipment finance offers tax advantages for IT Consultants in Australia. Depending on the leasing or financing structure, monthly payments and interest can be tax-deductible as operating expenses. Unique benefits under the Australian tax system, such as the instant asset write-off scheme, can also be leveraged. By utilising these tax benefits, IT Consultants can reduce their tax liability and maximise overall profitability.

Disadvantages of Equipment Finance for IT Consultants

When considering equipment finance for IT Consultants in Australia, it's important to be mindful of a few considerations. Here are a few potential disadvantages to think about:

Limited Ownership

Equipment finance means that IT Consultants do not have outright ownership of the equipment. While this allows for flexibility in upgrading or replacing equipment as technology advances, it also means that consultants do not have the option to modify or customise the equipment according to their specific needs. However, for many IT Consultants, the ability to access the latest technology often outweighs the desire for ownership.

Long-Term Commitment

Opting for equipment finance entails a long-term commitment through the duration of the financing agreement. Consultants need to carefully assess their long-term plans and consider if the equipment will remain relevant and useful throughout the financing period. However, with proper market research and understanding of technological advancements, this concern can be effectively managed.

Accumulated Costs

Equipment finance may result in accumulated costs over time due to interest charges and associated fees. It is crucial for IT Consultants to carefully review the terms and conditions of the financing agreement, including interest rates, monthly payments, and any additional charges. By conducting thorough financial analysis and comparing different financing options, consultants can minimise the impact of accumulated costs and make informed decisions.

Potential Depreciation

As with any technology or equipment, there is a possibility of depreciation over time. IT Consultants need to consider the projected lifespan and value of the equipment when opting for equipment finance. However, by choosing reputable equipment suppliers and conducting regular maintenance, consultants can mitigate the risk of significant depreciation and ensure optimal performance throughout the financing period.

Equipment Financing Alternatives for IT Consultants

The alternatives to equipment finance for IT Consultants include lease agreements, equipment rental, equipment sharing, and vendor financing programmes. These options provide flexibility, cost savings, short-term usage, collaboration opportunities, and specialised terms from equipment vendors. IT Consultants can explore these alternatives to suit their specific needs and financial considerations.

Here are some common alternatives to equipment finance:

Lease Agreements

Lease agreements provide IT Consultants with the option to rent equipment for a specific period, often with the opportunity to upgrade at the end of the lease term. This alternative allows consultants to access the necessary equipment without the burden of ownership, providing flexibility and cost savings.

Equipment Rental

IT Consultants can consider equipment rental as an alternative to equipment finance. This option allows for short-term use of equipment without the long-term commitment. Rental agreements usually cover maintenance and repairs, providing convenience and flexibility in adapting to changing project needs.

Equipment Sharing

IT Consultants can explore equipment sharing arrangements with other professionals or businesses in the industry. Sharing equipment allows for cost-sharing, reducing individual financial burdens. This alternative fosters collaboration and networking opportunities while optimising the use of expensive equipment.

Vendor Financing Programs

Many equipment vendors offer their own financing programmes to IT Consultants. These programmes may provide competitive rates, flexible payment options, and specialised terms that cater to the specific needs of IT professionals. Exploring vendor financing programmes can provide convenience and streamline the equipment acquisition process.

Equipment Finance Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

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Frequently Asked Questions

Still have questions about equipment finance?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What is the interest rate on equipment finance
Can I finance used equipment?
What is the typical term for equipment finance?
Do I need to provide a down payment?
Can I get equipment finance with bad credit?
Are there any tax benefits to equipment finance?
Can I pay off my equipment loan early?
Can I lease equipment instead of buying?
What is the difference between a lease and a loan?
What happens if the equipment breaks down?
Can I refinance equipment finance?
Is equipment insurance required?
Do I need a good business credit score for equipment financing?
Can I include installation, maintenance, and other costs in my loan?