The Ultimate Guide to Equipment Finance for Plumbing Goods Wholesalers

The Ultimate Guide to Equipment Finance for Plumbing Goods Wholesalers with Emu MoneyThe Ultimate Guide to Equipment Finance for Plumbing Goods Wholesalers with Emu Money

Plumbing Goods Wholesalers in Australia understand the importance of having the right equipment to meet the demands of their business. From pipe fittings to water heaters, ensuring a smooth supply chain is crucial for their success. However, purchasing or upgrading equipment can be a substantial financial investment. This is where equipment finance comes into play. Equipment finance provides Plumbing Goods Wholesalers with the opportunity to acquire the necessary equipment without putting a strain on their cash flow. By opting for equipment financing, wholesalers can spread out the cost of equipment acquisition over a set period, making it more manageable and allowing them to conserve their working capital for other business needs. One of the key benefits of equipment finance is the flexibility it offers. Wholesalers have the freedom to choose the equipment that best suits their requirements, whether it's upgrading existing machinery or investing in new technology. Additionally, equipment finance allows businesses to stay up to date with the latest advancements in the plumbing industry, giving them a competitive edge. Another advantage of equipment financing is the potential tax benefits. In Australia, businesses may be eligible for tax deductions on the interest and depreciation associated with their financed equipment. This can lead to significant cost savings and improve overall profitability. To determine the feasibility of equipment finance, Plumbing Goods Wholesalers can utilise an equipment finance calculator. This tool helps them estimate monthly repayments, factoring in interest rates and the desired loan term. In the following sections, we will explore the various types of equipment finance available, the application process, and the key considerations when choosing a financial institution. By understanding the ins and outs of equipment finance, Plumbing Goods Wholesalers can make informed decisions that positively impact their business growth and success.

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What is Equipment Finance?

Equipment finance is a financial solution designed to help Plumbing Goods Wholesalers in Australia acquire the equipment they need to run their businesses efficiently. It provides a means of obtaining necessary assets without incurring the full upfront cost. Instead of paying the entyre amount in one go, wholesalers can spread the cost over an agreed-upon period. The process of equipment finance involves partnering with a financial institution that specialises in providing such loans. The wholesaler and the lender agree upon the terms and conditions of the loan, including the loan amount, interest rate, and repayment period. The equipment being financed is typically used as collateral to secure the loan. Once the loan is approved, the wholesaler can acquire the desired equipment from a supplier or manufacturer. The lender then disburses the funds directly to the supplier, allowing the wholesaler to obtain the equipment promptly. The borrower then repays the loan in regular instalments over the agreed-upon period. The repayment terms for equipment finance can vary depending on the lender and the specific agreement. Typically, repayments are made in fixed instalments, ensuring a predictable payment schedule for the wholesaler's budgeting purposes. Equipment finance is especially beneficial for Plumbing Goods Wholesalers as it enables them to access the necessary equipment without tying up their working capital. It allows businesses to preserve cash flow for other operational expenses, such as inventory, marketing, and day-to-day business costs. With equipment finance, wholesalers can maintain a competitive edge by continuously upgrading their equipment to meet industry needs and standards. In the following sections, we will delve further into the different types of equipment finance options available and the factors to consider when choosing the most suitable solution for Plumbing Goods Wholesalers.

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Top 10 Types of Equipment Plumbing Goods Wholesalers Can Purchase With Equipment Finance

Plumbing Goods Wholesalers can utilise equipment finance to acquire essential tools, including plumbing tools, pipe fittings, and water heaters. These equipment options enable wholesalers to conduct repairs, meet customer demands, and provide reliable plumbing solutions.

Here are some common types of equipment Plumbing Goods Wholesalers can purchase with equipment finance:

Plumbing Tools

Plumbing Goods Wholesalers can acquire a wide range of plumbing tools, including wrenches, pipe cutters, and leak detection equipment. These tools are essential for conducting repairs and instalations.

Pipe Fittings and Connectors

To meet the demands of their customers, wholesalers can use equipment finance to purchase various pipe fittings and connectors such as elbows, tees, and couplings.

Valves and Controls

With equipment finance, wholesalers can invest in different types of valves and controls, such as ball valves, gate valves, and pressure regulators, to ensure proper flow control and system operation.

Water Heaters

Water heaters are in high demand for residential and commercial applications. Plumbing Goods Wholesalers can use equipment finance to acquire a range of water heaters, including tankless, electric, and solar-powered options.


Equipment finance enables wholesalers to purchase different types of pumps for various plumbing applications, including sump pumps, sewage pumps, and booster pumps.

Drain Cleaning Equipment

Wholesalers can invest in drain cleaning equipment, such as drain snakes and hydro-jetters, to offer comprehensive plumbing services to their customers.

Pipe Inspection Cameras

These specialised cameras allow wholesalers to inspect the internal condition of pipes and identify any issues or blockages. Equipment finance can facilitate the acquisition of this valuable diagnostic tool.

Backflow Prevention Devices

Plumbing Goods Wholesalers can utilise equipment finance to purchase backflow prevention devices, which are essential for protecting water supplies from contamination.

Irrigation Systems

With equipment finance, wholesalers can offer irrigation systems to residential and commercial clients. This includes sprinklers, drip irrigation kits, and controllers.

Water Filters and Purifiers

Wholesalers can invest in water philtres and purifiers to meet the growing demand for clean and safe drinking water. Equipment finance makes it easier to offer a variety of filtration systems.

Top 10 Ways Plumbing Goods Wholesalers Use Equipment Finance For Growth

Plumbing Goods Wholesalers can leverage equipment finance to fuel their growth by expanding their operations, upgrading technology, enhancing efficiency, improving quality, and diversifying their product range. Additionally, equipment finance allows wholesalers to meet safety standards, enhance customer service, optimise the supply chain, and support sustainability initiatives for long-term growth and success.

Here are some common reasons Plumbing Goods Wholesalers use equipment finance for growth:

Business Expansion

Plumbing Goods Wholesalers can use equipment finance to expand their operations by acquiring new equipment, allowing them to serve more customers and increase their market share.

Upgrading Technology

With equipment finance, wholesalers can invest in advanced technology and equipment, such as automated inventory systems or digital ordering platforms, to streamline their processes and stay ahead of competitors.

Increasing Product Range

Equipment finance enables wholesalers to diversify their product offerings by acquiring new equipment that allows them to expand into new product lines, attracting a broader customer base.

Enhancing Efficiency

Wholesalers can use equipment finance to purchase more efficient machinery and tools, reducing labour costs and improving overall productivity.

Improving Quality

By investing in state-of-the-art equipment, Plumbing Goods Wholesalers can enhance the quality of their products, meeting customer expectations and building a strong reputation in the industry.

Meeting Safety Standards

Equipment finance allows wholesalers to invest in safety equipment, such as personal protective equipment (PPE) or safety training tools, ensuring a safe working environment for their employees and compliance with industry regulations.

Enhancing Customer Service

Wholesalers can use equipment finance to acquire customer service tools such as CRM systems or call centre equipment, leading to better communication and improved customer satisfaction.

Expanding Service Offerings

With equipment finance, wholesalers can invest in additional service offerings, such as plumbing instalation services or maintenance and repair services, catering to a wider range of customer needs.

Optimizing Supply Chain

Equipment finance enables wholesalers to upgrade their logistics and distribution equipment, improving supply chain efficiency and reducing turnaround times.

Sustainability Initiatives

Wholesalers can use equipment finance to invest in eco-friendly equipment, such as energy-efficient machinery or water-saving devices. This helps them contribute to environmental sustainability and meet the increasing demand for green solutions.

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Advantages of Equipment Finance for Plumbing Goods Wholesalers

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

Upgraded Technology

Investing in new equipment can be expensive, especially for Plumbing Goods Wholesalers who require specialised machinery. Equipment finance allows businesses to stay up-to-date with the latest technology without depleting their cash reserves. With improved equipment, wholesalers can enhance their operational efficiency, meet customer demands more effectively, and gain a competitive edge in the market.

Flexible Repayment Options

Equipment finance offers flexible repayment options tailored to the cash flow of Plumbing Goods Wholesalers. These options include lease agreements, hire purchase, and chattel mortgages. By aligning repayments with revenue generation, businesses can manage their finances more effectively and avoid large upfront costs. This flexibility allows wholesalers to enjoy the benefits of new equipment while spreading the repayments over a period that suits their financial capabilities.

Preserves Working Capital

Opting for equipment finance allows Plumbing Goods Wholesalers to preserve their working capital. By financing equipment rather than purchasing it outright, businesses can allocate their funds towards other essential expenses, such as inventory, marketing, and business growth. This preserves liquidity, providing a financial cushion for unforeseen expenses and enabling wholesalers to seize new business opportunities.

Tax Benefits

Equipment finance offers potential tax advantages for Plumbing Goods Wholesalers. Depending on the type of finance structure chosen, businesses may be eligible for tax deductions on lease payments, depreciation, and interest expenses. These tax benefits reduce the overall cost of acquiring equipment, making it a more financially viable option. By consulting with a qualified accountant or tax advisor, wholesalers can maximise their tax benefits and make informed decisions about equipment financing.

Disadvantages of Equipment Finance for Plumbing Goods Wholesalers

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

Long-Term Financial Commitment

Equipment finance involves a long-term financial commitment, typically ranging from 2 to 7 years. Wholesalers need to carefully assess their future financial capabilities and ensure that they can sustain the ongoing repayments throughout the equipment's lifespan. It is vital to conduct thorough financial planning and projections to ensure that the investment in equipment will yield sufficient returns to cover the finance costs.

Potential Interest Costs

When opting for equipment finance, Plumbing Goods Wholesalers may be subject to interest charges, depending on the financing arrangement. While the convenience and flexibility of equipment finance are undeniable, it is essential to consider the additional cost incurred through interest payments. Wholesalers should compare interest rates, negotiate favourable terms, and factor in interest expenses when calculating the overall cost of the equipment.

Depreciation and Resale Value

Equipment tends to depreciate over time, especially in industries where technology advancements are prevalent. Plumbing Goods Wholesalers should consider the potential depreciation of the equipment they plan to finance and evaluate how the resale value might be affected in the future. It is crucial to choose equipment that retains its value or has a demand in the secondary market to mitigate potential losses.

Terms and Conditions

Equipment finance agreements come with terms and conditions that wholesalers must carefully review and understand. These agreements outline factors such as maintenance responsibilities, insurance requirements, and penalties for early termination or default. Wholesalers should thoroughly read and negotiate the terms to ensure they align with their business needs and capabilities. It is important to seek legal advice if necessary to fully comprehend the implications and obligations associated with the equipment finance arrangement.

Equipment Financing Alternatives for Plumbing Goods Wholesalers

The alternatives to equipment finance for Plumbing Goods Wholesalers include equipment leasing, hire purchase, chattel mortgage, and equipment rental. These options provide flexibility in terms of ownership, duration, and financial commitment. Wholesalers can choose the alternative that best suits their specific needs, allowing them to access necessary equipment without the burden of outright purchasing.

Here are some common alternatives to equipment finance:

Equipment Leasing

Equipment leasing allows Plumbing Goods Wholesalers to use the equipment they need without the obligation to own it. Leasing offers flexibility in terms of duration and rental payments, making it an attractive alternative to equipment finance. Wholesalers can choose to lease equipment for a specific period and return it at the end of the lease term or negotiate an option to purchase the equipment if desired.

Hire Purchase

Hire purchase provides Plumbing Goods Wholesalers with the option to acquire the equipment gradually while paying rental instalments. This arrangement allows wholesalers to test the equipment's suitability and effectiveness before committing to full ownership. Once all the instalments are paid, the equipment becomes the property of the wholesaler.

Chattel Mortgage

Chattel mortgage enables Plumbing Goods Wholesalers to purchase the equipment immediately while financing the purchase through a mortgage. With a chattel mortgage, the equipment serves as security for the loan. Once the mortgage is repaid, the ownership of the equipment transfers completely to the wholesaler.

Equipment Rental

Renting equipment is an efficient alternative for short-term or occasional needs. Plumbing Goods Wholesalers can rent equipment for specific projects or during periods of increased demand. Renting saves on upfront costs and provides access to a wide range of equipment without the financial commitment of ownership. It is a flexible option that allows wholesalers to adapt to changing business needs.

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

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What is the interest rate on equipment finance
Can I finance used equipment?
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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?