Commercial Equipment Loan Sunshine Beach

Brokering a commercial equipment loan to upgrade the video camera

Case Study: How Loanright Financial Services Brokered a Commercial Loan for a Home-Based Photography and Video Business to Upgrade Its Equipment

In today’s digital age, the quality of video content can make or break a business. For one home-based photography and video production business in Queensland, staying competitive meant investing in cutting-edge equipment that could deliver superior image quality and advanced recording capabilities. When the time came to upgrade their primary video camera to a professional-grade model valued at $49,995, they turned to Loanright Financial Services for expert guidance in securing the right commercial finance solution.

This case study explores how Loanright helped the business structure a commercial equipment loan that preserved cash flow, maximised tax benefits, and enabled the owner to elevate the quality of their work without financial strain.

The Client and Their Goal

The client, a self-employed professional running a photography and video recording business from home, specialised in producing marketing videos, corporate interviews, and online content for small businesses across the Sunshine Coast and Brisbane regions.

Over the past few years, the business has grown steadily thanks to repeat clients and word-of-mouth referrals. However, with the rapid evolution of camera technology, including 8K resolution, enhanced dynamic range, and advanced autofocus systems, their existing video camera was beginning to show its limitations.

To continue delivering the high production value that clients expected, the business decided to invest in a new professional video camera valued at $49,995. This camera would not only improve output quality but also allow the owner to offer new services, such as slow-motion capture and high-end cinematic production.

The client had already saved a $22,000 deposit, leaving a balance of $27,995 to be financed. Rather than depleting their business reserves or using personal credit, they sought a commercial loan solution that would be both tax-efficient and structured for affordability.

That’s when they contacted Loanright Financial Services for professional finance advice.

The Challenge

While the client had a strong income history and a loyal client base, there were a few challenges to consider:

1. Sole trader structure: As a work-from-home business owner operating under an ABN rather than a company structure, the client needed a lender comfortable with financing smaller commercial loans to sole traders.
   
2. Specialised equipment: Professional video cameras fall under specialised equipment categories, which can limit the number of lenders willing to finance them.
   
3. Cash flow management: Because income fluctuated month-to-month based on client projects, the loan needed to have flexible repayment terms to ensure affordability during slower periods.
   
4. Tax efficiency: The client wanted a finance structure that allowed them to claim GST and depreciation benefits while keeping the loan entirely in the business’s name.
   

Loanright Financial Services had to find a lending solution that addressed all these factors, ensuring the client could invest in the equipment they needed without impacting business stability.

Loanright’s Approach

Loanright began by conducting a comprehensive financial review of the business, including income statements, ABN registration, and GST history. The review confirmed that the client had consistent earnings and maintained a healthy profit margin, making them an ideal candidate for commercial finance.

After discussing the client’s short- and long-term goals, Loanright recommended a chattel mortgage structure. This option would give the client immediate ownership of the equipment, allowing them to:

• Claim GST on the purchase price in their next BAS statement.
  
• Depreciate the camera under the ATO small business asset rules.
  
• Keep repayments fixed for predictable budgeting.
  
• Retain full flexibility in how the equipment is used within the business.
  

Loanright then sourced and compared several commercial lenders in their network, focusing on those who:

• Supported sole traders and small business operators.
• Offered low fixed interest rates on equipment loans.
• Had fast approval turnaround times for business-critical assets.
  

After assessing multiple offers, Loanright identified a specialist commercial lender that could approve a $27,995 chattel mortgage with a four-year loan term and a competitive fixed interest rate. The lender also accepted minimal documentation since the client’s business financials were in order and the deposit was substantial.

The Outcome

The commercial loan was approved and settled within five business days, allowing the client to purchase the new camera immediately and begin taking on higher-value projects.

Loan structure summary:

• Total equipment cost: $49,995
  
• Deposit: $22,000
  
• Loan amount: $27,995
  
• Loan term: 48 months
  
• Interest rate: Competitive fixed rate
  
• Structure: Chattel mortgage under the client’s ABN
  

The benefits to the client were clear and immediate:

• They retained working capital to manage business expenses and marketing.
  
• The camera was 100% owned by the business from day one.
  
• They could claim GST input credits and depreciation deductions.
  
• Monthly repayments were stable and affordable, fitting neatly within their average monthly cash flow.
  

Within months of the purchase, the client began attracting larger commercial contracts, including promotional videos for local real estate agencies and online retailers, thanks to the improved production quality made possible by the new camera.

Client Feedback

The business owner expressed high satisfaction with Loanright’s service, stating:

“Loanright made the entire process simple and stress-free. I was worried about getting finance as a small business owner working from home, but they found the perfect lender who understood my needs. The new camera has completely changed the quality of my work and opened new opportunities.”

Conclusion

This case study highlights how Loanright Financial Services helps small and home-based businesses access professional finance solutions typically reserved for larger operators. By understanding the client’s business model and tailoring the loan structure for both tax efficiency and affordability, Loanright empowered the client to invest in technology that directly improved their competitiveness and profitability.

Through expertise, lender relationships, and a client-first approach, Loanright once again demonstrated that the right finance solution can help even small creative businesses achieve big results, without compromising cash flow or business growth.

Loanright Financial Services can help Sunshine Coast businesses set up commercial finance quickly.