Equipment Finance & Equipment Loans

Equipment is usually the largest purchase a business makes after property, and paying cash for it ties up the working capital you need for wages, stock and the quiet months. Equipment finance spreads the cost across the years the asset earns, secured against the asset itself rather than against your home. You will see it called business equipment finance, commercial equipment finance, an equipment loan or simply equipment financing. They all describe the same arrangement, so use whichever term is natural to you. We arrange equipment loans for businesses across Australia, from sole traders buying a first machine to established operations adding to a fleet.

We work across the full range of business assets. That includes machinery of every kind, earthmoving, plant and construction equipment, excavators, forklifts and materials handling, cranes and lifting equipment, farm machinery, trailers, medical and dental equipment, and hospitality, retail and fitout. For trucks and commercial vehicles, see our truck loans page.

The structure matters as much as the lender. A chattel mortgage gives you ownership from day one with the lender registering a security interest, and is the usual choice for equipment you intend to keep. A finance lease or hire purchase suits businesses where the ownership timing or the accounting treatment works better. Rental suits equipment tied to a defined project or superseded quickly. Which one fits is worth settling with your accountant before the paperwork is drawn, because it changes who owns the asset and how the payments are treated.

New and used equipment are both financed routinely. What changes with age is lender appetite: older assets attract fewer lenders and usually a shorter maximum term, because the finance is expected to run out before the asset's working life does. We arrange dealer purchases, private sales and auction buys, and on a private sale the lender verifies the seller's title, pays out any existing finance and settles directly with the seller. If you are buying at auction, get pre-approved first, because auctions settle quickly and you bid without knowing the final price.

Refinancing existing equipment finance is also worth a look where your circumstances have improved since you borrowed, or where a balloon or residual is coming due. The same constraints apply, particularly the asset's age against the term you need.

Businesses that cannot produce full current financials are not shut out. Low doc business lending is assessed on bank statements, BAS or an accountant's declaration instead, and a contract or work pipeline can support a first large machine for a newer business. How your business is structured also determines who borrows and who guarantees, which we have set out in how your business structure affects finance. On the tax side, equipment bought for business use generally attracts deductions for depreciation and the interest component of the finance, and in some years an immediate write-off applies to eligible assets; our guide to the instant asset write-off explains the mechanism, and your accountant can confirm what applies to your purchase.

With access to more than 40 lenders, our job is to match the purchase to a lender that actually wants it. That is the whole value of a commercial equipment finance broker rather than a single lender's view. Appetite varies sharply on asset age, on auction and private purchases, on imports, and on how a newer business is read. Getting that right before an application is submitted is what avoids a decline and the credit enquiry that comes with it.

1. Tell us what you're buying.

Make, model, year, hours or kilometres, and where you're buying it. If you have a quote or an invoice, send it through. If you're still looking, we can work from a budget.

2. We look at your position.

Time trading, ABN and GST registration, and how the repayments fit alongside your existing commitments. Full financials if you have them, bank statements or BAS if you don't.

3. We settle the structure.

Chattel mortgage, lease, hire purchase or rental, plus term, deposit and whether a balloon suits. This is the conversation worth having with your accountant, and we'll give you what you need for it.

4. We match the deal to a lender.

From more than 40 lenders, the one whose criteria fit the asset, the purchase type and your business. One application, not five.

5. Approval.

Straightforward deals are often approved within a day or two once the lender has everything. We tell you what's outstanding rather than leaving you guessing.

6. Documents and verification.

Contracts issued for signing. On a private sale, the lender verifies the seller's ownership and checks the register against the asset's serial number.

7. Settlement.

The lender pays the supplier or seller directly, any existing finance on the asset is paid out, and the security interest is registered. You take delivery and get on with it.