Equipment finance

A new excavator, a refrigerated truck, a laser cutter, a dental chair. Equipment is often the biggest single purchase a business makes, and paying for it outright can empty the account that pays the wages. Equipment finance spreads the cost over the asset’s working life, so the asset helps pay for itself.

How does equipment finance work?

The lender funds the purchase and takes security over the equipment, usually registered on the Personal Property Securities Register (PPSR). You use the asset in the business and make repayments over an agreed term. Because the equipment secures the loan, it is often easier to arrange than unsecured lending of the same size.

Which structure suits?

Structure	Who owns the asset	Typically suits
Chattel mortgage	You, from day one	Businesses that want ownership and may claim depreciation and GST credits
Finance lease	The lender, during the term	Businesses that prefer to treat payments as an expense
Hire purchase	The lender until the final payment	Owners who want to own the asset at the end
Rental or operating lease	The lender, always	Fast-ageing tech or equipment you plan to upgrade

Tax treatment differs between them, so speak to your accountant before choosing.

Need an answer this week? Send the 60-second enquiry now. Your details stay with one team and a real person picks it up.

The instant asset write-off

For eligible businesses with aggregated turnover under $10 million, the instant asset write-off threshold is $20,000 per asset and has been made permanent from 1 July 2026. Equipment finance and the write-off can work together, but the rules on when an asset is first used or installed matter. Our guide to buying equipment and the instant asset write-off explains the basics.

When equipment finance is not the answer

If the equipment is highly specialised, very old or hard to resell, a lender may not want to rely on it as security. In that case, an unsecured business loan or a property-secured loan can fund the purchase instead. The same applies when the business needs to buy a mix of equipment, stock and fit-out in one go.

Before you sign

• Confirm the total cost over the term, including any balloon or residual payment at the end.
• Check whether you can pay it out early and what that costs.
• Make sure insurance requirements are clear.
• Match the term to the asset’s useful life, so you are not paying for a machine you have already replaced.

Weighing up whether to finance at all? See equipment finance vs paying cash.

Quick recap

• The equipment usually secures the loan
• Keeps working capital free for day-to-day costs
• Chattel mortgage, lease or hire purchase
• Check tax treatment with your accountant

What happens when you enquire

After you enquire, a real person picks up your details and calls to talk through the purpose, the timing and how the money will be repaid. Unsecured funding is assessed mainly on bank statements and turnover. Property-secured funding is assessed on the property, with no valuation required, and interest can be prepaid or added to the loan. You see the total cost before you commit, and the credit check only happens once you decide to proceed. If the timing is tight, tell us the deadline on the first call so the work can be planned around it.

Paperwork worth gathering

A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:

• Your ABN and the legal name of the business.
• Online banking access, so recent statements can be shared through a secure read-only link.
• A rough figure for monthly turnover and the amount you need.
• A list of current loans and repayments, including any ATO payment plan.
• If property is involved, the address and roughly what is owed on it.

Getting the enquiry right

Late surprises are what slow funding down. A second property owner nobody mentioned, turnover that is lower in the statements than on the form, an amount that doubles after the first call: each one sends the assessment back to the start. If you tell us the full story at the beginning, even the awkward parts, the file only has to be worked through once.

See what you could qualify for

Ready when you are. Send your enquiry and a real person will review it and call you back. There is no credit check to enquire and no selling of your details. The only thing we ask is accuracy: tell us what you really need, what the business really turns over and how your credit really looks, so the first match is the right match.