Compare equipment finance for your business. Explore options for vehicles, machinery and tools, estimate repayments, and find a structure that fits how you’ll use the equipment.
Compare equipment finance for your business. Explore options for vehicles, machinery and tools, estimate repayments, and find a structure that fits how you’ll use the equipment.
Equipment can help your business grow, but paying for a van, machinery or other essential gear upfront can put pressure on cash flow. Equipment finance lets you spread the cost over time, with the equipment often securing the loan. Compare lenders, estimate repayments and explore options that suit your business needs.
It’s a business loan for one specific asset, secured by that asset. Say you need a $45,000 tipper truck. The lender pays the dealer, and you pay the lender back, weekly, fortnightly or monthly, until the loan’s done. Interest and fees go on top.
It’s a significant part of how Australian businesses buy gear. Industry estimates put equipment finance and leasing’s share of business capital spending at well over a third, a sizeable chunk of how equipment actually gets funded rather than bought outright.
What to expect:
One thing to know: you can’t spend this money on stock or wages. It’s for the equipment. For broader costs, a general business loan is the way to go instead.
Four common options are available. The right one depends on whether you want to own the equipment, how long you’ll use it and how you’d like to repay it.
GST and tax treatment differs across these structures, how and when you can claim GST credits depends on the finance type. The ATO’s guidance on GST, hire purchase and leasing covers the detail, but talk to your accountant before choosing a structure based on tax treatment alone.
Both can fund equipment, but they work differently.
| Feature | Equipment finance | General business loan |
|---|---|---|
| What it funds | One specific asset | Stock, wages, equipment, or general costs |
| Security | The equipment itself | May be secured or unsecured |
| Typical rate | Often lower, asset backs the loan | Can be higher, especially unsecured |
| Approval speed | Fast with a supplier invoice and clean financials | Varies by lender and loan size |
| Best for | A specific, identifiable purchase | Broader or mixed business spending |
If you only need to fund one asset, equipment finance is usually the cheaper and faster route. If you need working capital alongside the purchase, a business loan may suit better.
The table shows indicative monthly repayments on a $45,000 chattel mortgage over 5 years, with and without a 20% balloon payment. It excludes fees, and real loans will differ by lender and rate.
| Structure | Interest rate (p.a.) | Monthly repayment | Total interest |
|---|---|---|---|
| No balloon | 9% | $934 | $11,040 |
| No balloon | 12% | $1,001 | $15,060 |
| 20% balloon ($9,000) | 9% | $782 | $11,920 |
| 20% balloon ($9,000) | 12% | $843 | $15,580 |
A balloon payment lowers the monthly amount, but that $9,000 lump sum still falls due at the end of the term, and it typically adds a little to the total interest paid over the life of the loan. Run your own numbers, including any fees your lender charges, in our business loan calculator.
Equipment finance eligibility depends on what you’re buying, how long you’ve been in business and your ability to manage repayments. Lenders may also assess the equipment’s value and condition when deciding whether to approve your application.
Having your documents ready can help make the application process smoother, but approval and loan terms will depend on the lender’s criteria.
Getting equipment finance is easier when you know what to prepare and what to expect.
Your supplier can give you a quote or tax invoice.
Run a few amounts, terms and balloons through our business loan calculator.
You'll usually need your ABN, ID, financials and bank statements.
See which lenders fund your type of equipment, then compare rates, fees and structure.
After approval, the lender pays the supplier and your repayments start.
We help you explore equipment finance options, compare lenders and understand the costs involved before making a decision.
Find clear, straightforward answers to common questions about equipment finance, eligibility, repayments and loan terms.
Often, yes. The lender will ask about age and condition. Some won’t fund anything that’ll be past a set age when the loan ends.
Equipment finance pays for one asset, and that asset secures it. A business loan is more flexible about what you spend it on, and some don’t need security at all.
Not always. A couple of years of trading usually helps. Newer businesses, or anyone buying specialised gear, might be asked for one.
Yes, with an ABN. Expect questions about how long you’ve been trading and what you earn.
It’s a lump sum due when the loan finishes. It brings regular repayments down, but only makes sense if you’ll have that money ready.
Many lenders allow early repayment, but fees or other charges may apply depending on your finance agreement. Check the early payout terms before signing so you understand the total cost of paying off the loan ahead of schedule.
Run the numbers, look at your options and see what participating lenders could offer before you apply. We’re here to make the comparison easier.
