Equipment & Asset Finance FAQs - Australia
What is equipment and asset finance?
Equipment and asset finance is structured lending used to purchase vehicles, machinery, plant, technology, and other business-critical assets without requiring a large upfront capital outlay.
How does equipment finance work in Australia?
In Australia, lenders assess the asset type, business financials, repayment capacity, and intended use of the equipment. Depending on the scenario, funding may be structured through products such as chattel mortgages, finance leases, hire purchase, or other asset-backed facilities.
What assets can be financed?
A wide range of business assets can be financed, including cars, trucks, trailers, earthmoving equipment, construction machinery, manufacturing plant, medical equipment, office technology, fit-outs, and other specialised business equipment.
Can used equipment be financed?
Yes. Many lenders will finance used equipment, subject to the age, condition, market value, and expected useful life of the asset. The type of equipment and the strength of the applicant also influence lender appetite.
What is the difference between a lease and a chattel mortgage?
A chattel mortgage generally suits businesses wanting ownership of the asset from day one, while leasing can suit businesses seeking flexibility, regular upgrade cycles, or a different tax and accounting treatment. The right structure depends on your objectives and financial position.
Can I finance multiple assets under one facility?
Yes. In many cases, multiple vehicles, machines, or equipment items can be funded under one facility, helping streamline administration and align repayments across a broader business asset program.
Can you help refinance existing equipment loans?
Yes. Refinancing can help reduce costs, improve repayment structure, consolidate multiple facilities, or release pressure on cash flow where the current lending arrangement is no longer ideal.
How quickly can equipment finance be approved?
Straightforward transactions can often be assessed and approved relatively quickly, while more complex scenarios may require additional lender review, financial information, or supporting documentation.
Can startups or newer businesses obtain equipment finance?
Yes. Startups and newer businesses can often access asset finance, particularly where the equipment itself provides strong security and the business case is commercially sound. Some lenders will also take a more flexible view depending on industry experience and overall profile.
What documents are needed for equipment finance?
This usually includes supplier quotes or invoices, business financials, ABN and entity details, director identification, bank statements, and information showing how the equipment will support business operations.
Should I use cash or finance for equipment purchases?
Many businesses choose finance to preserve working capital, maintain liquidity, and align repayments with the income or efficiency generated by the asset. Whether cash or finance is more appropriate depends on your broader business strategy and capital position.
When should I speak to you about equipment finance?
Ideally before signing supplier contracts or committing to a purchase. Early advice can help improve lender fit, structure repayments properly, reduce delays, and ensure the funding aligns with your commercial objectives.