Manufacturing Equipment Finance
Whether you're investing in a CNC machine, upgrading a packaging line or replacing a worn press brake, getting the right finance structure matters.
At Sierra Finance, we specialise in equipment finance and work with 50+ lenders to find the best fit for your manufacturing equipment purchase, with fast approvals and terms built around how your business actually operates.
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How Manufacturing Equipment Finance Works
Manufacturing equipment finance lets you spread the cost of machinery over its productive life instead of paying the full amount upfront. The lender funds the purchase, takes security over the equipment, and you make regular repayments over an agreed term, typically two to seven years depending on the asset and your business situation.
The most common structure for manufacturing equipment is a chattel mortgage, where you take ownership of the equipment from day one and claim depreciation and GST credits. This suits most manufacturers because the machinery is a long term production asset that stays in your workshop. Operating leases and commercial hire purchase are also available depending on whether you want to own the equipment outright or upgrade on a cycle.
For imported equipment, which is common with CNC machines and packaging lines from Germany, Japan, Italy and Taiwan, the process works slightly differently. We can arrange a letter of credit to pay the overseas supplier, which then converts to a chattel mortgage once the equipment arrives in Australia and clears customs. This protects both you and the seller during the shipping period.
What You Can Finance with Manufacturing Equipment Finance
We arrange manufacturing equipment finance across every sub-sector of Australian manufacturing. The equipment types we finance most regularly include:
CNC machines are the most commonly financed manufacturing asset we see. This covers vertical and horizontal machining centres, CNC lathes, CNC routers, and multi axis machines from brands like Mazak, DMG Mori, Haas, Okuma, Doosan and Fanuc. Both new and used CNC machines attract strong lender appetite, and well maintained machines from recognised brands hold solid residual value even at 10 to 15 years old.
Laser cutters and plasma cutters are a growing category as fabrication shops invest in speed and precision. Waterjet cutters, fibre lasers and CO2 laser systems all fall into this bracket.
Press brakes, guillotines, rollers and other sheetmetal forming equipment are core assets for metal fabrication workshops. These tend to be straightforward deals because lenders understand the asset class well.
Packaging and bottling lines, filling machines, wrapping equipment and labelling systems serve food, beverage and FMCG manufacturers. Forklifts, welding equipment, spray booths, compressors and industrial ovens cover the workshop essentials. Woodworking machinery including panel saws, edgebanders, wide belt sanders and timber processing equipment are common in joinery and cabinetmaking. Injection moulding machines and extrusion lines serve the plastics manufacturing sector. Printing presses, digital printers and finishing equipment round out the category.
We finance new equipment from dealers and distributors, used equipment from resellers and platforms like Machines4U, private sales between businesses, and auction purchases. Dollar values typically range from $50,000 to $500,000, though we regularly handle files above and below that range.
Who Manufacturing Equipment Finance Is For
Manufacturing equipment finance is available to any Australian business purchasing production machinery. The borrowers we work with most often include:
Metal fabrication shops and engineering workshops upgrading or expanding their machining and cutting capability. Cabinetmakers and joinery businesses investing in CNC routers, edgebanders or panel saws to bring production in house instead of outsourcing. Food and beverage manufacturers adding packaging, bottling or processing lines to increase throughput. Printing businesses replacing ageing presses or moving into digital production. Plastics manufacturers investing in moulding or extrusion equipment.
Most lenders require a minimum of 12 months ABN registration and a clean credit history for standard applications. If you're a newer business or your financials are less straightforward, low doc manufacturing equipment finance is available for eligible applicants, typically up to $250,000 to $500,000 depending on the lender and the asset. We also work with businesses that have minor credit blemishes, seasonal income patterns, or complex business structures where the right lender makes all the difference.
Why Use a Broker For Manufacturing Equipment Finance
Manufacturing equipment sits in a different category from mobile assets like trucks or excavators when it comes to lender assessment.There are no standard comparable sales databases the way there are for a Caterpillar 330 or a Kenworth T610. Lenders need to understand the specific brand, model, capability and condition of the machine, which means the way your application is presented matters more than in most other asset classes.
A broker who understands manufacturing equipment can match your deal to a lender who already knows the asset type. Some lenders specialise in CNC and fabrication equipment. Others have appetite for food processing or packaging lines. Getting this match right from the start avoids wasted time on applications that were never going to fit.
We also handle the complexity that comes with manufacturing purchases. If the equipment is imported, we structure the letter of credit and manage the transition to a chattel mortgage. If delivery, installation and commissioning costs need to be included, we negotiate with the lender to roll eligible soft costs into the facility. If you need pre-approval before committing to a supplier, we get that locked in so you can negotiate from a position of strength.
With access to 50+ lenders, we compare rates, terms and approval criteria across the market in a single application rather than you approaching banks one at a time.
Get a Free Manufacturing Equipment Finance Quote
Compare options from 50+ lenders with no obligation. One application, multiple options, and a same business day response.
Getting Manufacturing Equipment Finance
Step 1: Tell Us What You Need
Call or enquire online with the details of the equipment you're looking at, the purchase price, and whether it's new, used or imported. No paperwork needed at this stage. We'll give you an idea of what's achievable and which lenders suit your situation.
Step 2: We Match and Submit
We package your application and submit it to the lender that best fits your deal based on equipment type, your business profile and the terms you need. If you need pre-approval before committing to a purchase, we lock that in so you can negotiate with suppliers confidently.
Step 3: Approval and Settlement
Once approved, we handle all documentation through to settlement and arrange payment directly to the supplier, dealer or private seller. Most manufacturing equipment files settle within three to five business days from approval. For imported equipment with letter of credit arrangements, the timeline extends to match shipping and customs clearance.
Manufacturing Equipment Finance FAQs
Ready to Finance Manufacturing Equipment? Compare Australia's Top Lenders
Call us on 0416 960 969 or fill out the form below for a same business day response. We will compare options from 50+ lenders and come back to you with the best available options.