Machinery Finance

Established businesses with two or more years trading and clean credit often don't need any deposit at all. Newer businesses or those with credit issues typically need 10 to 20 percent. A deposit can also help secure better rates even when it isn't strictly required.

Yes. We finance used machinery across all categories. Age limits vary by lender and asset type. Some lenders will finance machinery up to 20 years old at end of term if the asset has a strong resale market, while others cut off at 10 or 12 years. We match the file to a lender whose policy fits the asset's age and condition.

In practice the terms are used interchangeably. Machinery typically refers to heavier, higher value production assets like excavators, CNC machines and manufacturing plant. Equipment tends to cover a broader range including smaller or more specialised items like medical devices, hospitality fitouts and IT infrastructure. The finance structures and process are essentially the same.

Yes, though additional documentation is usually required. You'll need the purchase invoice from the overseas supplier, shipping and customs documentation, and evidence the asset has cleared quarantine and biosecurity where relevant. Some lenders are more comfortable with imports than others, which is another reason lender selection matters.

Most machinery finance runs 3 to 5 years, though terms from 1 to 7 years are available. The right term depends on the asset's useful life, your cashflow, and whether you plan to keep or upgrade. Balloon payments at end of term are an option to reduce monthly repayments if cashflow is the priority.

Yes, but it's more complex than financing for an established business. You'll typically need a deposit, a strong personal financial position, and potentially a guarantor. We work with several lenders who have specific start up programs for new ABNs provided the overall file stacks up.

Unlike vehicles, there's no universal Redbook for most machinery. Lenders rely on a combination of dealer pricing, auction results, independent valuations, and their own experience with the asset class. This is one of the areas where lender selection matters most. A lender familiar with your type of machinery will value it more accurately, and often more favourably, than one who doesn't regularly see that asset.

Yes. We finance private sale machinery regularly. The process is slightly different from a dealer purchase because there's no dealer invoice, so the lender may require an independent valuation or inspection depending on the asset type and value. Settlement on private sales can also take a little longer because funds go directly to the seller rather than through a dealer's finance process. We handle private sale files across all machinery types.

For most applications you'll need your ABN and business details, a quote or invoice for the machinery, your driver's licence, and recent financial information. Established businesses typically provide their last two years of tax returns and ATO notices of assessment. For low doc applications, recent BAS statements or 6 months of business bank statements can be used instead. We'll tell you exactly what's needed for your specific file upfront so there's no back and forth.

The tax treatment depends on the finance structure. With a chattel mortgage, you can claim depreciation on the asset and deduct the interest component of your repayments. You can also claim the GST on the purchase price upfront. With a finance lease, the full lease payment is typically deductible as a business expense. With rental or operating lease structures, repayments are fully deductible. Your accountant should confirm which structure gives you the best tax outcome for your situation.

Yes. We regularly arrange finance for multiple assets on a single file, whether that's two excavators for a new project or an entire workshop worth of manufacturing equipment. Some lenders prefer to bundle multiple assets into one facility, while others prefer separate contracts per asset. The right approach depends on the total value, whether the assets are from the same seller, and how you want to manage the repayments. We'll advise on the best structure.

Yes. If you own machinery outright or have significant equity in a financed asset, you can refinance to release cash back into the business. This is commonly used to fund working capital, a deposit on additional equipment, or to consolidate other business debts. The lender will assess the current market value of the machinery and your business financials to determine how much they'll lend against it.

That depends on the structure. With a chattel mortgage, you own the asset outright once the final payment is made, including any balloon or residual. With a finance lease, you'll have the option to pay the residual value and take ownership, return the asset, or refinance the residual into a new term. With rental or operating lease, you typically return the asset or negotiate a purchase price. If you've set a balloon payment, make sure you plan ahead for it because it will be due as a lump sum.

Yes. Every lender requires comprehensive insurance on the asset for the duration of the finance term, with the lender noted as an interested party on the policy. You'll need to have insurance in place before settlement. If you don't already have a policy, your existing business insurance broker can usually add the asset quickly. Some lenders can also arrange insurance as part of the finance package, though shopping around for your own policy often gets a better price.

Yes. Buckets, rippers, GPS systems, safety equipment, hydraulic hammers, and other attachments can usually be bundled into the finance along with the base machine. This is common on excavator and dozer files where the attachments can add tens of thousands to the total cost. Most lenders are comfortable financing attachments as part of the package provided they're itemised on the invoice. In some cases, aftermarket accessories purchased separately can also be included.