Equipment Finance Australia

Quick answer

Equipment finance can fund eligible machinery, vehicles and other productive business assets. The suitable structure depends on the asset, its age and resale market, the business profile, available documents and how long the equipment is expected to remain useful.

Practical finance guide

Match the facility to the equipment and the work

The best equipment decision considers the repayment, ownership, balloon or residual exposure, documentation, settlement timing and useful life of the asset.

Comparison of common business asset finance structures
Structure	How it generally works	Important consideration
Chattel mortgage	The business owns the asset while the lender takes security over it.	Tax and GST treatment depends on the business; obtain accounting advice.
Finance lease	The lender owns the asset and the business pays to use it for the agreed term.	End-of-term options, residual value and total cost should be checked.
Rental or operating lease	The business pays for use and may receive bundled service options while the provider retains ownership.	Flexibility can be useful, and the complete cost and return conditions still matter.

Asset age at the end of the term

Lenders often assess the equipment's current age and expected age when the facility finishes. Older or specialised equipment may require a shorter term or additional evidence.

Income the asset is expected to produce

A replacement asset with an established workload is usually easier to explain than equipment bought for a new and untested service line.

Deposit, trade-in and residual

These can reduce scheduled repayments, but they change the amount of equity and the obligation left at the end of the term.

Documents and timing

Identity and purchase documents are always needed. Financial statements, bank statements, BAS or an accountant letter may also be requested depending on the pathway.

Define what the equipment must achieve

Start with the operational problem rather than the maximum amount available. A replacement purchase may be intended to reduce downtime, repair costs or subcontracting. An expansion purchase may add capacity, a new service or a second shift. Writing down the job, expected utilisation and timing makes it easier to judge whether the proposed asset and finance term are proportionate.

Separate confirmed benefits from forecasts. Existing utilisation records, service invoices, contracts, purchase orders or production bottlenecks can support the explanation. Forecast revenue can still be useful, but it should identify its assumptions and allow for ramp-up time. A lender decides what evidence it accepts; the purpose of preparing the information is to make the application accurate and internally consistent.

Build the complete acquisition budget

The supplier price may not be the complete project cost. Freight, installation, commissioning, software, attachments, operator training, electrical work and initial servicing can each be treated differently by a lender. An itemised quote lets the broker identify which costs can form part of the secured asset facility and which may need cash, working capital or a separate solution.

Allow for GST timing, deposits and trade-ins without assuming a particular tax outcome. A deposit can reduce debt, while a trade-in may also require a current payout and a clear discharge process. GST credits, depreciation and deductions depend on the business and structure, so the finance comparison should be taken to the accountant before relying on a tax benefit.

Compare the exit as carefully as the entry

A longer term or balloon can reduce scheduled repayments, but it can also leave debt outstanding after the equipment has become unreliable, obsolete or surplus. Compare the proposed end-of-term balance with the asset's expected working life, likely resale market and the business's replacement cycle. Specialist or custom-built equipment deserves extra caution because its value may depend on a narrow group of buyers.

Ask how early payout, extra repayments, refinancing and release of security work under the proposed facility. If the business expects to replace the asset early, the payout method and remaining balance can matter more than a small difference in the starting rate. The chosen lender's contract and final offer govern these details.

Questions worth resolving before an application

Is the asset new, used, dealer-supplied or a private sale?
Will it replace existing equipment or create a new revenue stream?
What term remains sensible given the asset's expected useful life?
Are the latest business records ready if a streamlined pathway is unavailable?

Authoritative references

Product detail

Product details, evidence and practical finance pathways

Equipment finance can be assessed using the asset specification, purchase channel, useful life, business trading profile and evidence of the work it will perform. X Lend uses these details to select lenders whose asset policy and documentation pathway suit the complete proposal.

Brands and model families

Caterpillar, Komatsu, Hitachi, Kubota, Bobcat, John Deere, JCB, Volvo Construction Equipment, Toyota Material Handling.

Assets and purchase types

earthmoving plant, trade equipment, workshop machinery, warehouse equipment, medical devices, hospitality equipment, new assets, used assets, private sales.

Useful application evidence

supplier quote, serial details, service history, bank statements, BAS, management accounts, contracts, purchase orders.

How asset condition shapes equipment finance

Hour meters, cycle counts, kilometres, service history and operating conditions explain how much productive life remains in used equipment.

Sustaining capital expenditure covers replacement and major maintenance that preserves operating capacity; expansion capital expenditure adds new capacity. A suitable term should reflect the asset's remaining productive life, likely resale market and planned replacement date.

How contracts and staged payments support the application

The application should connect the equipment to current utilisation, replacement needs, cost savings or new contracted capacity. Signed contracts, purchase orders, forward work schedules and milestone payment calendars can explain future utilisation and cash timing.

Supplier deposits, progress payments, delivery dates and final commissioning amounts should be shown on one calendar. This allows the lender to assess the total project and plan each settlement milestone.

Broker strategy

How we overcome common scenarios

Each scenario starts with the customer's goal, the available evidence and the lender policies that fit the complete application.

Scenario 1

A newer business purchasing equipment finance

Situation

The business has a shorter ABN history and confirmed work that requires the equipment finance.

How X Lend approaches it

We identify lenders that can assess recent trading conduct, industry experience and contracted work, then present the purchase as one complete operating proposal.

Useful evidence

Business bank statements, GST registration, signed work agreements, the supplier quote and evidence of the operator's experience.

Scenario 2

Used equipment finance with age or usage

Situation

The chosen asset has material age, hours or kilometres and remains suitable for the work ahead.

How X Lend approaches it

We document condition, service history, specification and resale support, then compare lenders whose end-of-term age policy fits the proposed term.

Useful evidence

Service records, inspection details, serial or VIN information, photographs, the invoice and a clear explanation of expected annual use.

Scenario 3

Growth purchase with incomplete financial statements

Situation

Current work supports the purchase while the latest full-year accounts are still being prepared.

How X Lend approaches it

We map the available alternative documents, current commitments and expected cash cycle before choosing a lender pathway that accepts those records.

Useful evidence

Recent bank statements, BAS, management accounts, an accountant letter, contracts, purchase orders and a schedule of existing finance.

Before you apply

Eligibility and documents

Every lender weighs things a little differently, that's the point of comparing 80+ of them, but most look at the same fundamentals.

What lenders assess

ABN age and GST registration, many lenders prefer an ABN that's been active for a while, though some will back newer businesses
Time trading and the consistency of income through your business bank account
The asset itself, type, condition and how old it will be at the end of the term
Credit history of the business and its directors, including any past defaults
Deposit or property backing, which can strengthen larger or borderline applications
Your existing finance commitments and how much exposure you already carry

What to have ready

Driver licence for each director or applicant
ABN and GST registration details
Recent business bank statements, usually the last few months
Supplier invoice or dealer quote for the equipment
For private sales: the seller's details, proof of ownership and an inspection where the lender requires one
For full doc applications: recent financials or BAS, low doc options often skip these for established ABNs

Rates and repayments

Estimate the repayment, then compare the full cost

Use the calculator as a guide. Eligibility, fees and the rate offered depend on the lender, purpose and applicant.

Equipment Finance repayment calculator

How much would you like to borrow?$

$5,000$500,000

Loan term

Years

Interest rate% p.a.

Balloon or residual

Estimated final balloon: $0

Your estimated repayments

per month

With 20% balloon

per month

With a 0% balloon

per month

Total interest

Total repayable

Get your quote

This calculator provides an estimate using the entered rate, term and balloon. Lender assessment, fees and repayment timing determine the final figures.

Interest rate

The percentage charged on the outstanding balance. Fixed and variable options may be available.

Comparison rate

A standardised figure that includes the interest rate and most known fees for a set example loan.

Fees and conditions

Check establishment, monthly and early payout fees, plus any balloon or residual amount.

The four step approval process

Step 01
Enquire
Send us a few details to start. We can usually explain the available pathway within a few hours.
Step 02
We Find Your Lender
We compare your deal across 80+ lenders and match it to the ones most likely to approve it at the sharpest rate.
Step 03
Lender Approval
We package and submit your application, negotiate the terms, and come back to you with a clear approval.
Step 04
Settlement
We handle the paperwork, get your documents signed, and your loan settles, funds released to you or the seller.

Get a Quote

Available structures

Choose a structure that fits the purchase

There's no single right way to fund equipment, the structure should follow your cashflow, your tax position and how long you'll keep the gear. These are the options we compare for you.

Chattel mortgage

You own the equipment from day one and the lender takes security over it. It's the most common structure for businesses that want to claim GST on the purchase and depreciate the asset, your accountant can confirm what applies to you.

Finance lease

The lender owns the gear and you lease it for a fixed term, usually with options to buy, extend or return at the end. Suits businesses that prefer predictable payments and regular equipment upgrades.

Rent to own and hire purchase

You make payments toward eventual ownership, with the asset transferring once the final payment is made. Handy where lender policy or your accounting treatment makes outright ownership less attractive up front.

Balloon and residual payments

A lump sum left to the end of the term lowers the monthly repayment while the gear is out earning. Balloon sizes vary by lender and asset, and we'll model the tradeoff before you commit.

Low doc vs full doc

Low-document approvals can use trading history and asset strength. Full-document applications use completed financial information and can provide access to sharper rates or larger amounts. We explain which pathway fits the available evidence.

Terms, deposits and asset age

Terms typically run one to seven years depending on the lender and the asset's working life. Many lenders fund gear with no deposit; older or specialised equipment sometimes needs a deposit or a shorter term to fit policy.

The basics

Invest in the gear that pays off.

Compare equipment finance across 80+ lenders for machinery, plant, tools, IT and eligible fit-outs, including low-doc options.

From excavators to espresso machines, the right equipment makes work easier, faster and more profitable. X Lend is a finance broker: we take one application and compare it across 80+ banks and nonbank lenders so you can fund the gear that grows the business and claim it at tax time.

We arrange finance for new and used equipment, dealer or private sale, and structure it as a chattel mortgage, hire purchase or rental to suit your cashflow and accountant's advice. That keeps your working capital free for wages, stock and the day to day.

Because we shop the whole panel, established ABNs can often access low doc approvals without full financials, and specialised or used gear that a single bank might decline can still find a home. We keep it plain English and only lodge once you're ready.

Important to know.

Established businesses don't always need a full financial pack: low doc approvals of up to $500K are often available on trading history alone, and many equipment deals settle within 48 to 72 hours once documents are in.

Before you decide

The benefit of moving now and the cost of waiting

A useful comparison considers both what the finance may make possible and what leaving the underlying need unresolved may continue to cost.

Pros

Access the vehicles or equipment needed to take on suitable work and serve customers.
Preserve working capital for wages, materials, tax and other operating expenses.
Replace an unreliable or unsuitable asset before downtime and repair costs increase.

Cons

Suitable contracts may be missed when the required vehicle or equipment is not available.
An older asset can keep breaking down when there is not enough cash available to replace it outright.
Buying the asset outright can reduce the cash buffer available for payroll, materials and unexpected costs.

Purchases and purposes