Equipment finance in Australia, explained the way it actually works
Finance the asset, keep your cash in the business, and own the equipment from day one. Here's how a chattel mortgage works, when a balloon makes sense, and how to get the structure right.
Equipment finance lets your business get the asset it needs now and pay it off in instalments, instead of tying up cash — while still using the value of the asset to earn. Think of it like a mortgage for your gear: you own it from the start, the financier holds security over it, and you spread the cost across a term that suits your revenue. Below is the honest version of how it works, including the parts most sites skip.
Who it's for
Established businesses, contractors, transport, civil, agribusiness and trades across Australia.
Chattel mortgage: you own it from day one
A chattel mortgage is the standard commercial structure in Australia, and it's the one we arrange. Your business takes ownership of the equipment immediately, and the financier registers a charge over it as security. Because you own the asset, you can generally claim the GST input tax credit on the purchase and depreciate the asset over time — confirm the specifics with your accountant. We don't write hire purchase or finance lease; for almost every business, a chattel mortgage is cleaner, simpler and better on tax.
A balloon keeps cash in your business
The most common mistake is not putting a balloon (residual) on the deal. A balloon is a lump sum deferred to the end of the term — adding one lowers your monthly repayment and leaves more working capital in the business, which is the entire reason to finance rather than pay cash. Around 30% is a sensible figure on most assets; new vehicles can stretch to 40%. At the end of the term you refinance the balloon, pay it out, or upgrade. Use the calculator to see how the balloon changes both your repayment and how much you can finance.
Low-doc: established ABN + property usually means no financials
If your ABN has been active for 2+ years, you're registered for GST, and a director owns property, you can often access low-doc finance with no tax returns, BAS or bank statements — frequently into six figures. It's faster and lighter on paperwork. New businesses, very large amounts, or certain assets may need a fuller submission, and occasionally full-doc gets you a sharper rate. We'll tell you which path is genuinely worth it for your numbers.
Already own the gear? Raise capital against it
If your business owns equipment outright, you can usually borrow against it — often up to around 90% of current market value, even years into ownership — to free up working capital. There's also sale-and-buyback within six months of a purchase. Both are typically low-doc. It's one of the most under-used moves in commercial finance: cash sitting idle in an excavator or a truck can be working in your business instead.
Even if you have the cash, financing often wins
Plenty of owners pay cash simply because the money is sitting there. But leaving cash in the business and financing the asset protects your liquidity for the things you can't predict — a slow quarter, a big opportunity, a repair bill. The asset earns either way; the question is whether you'd rather have the cash on hand. For most growing businesses, the answer is yes.
Lender fit changes the outcome on almost every deal
Every lender has its own credit policy — what assets they like, what ABN age they want, how they treat property, how fast they move. Going to the wrong one means a worse rate, a decline, or a deal that simply doesn't fit. Knowing which funder suits your situation this week is the part you're really paying a broker for. We match the deal to the lender most likely to approve it on the right terms — and we'll be straight with you if the numbers don't stack up.
Talk to a specialist
Get a competitive rate and the right structure for your next asset. No obligation, no credit-file hit to ask.
- Panel of commercial lenders
- Low-doc options for established ABNs
- Pre-approval before you buy
Work it out backwards.
Start with a repayment that keeps cash in your business and see what it finances — then we’ll line up a competitive rate to match.
A balloon lowers your monthly repayment and keeps cash in the business. ~30% is common; new vehicles can go to 40%.
Real rates today typically sit in the 6–9% range depending on the asset, its age, your ABN and security. A guide, not a quote.
Estimate only, excluding fees and charges. Not a quote, offer, or credit assistance. Actual repayments depend on the lender’s assessment.
Common questions
We arrange chattel mortgages. Under a chattel mortgage your business owns the asset from day one and the financier holds security over it — which generally gives you the GST input tax credit upfront and depreciation over time. Hire purchase and finance lease are different structures where ownership and tax treatment work differently; for the vast majority of commercial buyers, a chattel mortgage is the better fit, which is why it's what we focus on. Confirm tax treatment with your accountant.
Explore more finance
Ready to move on your next asset?
Get pre-approved and negotiate as a cash-equivalent buyer — we'll handle the rate, the structure and the paperwork.