Asset Finance: Vehicles, Equipment and Machinery for Your Business
Asset finance lets you buy the vehicles, equipment and machinery your business needs without tying up your cash. The asset itself is usually the security for the loan, which keeps things simpler than borrowing against property.
We compare asset finance lenders for sole traders, companies and trusts, and help employees understand car options like salary packaging. Our job is to find finance that fits how your business earns money, not just the lowest headline rate.
What we can finance
- Cars, utes and vans for business use
- Trucks and trailers, from light trucks to prime movers
- Equipment and machinery, such as earthmoving gear, medical equipment, fit-outs, IT and tools
- Agricultural equipment, including tractors and harvesters
Types of asset finance
- Chattel mortgage: your business owns the asset from day one and the lender holds security over it. The most common option for businesses.
- Finance lease: the lender owns the asset and leases it to your business, with an option to buy at the end.
- Hire purchase: you pay the asset off in instalments and own it once the final payment is made.
- Novated lease: a car lease through your employer’s salary packaging. See novated lease vs car loan.
- Consumer car loan: for cars mainly used privately.
Lease or buy?
Leasing usually means lower upfront cost and easier upgrades. Buying means you own the asset, can modify it and can sell it when you’re done. The Australian Government’s leasing or buying guide on business.gov.au sets out the pros and cons side by side. We’ll run the numbers both ways for your situation.
Why use asset finance
- Keep your cash for wages, stock and growth
- Match repayments to the life of the asset and the income it earns
- Possible tax benefits, such as deductions for interest and depreciation on the business-use portion
- Balloon options to lower regular repayments, with a lump sum at the end
Small businesses with an aggregated turnover under $10 million can generally write off eligible assets costing less than $20,000 each, and the ATO confirms this limit is now permanent from 1 July 2026. See the ATO’s instant asset write-off page and check with your accountant.
What you'll usually need
- Your ABN, and how long you’ve been trading
- Recent BAS statements, bank statements or financials, depending on the amount and lender
- Details of the asset and the seller (dealer or private)
- Your credit history
Many lenders offer simpler applications for established businesses with a good track record, especially for smaller amounts. Owning property often helps too.
Planning to buy a home soon?
Asset finance counts as debt when you apply for a home loan, even if it’s in the business name and you’ve personally guaranteed it. If you’re also planning to buy or refinance a home, talk to us first so we can plan both together. See self-employed home loans.
FAQs
Can I finance a used asset or buy privately?
Often yes. Lenders have rules about the asset’s age and condition, and private sales need extra checks.
What is a balloon payment?
A lump sum due at the end of the loan. It lowers your regular repayments, but you need a plan to pay it, refinance it or sell the asset.
Can a new business get asset finance?
Yes, though options are fewer and a deposit may be needed. A property owner or a strong credit history helps.
Albert Waldron is a Credit Representative (407514) of Australian Finance Group Ltd, Australian Credit Licence 389087. This is general information only and does not take into account your personal circumstances. Please seek advice before acting. Finance is subject to lender approval, terms and conditions. Tax information is general only; speak to your accountant about your situation.