Equipment Finance: Fund the Tools Your Business Runs On
From an excavator to a dental chair, a coffee machine to a commercial fit-out, equipment finance lets you get the gear your business needs now and pay for it over time, out of the income it helps earn.
The right structure depends on what you’re buying, how long it will last and whether you want to own it. Here’s how it works.
What can be financed
- Construction and earthmoving equipment
- Agricultural machinery, such as tractors and harvesters
- Medical, dental and allied health equipment
- Hospitality and kitchen equipment
- Manufacturing and workshop machinery
- IT, office equipment and phone systems
- Shop and office fit-outs
- Solar and energy-saving equipment
Your options
- Chattel mortgage: your business owns the equipment from day one
- Finance lease: the lender owns it and you lease it, with an option to buy at the end
- Hire purchase: you own it once the final payment is made
- Rental: useful for equipment that goes out of date quickly, like IT, where you want to upgrade regularly
The business.gov.au leasing or buying guide compares leasing and buying equipment, including repairs, upgrades and tax.
Why businesses finance equipment
- Keep cash for wages, stock and the unexpected
- Get better equipment sooner, which can lift productivity and income
- Fixed repayments make budgeting easier
- Possible tax benefits, depending on the structure
The instant asset write-off
Small businesses with aggregated turnover under $10 million can generally claim an immediate deduction for eligible assets costing less than $20,000 each. The ATO confirms this $20,000 limit is permanent from 1 July 2026, and it applies per asset, so several items can qualify. Assets costing more usually go into a small business depreciation pool.
Read the ATO’s instant asset write-off page and check with your accountant before you buy.
What lenders look at
- Time in business and your industry
- The type, age and resale value of the equipment
- Recent BAS, bank statements or financials
- Your credit history
Equipment that holds its value and is easy to resell, like a popular excavator, is usually easier to finance than specialised or custom-built gear.
Example
A landscaping business wins a council contract and needs a second excavator. Rather than drain its cash, it finances the machine with a chattel mortgage over five years. The new contract income covers the repayments, and the business keeps its cash buffer for wages.
Illustrative example only.
FAQs
Can I finance second-hand equipment?
Yes, many lenders will, within age and condition limits. Private sales may need an inspection or valuation.
Can I finance equipment from overseas?
Some lenders can, but it’s more complex. Talk to us before you commit to an overseas supplier.
Can I finance a fit-out?
Yes. Fit-outs can be harder because they’re hard to resell, so lenders may want a stronger application or extra security. For a full new building, see construction finance.
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.