Equipment Finance That Keeps Your Cash in the Business

Equipment finance is a category of business lending specifically designed to help Australian businesses acquire assets without paying the full purchase price upfront. Rather than depleting working capital or drawing on a business line of credit, you finance the asset through a structured loan or lease — and in most cases, the asset itself acts as security for the finance, which means property ownership is generally not required.

There are four main structures used in Australia: chattel mortgage, finance lease, hire purchase, and operating lease. Each works differently in terms of who owns the asset during the loan term, how GST is claimed, and what happens at the end of the agreement. Consequently, the structure you choose has material implications for your accounting treatment and cash flow — which is why understanding your options before you sign is important. In contrast to working capital loans, which address cash flow gaps, equipment finance is specifically for asset acquisition. For a full overview of business finance options, see our business loans page. Speak to us before approaching any lender.

This is one of the most important questions in equipment finance, and one that businesses frequently get wrong because the monthly repayments on both products can look very similar. The key difference is ownership. With a chattel mortgage, your business owns the asset from settlement day one — the lender holds a security interest over it, which is discharged when the loan is repaid. With a finance lease, the lender owns the asset throughout the term and leases it to your business.

Furthermore, the two structures differ in how GST is claimed. Under a chattel mortgage, businesses registered for GST on a cash basis may be able to claim the full GST amount in their first BAS after settlement. Under a finance lease, GST is typically claimed progressively on each lease payment. This timing difference can be significant for cash flow in the months following purchase. At the end of a finance lease, you generally have the option to purchase the asset at a pre-agreed residual value, extend the lease, or return the asset — whereas with a chattel mortgage, the asset is simply yours. Your accountant should confirm which structure suits your accounting method before any application is submitted.

No deposit is required with many equipment finance lenders in Australia. No-deposit or 100% finance options are widely available for established businesses with a clean credit history and an asset that meets the lender's criteria. Because the asset acts as security, lenders can often extend finance without requiring upfront capital — which is one of the key advantages of equipment finance over unsecured lending.

However, providing a deposit of 10% to 30% of the purchase price can improve the interest rate you are offered and reduce your monthly repayments over the loan term. A deposit also reduces the lender's exposure, which is particularly relevant for older or higher-kilometre used assets where the lender's appetite is naturally more conservative. Additionally, many equipment finance contracts include an optional balloon payment — a lump sum at the end of the term that reduces monthly repayments during the loan period. We model both deposit and no-deposit scenarios, with and without a balloon, for every client before recommending an approach.

Yes — both used equipment and private sale assets can be financed through equipment finance in Australia, though the options and rates available vary depending on the asset's age, condition, and how it is being purchased. New assets from dealers generally attract the most competitive rates and longest available terms. Nevertheless, used assets are accepted by most specialist and non-bank lenders, typically subject to age limits at the end of the loan term — generally no older than 10 to 15 years depending on asset type.

Private sale purchases add a layer of complexity because the lender cannot rely on a dealer invoice to verify the asset's value, condition, and ownership. As a result, additional verification is typically required — which can add time and may attract a slightly higher interest rate compared to a dealer purchase. In our experience, the additional documentation required for a private sale is manageable when the application is well-prepared upfront. We identify lenders who actively finance private sale assets in your specific category, rather than approaching lenders who treat private sales as exceptions. Get in touch with the asset details and we can advise on what is available.

The finance structure you choose has real implications for how the asset and the associated debt appear in your accounts — and this varies meaningfully between structures. With a chattel mortgage or hire purchase, the asset typically appears on your balance sheet as a business asset from the outset. With a finance lease, the asset is recorded as a right-of-use asset under current Australian accounting standards (AASB 16). With an operating lease, the asset may not appear on your balance sheet in the same way, since you never own it and it is returned at the end of the term.

Furthermore, the deductibility of payments and the timing of any GST benefits differ between structures — as does the treatment of depreciation, which may potentially apply to owned or hire-purchased assets. These are not minor administrative differences; consequently, the wrong structure can create unnecessary complexity at tax time or result in a business missing GST timing benefits it was entitled to. We always recommend discussing your intended finance structure with your accountant before signing, and we actively work alongside accountants to ensure the structure we recommend fits their advice. This is a standard part of how we work, not an afterthought.

Equipment finance is one of the fastest forms of business lending to arrange when the application is correctly prepared. For standard assets purchased from a dealer — vehicles, common machinery, technology — low-doc approvals can reach conditional approval within 24 to 48 hours, with settlement often achievable the same or next business day once signed documents are received.

However, the timeline varies depending on the asset type, lender, and documentation required. Full-doc applications for larger or more complex assets — specialist medical equipment, imported machinery, significant fleet purchases — typically take 3 to 5 business days. Private sale assets require additional verification steps that can add time regardless of the loan size. In our experience, the most common source of delays is incomplete documentation at the time of submission, not lender processing times. We pre-check everything before lodging any application, which is why our approval timelines are consistently faster than going direct. If speed is a priority, contact us with the asset details and we can assess what is achievable with the right lender for your situation.

Truck finance in Australia operates on the same structural principles as other equipment finance — chattel mortgage, finance lease, hire purchase, and operating lease are all available. However, heavy vehicle finance has some specific characteristics that set it apart from standard equipment lending. Lenders assess trucks and prime movers based on age, kilometres, make, model, and the business use case — and appetite varies significantly between lenders for older or high-kilometre stock.

For most owner-operators and transport businesses, a chattel mortgage is the most common structure because it delivers immediate ownership, allows GST to be claimed upfront, and enables the vehicle to be depreciated as a business asset — subject to your accounting method and ATO eligibility. Loan terms for trucks typically run between 3 and 7 years, with balloon payments commonly used to manage monthly repayments. Furthermore, specialist non-bank lenders who focus on commercial transport often have more competitive rates and more flexible approval criteria for heavy vehicles than the major banks. In our experience, matching the asset profile — including age and kilometres — to the right lender before lodging any application is the single most important step in getting a truck finance approval across the line. Get in touch with the vehicle details and we can advise on what is available.

Yes — fleet finance arrangements allow businesses to finance multiple vehicles or assets through a single structured facility rather than applying for each asset individually. Fleet finance is available for businesses purchasing two or more vehicles simultaneously, and in some cases for businesses adding to an existing fleet. The key advantage is efficiency — one application, one approval process, and often access to volume-based pricing that reduces the rate across all assets in the facility.

However, fleet finance is not simply multiple individual loans bundled together. The lender assesses the business's capacity to service the entire facility, not just one vehicle, which means the financial assessment is more detailed. Additionally, different assets within a fleet can be structured differently — for example, some vehicles might be on chattel mortgages while others are on finance leases — depending on their use case and the business's accounting requirements. We regularly help businesses structure fleet finance facilities that accommodate mixed asset types and varied accounting treatments across the same approval. If you are looking to finance two or more vehicles or assets, speak to us before approaching any lender individually.