Business Finance

Equipment & Machinery Finance

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All your business needs sorted, all in one place.

From the big-ticket items such as tractors, excavators, forklifts and cranes to the vital everyday fit outs, tech equipment and everything else between – we have got you. 

What is Equipment & Machinery Financing?

Equipment financing is a type of loan used to purchase business equipment typically in the form of computers, coffee machines. The loan is paid off in instalments over the term of the loan, which ranges between 1 – 7 years depending on the lender.

Loan options for Equipment & Machinery financing:


Finance lease is used to buy and asset such as equipment for the major part of its useful life. This type of loan allows the borrower to have the use of an asset and the benefits of ownership, while the lender retains ownerships of the asset until the end of the lease. Via a financial lease all risk is transferred to the borrower and as such it will often have a lower interest rate than other types of equipment finance.

To learn more about Finance Leases click here.


An operating lease is an agreement where the lender agrees to rent equipment to a business for use over a specified time period. When the lease term ends, the equipment is returned to the lender and the business is not left with the liability of a residual value or any further obligation. Vehicle leases, building leases and equipment leases can all qualify as operating leases.
An operating lease is an asset financing option which can be helpful to businesses since it carries no residual risks while providing access to needed assets.

To learn more about Operating leases click here.


A chattel mortgage or equipment loan is a loan used to purchase an item of movable personal property such as a car, a piece of agriculture or construction equipment, a boat or a mobile home. The property, or chattel, secures the loan and the lender holds ownership of the asset until it has been paid off.

To learn more about Chattel Mortgage click here.


A commercial hire purchase (CHP) involves a lender agreeing to purchase an asset (usually a vehicle) on behalf of the borrower and then hiring it back to the borrower over a set period of time. This means that the borrower is not legally the owner of the asset, however they have full use of it for the term of the contract.

To learn more about Commercial Hire Purchase click here.

What can I purchase using Equipment & Machinery Finance?

Generally, equipment finance covers all tangible assets within your business excluding real estate. Some of the most common equipment types that your business can obtain include:

  • Computers/Laptops
  • Coffee machines
  • Printing machines
  • Extensive fit outs including furniture and appliances
  • Manufacturing Machines
  • Medical equipment
  • Company vehicles

How many business assets can be included in Equipment & Machinery Financing?

There is no specified minimum or a maximum number of assets which can be included in equipment financing. Additionally, there is not usually a limit in regard to the value of the assets which will be included in the operating lease. Although, some lenders may require a minimum equipment financing amount.

Your businesses’ financial circumstances and what you require in terms of assets is what should be key in determining the number of assets that you may want to include for equipment financing.

Benefits of Equipment & Machinery Financing?

  • Allows you to preserve working capital
  • Gain access to the latest equipment and technology without the risks associated with ownership
  • Eliminate the risks the residual value of obsolete equipment
  • Flexibility to frequently upgrade assets and respond to changing customer and market demands. Specifically relevant for IT equipment.
  • Rental payments may be tax-deductible if you use the asset to generate income
  • May be able to claim the input tax credit for rental and other charges that are subject to GST
  • Option of all-inclusive fixed payments to cover all maintenance and other operating costs associated with the asset

Can I Finance used Equipment & Machinery?

You can use a secured business loan to finance used business vehicles and assets. However, lenders may charge a higher interest rate if you are planning on buying a used vehicle or asset, because of the added risk and lower value of the asset.

Does Equipment & Machinery Finance have balloon payment options?

Equipment finance generally have the option of a balloon payment at the end of the term. There are a few different options available to you once the balloon term is due, if you choose to utilise one, as will be discussed below.

If you want to keep monthly repayments low for cash flow purposes, you might choose to have a balloon payment. The higher the balloon payment, the lower the monthly repayments will be in exchange for owing the lender a lump sum at the end of the loan term. Using the option of a balloon can assist a business purchase a more expensive asset while still keeping monthly repayments affordable.

However, you should always keep in mind the expected value of the vehicle at the end of the loan term to ensure the balloon does not exceed that value.

What happens at the end of term?

At the end of the term, if there is a balloon payment due, you or your business will have a few options available to you depending on the lender and the terms and conditions of your agreement. Generally, you may be able to do one of the following:

  • Trade the equipment in and purchase another with a new finance agreement, repaying the balloon amount in the process.
  • Repay the balloon with funds at hand and retain or sell the equipment independently.
  • Refinance the equipment or Balloon amount and retain the vehicle.

Eligibility criteria for Equipment & Machinery Financing?

Businesses, sole traders and self – employed individuals can all make use equipment and machinery finance. To be eligible you will require the following:

  • At least 18 years old
  • An Australian resident
  • Have a good credit rating and not be going through the process of bankruptcy
  • Have a valid Australian Business Number (ABN)
  • Is registered for Goods and Services Tax (GST)

Most lenders will also require that the business has been trading for more than 12 months, however the minimum length of trade varies between lenders.

How do I apply?

If you would like to know more or need assistance determining the best equipment financing solution for you, one of our experienced finance consultants are happy to assist, contact us today.

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