Equipment Finance
Get the vehicles, machinery and equipment your business needs without tying up your working capital.
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The equipment you need, financed sensibly
Equipment finance helps a business acquire vehicles, machinery, technology and other assets while spreading the cost over time. Used well, it keeps working capital free for wages, stock and the unexpected, and ties the cost of an asset to the period in which it earns its keep.
The asset itself usually acts as security for the loan, which is one reason equipment finance can be simpler to arrange than other business lending.
Choosing a structure
There are several ways to finance equipment, including a chattel mortgage, a finance lease and hire purchase. They differ in who owns the asset during the term, what happens at the end and how repayments are treated in your accounts. Some arrangements include a balloon or residual payment, which lowers the regular repayments but leaves an amount owing at the end of the term. We explain how each structure works so you can choose with a clear view of the trade-offs.
Matching the term to the asset
A good rule of thumb is to line the loan term up with the working life of the asset. Paying for equipment long after it has been replaced is costly, and paying it off too quickly can strain cash flow. We help you weigh the term, the repayment amount and any final payment against how long you expect to use the asset.
Because each structure can lead to different tax, GST and accounting outcomes, we suggest involving your accountant in the decision. Finance is often available for used as well as new assets, subject to each lender's rules on age and condition.
How a MAXLEND broker helps
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The structures explained
We set out how each type of equipment finance works, so you can choose with confidence.
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Terms that fit the asset
We help you match the term and any final payment to the working life of the equipment.
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Suitable lenders compared
We compare lenders that finance your type of asset, whether new or used.
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A quick, clear process
We tell you what the lender needs up front, prepare the application and keep you informed.
How equipment finance works
A clear process from first conversation to settlement, with a MAXLEND broker beside you at each step.
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Tell us what you need
We discuss the asset, its cost and how it will be used in the business.
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Compare finance structures
We explain the options and compare suitable lenders.
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Approval
We prepare and lodge your application.
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Purchase
Once approved, the supplier is paid and you take delivery.
Choosing the right structure
The main differences between structures are who owns the asset during the term, what happens at the end and how the payments are treated for tax and accounting. Because those outcomes differ, please involve your accountant when choosing.
It usually makes sense to match the loan term to the working life of the asset. A balloon or residual payment at the end lowers the regular payments but leaves a lump sum to pay or refinance later.
Documents you may be asked for
- A quote or invoice for the equipment
- Business details and time trading
- Financial statements or recent bank statements, depending on the amount
- Identification for directors or owners
- Details of existing finance commitments
General information only. A broker can explain how it applies to your circumstances.
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Equipment Finance: common questions
See all questionsCan I finance second-hand equipment?
Often, yes. It depends on the lender, the type of asset and its age and condition. Older assets may attract shorter terms.
What is a balloon payment?
It is a lump sum owed at the end of the term. It reduces the regular payments, but you need to plan how you will pay it, whether from cash, by refinancing or by selling the asset.
Can I finance vehicles as well as machinery?
Yes. Equipment finance commonly covers work vehicles, trucks, trailers, machinery, tools and technology used in a business.
Can you help with business and commercial loans as well as home loans?
Yes. As well as residential lending, we help with business loans, commercial property loans and equipment finance.
What will a lender want to see for a business loan?
This varies with the type and size of the loan, but lenders commonly ask for business financial statements, tax returns, business activity statements and details of existing debts. We will let you know what applies to your application.
Choosing the right way to finance equipment
The asset, how long you will use it and how your business accounts for it all shape the right structure.
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Own it or use it
Some structures give you ownership from the start, while others let you use the asset and decide what happens at the end of the term.
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Match the term to the working life
Paying for an asset long after it has stopped earning its keep is costly. Line the term up with how long you expect to use it.
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Understand any final payment
A balloon or residual payment lowers the regular repayments but leaves an amount owing at the end. Plan for how it will be paid.
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Check the tax treatment
Each structure can be treated differently for tax and GST. Confirm the effect on your business with your accountant.
Ready to talk about equipment finance?
Book a time with a MAXLEND broker. There is no obligation.