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Machinery Finance in Australia

Getting the right machinery finance in Australia can make or break your business growth plans. It lets you acquire the equipment you need while keeping your cash flow healthy.

 

At Selectabroker, we connect you with specialist machinery finance brokers who understand your industry and equipment needs. Whether you’re after a tractor, excavator, or manufacturing equipment, we’ll match you with a broker who finds the right funding solution.

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What is Machinery Finance?

Machinery finance, or a business machinery loan, is a form of commercial finance that lets you acquire business equipment without paying the full purchase price up front. A lender funds the purchase, and you repay the amount over time through regular instalments.

 

Here’s how it works:

 

  1. You identify the machinery your business needs
  2. A lender provides the funds to purchase it
  3. The equipment usually acts as security for the loan
  4. You make regular repayments (weekly, fortnightly, or monthly)
  5. At the end of the term, you either own the equipment or have options to purchase, upgrade, or return it

 

Heavy machinery loans​ are a practical alternative to paying cash up front, especially when that cash could be better used for hiring staff, buying stock, or covering unexpected expenses.

Types of Machinery Finance Available in Australia

Different finance structures suit different business situations. Choosing the right business machinery loan can save you money and hassle down the track.

Chattel Mortgage

With a chattel mortgage, you own the equipment from day one. The lender provides the funds to buy it, and the machinery acts as security, meaning the lender holds a mortgage over the asset.

 

Tax benefits include the ability to claim GST upfront, depreciation on the asset, and interest payments as deductions. It’s best for profitable businesses wanting to own their equipment and maximise tax benefits.

The lender owns the equipment while you lease it. You make regular rental payments, and at the end of the lease term, you typically have three options: purchase the equipment for a predetermined amount, return it to the lender, or upgrade to newer machinery.

 

You can claim rental payments as tax-deductible, and it’s ideal for businesses seeking flexibility to upgrade equipment regularly or prefer to have assets off their balance sheet.

This is a long-term rental arrangement, where the equipment stays off your balance sheet, and you return it at the end of the term. It’s best for short-term equipment needs or industries where technology moves quickly and equipment depreciates fast.

You hire the equipment with an agreement to own it eventually, and ownership transfers to you automatically upon settlement of your business machinery loan​.

 

You can claim interest payments as a tax deduction and depreciation on the asset. If you’re seeking a straightforward path to ownership without the complexities of a chattel mortgage, a CHP works best.

You make fixed rental payments over a set period, and at the end, the equipment is yours. No residual payments or complicated options. It’s perfect for businesses that want a simple, no-fuss arrangement without worrying about balloon payments or end-of-term decisions.

What Machinery Can You Finance?

Pretty much any business equipment you can think of. Our brokers arrange heavy machinery loans across all industries:

 

  • Construction & Earthmoving: Excavators, bulldozers, graders, loaders, compactors, rollers, concrete pumps
  • Transport & Materials Handling: Forklifts, telehandlers, cranes, pallet jacks, container handlers
  • Manufacturing & Industrial: CNC machines, presses, injection moulding equipment, cutting and welding machinery, packaging equipment
  • Agriculture & Farming: Tractors, harvesters, balers, irrigation systems, seeders, dairy equipment
  • Mining & Quarry: Drilling equipment, crushers, screening plants, haul trucks
  • Other Equipment: Medical equipment, hospitality equipment, printing presses, IT servers, renewable energy equipment

New vs Used Machinery Finance

Both new and used machinery can be financed; you just need the right lender.

 

New Machinery:

  • Easier to finance with longer loan terms (up to 7 years)
  • Higher LVR options (sometimes 100%)
  • Manufacturer warranties included

 

Used Machinery:

  • Often requires shorter loan terms
  • Age limits vary by lender (some fund equipment 10–15+ years old)
  • May require a larger deposit
  • Cost-effective with lower upfront costs

 

All purchase types covered:

  • Dealer purchases
  • Private sales
  • Auctions

 

The trick with used machinery is finding a lender who understands the equipment’s residual value. That’s where a specialist machinery finance broker earns their keep.

Why Use a Machinery Finance Broker?

  • Access to 50+ Lenders: Specialist brokers work with alternative lenders, private lenders, and industry-specific financiers. More options mean better approval chances and competitive terms.
  • Compare Rates Across the Market: Different lenders structure business machinery loan products differently. A broker shows you the actual cost of each option, not just the headline rate.
  • Industry Expertise: A broker specialising in construction equipment understands excavator residual values differently than someone doing car loans. Industry knowledge matters for approval.
  • Higher Approval Rates: Brokers know which lenders suit your profile. They don’t waste time on applications that’ll get rejected.
  • Save Time: One application, multiple lender options. Provide your details once, and your broker handles the rest.
  • Handle Paperwork and Negotiations: Your broker manages documentation, answers lender queries, and negotiates on your behalf.
  • Free Service: Lenders pay the broker’s commission, not you. Get expert advice at no charge.

How Selectabroker Helps You Finance Machinery

We connect you with the right specialist broker for your situation.

 

  • Free Broker Matching: Tell us what equipment you need, and we’ll match you with a machinery finance broker who specialises in your industry.
  • Specialist Equipment Finance Brokers: Our network focuses specifically on plant and machinery loans, from chattel mortgages to operating leases.
  • All Industries Covered: Experienced tailored solutions, whether that’s in construction, agriculture, manufacturing, or healthcare.
  • Options for New Businesses: Even with limited trading history, we connect you with brokers who have access to low-doc lenders.
  • Fast Turnaround: Some brokers can get approvals in as little as 24 hours for straightforward applications.
  • All Purchase Types: New, used, private sale, auction – our brokers arrange finance for all.
  • Right Structure for You: Your broker recommends whether a chattel mortgage, finance lease, or another structure suits your situation.

Machinery Finance Eligibility Requirements

Basic Requirements

  • Active ABN (some lenders accept new ABNs)
  • Minimum trading history (6 months for most, low-doc options available)
  • Australian citizen or permanent resident
  • 18+ years old
  • Business financials and cash flow
  • Credit history (personal and business)
  • Type and age of machinery
  • Industry and use case
  • Existing debts and commitments
  • Full Doc: Financial statements, tax returns, bank statements, equipment quote
  • Low Doc: BAS statements, accountant’s letter, bank statements, equipment quote
  • No Doc: Self-declaration (for established businesses, higher rates apply)

 

Your machinery finance broker will specify what’s needed based on which lenders they’re approaching.

Loan-to-Value Ratios (LVR) and Deposits

The Loan-to-Value Ratio (LVR) is how much you’re borrowing compared to the equipment’s value. Many lenders offer 100% finance (no deposit required) for new equipment from established suppliers, strong business financials, or equipment with good resale value.

What Affects Your LVR

  • Asset type and age: Brand new machinery from a major manufacturer? Higher LVR possible. Older or specialised equipment? You might need a deposit.
  • Your business profile: Established profitable business vs startup affects how much lenders will advance
  • Lender policies: Each lender has their own appetite for risk and maximum LVR limits

Even if optional, putting down 10-20% can reduce monthly repayments, lower total interest cost, and improve borrowing terms. If cash is tight, 100% finance keeps working capital free.

Understanding Balloon Payments

A balloon payment is a larger lump sum due at the end of your loan term. It’s optional but can significantly reduce regular repayments. You defer a portion (typically 20–50%) to the end, which lowers monthly payments.

This usually means better month-to-month cash flow and lower regular repayments, though you’ll have a large payment due at the end and pay more total interest.

Your Options When Due

  • Pay it out with saved cash
  • Refinance the balloon amount
  • Trade in and upgrade to new machinery
  • Sell the equipment

Tax Benefits of Machinery Finance

Financing equipment can offer tax advantages, but always consult your accountant for specific advice.

 

  • GST: Claim back GST upfront with a chattel mortgage (if GST-registered)
  • Depreciation: Write off the asset’s value over time, reducing taxable income
  • Interest Deductions: Loan interest is generally tax-deductible
  • Instant Asset Write-Off: May immediately deduct equipment under certain thresholds. Check the ATO website for current limits.

Industries We Help Finance Machinery For

Our specialist brokers work across every industry using machinery, including:

  • Construction & Civil
  • Agriculture & Farming
  • Manufacturing
  • Transport & Logistics
  • Mining & Quarry
  • Healthcare & Medical
  • Hospitality

Finance Your Next Machine, Get Matched Today

Buying machinery shouldn’t mean emptying your bank account or spending weeks chasing approvals.

 

At Selectabroker, we connect you with brokers for machinery finance in Australia who specialise in your industry. They’ll compare options and get you sorted with the right heavy machinery loans for your business.

 

Get in touch with Selectabroker today, and let’s match you with a broker who knows equipment financing inside out.

Machinery Finance in Australia​ FAQs

Do I need a deposit for machinery finance?

Not always. Many lenders offer up to 100% finance for established businesses with solid financials. Some may require a deposit (typically 10-20%) for newer businesses or older equipment.

Yes. Both new and used machinery can be financed. Some lenders specialise in older equipment and understand residual values better than banks. Whether buying from a dealer, private seller, or auction, we can connect you with the right machinery finance broker​.

With a chattel mortgage, you own the equipment from day one and can claim GST upfront plus depreciation. With a finance lease, the lender owns the equipment and you lease it, with the rental payments tax-deductible.

For straightforward applications, many lenders can approve within 24-48 hours. Low-doc or complex applications may take longer. We can’t guarantee specific approval times, as every business machinery loan​ and situation differs, but our brokers work efficiently to keep things moving.

A balloon payment is a larger final payment at the end of your loan term. It reduces regular monthly repayments, helping cash flow. At the end, you can pay it out, refinance, or trade in the machine. Whether it’s right depends on your cash flow and equipment plans. We recommend speaking to a financial advisor when considering your financing options.

Yes. At Selectabroker, our matching service is completely free. Brokers are paid by lenders, not you, so you get expert help comparing options at no cost.

Craig Gadsden

Craig Gadsden

Loan Expert

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Craig Gadsden
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